PVH Brand Development Process And Framework Of The World'S Fourth Largest Apparel Group

The US PVH (Philips-Van-Heusen) Group operates men's wear, women's wear and children's wear.

Product like

Founded in 1881, the group started its business as a shirt, with annual sales of over $four billion and six hundred million and the world's fourth largest clothing group.

nowadays

The company is headquartered in New York with Calvin Klein, Tommy Hilfiger, Izod, Van Heusen, Bass, Jimlar, Arrow and other brands, and has obtained the right to sell, including DKNY, Arrow, cable, cable, cable and other private brands.

PVH sells more than 15000 department stores in the United States, such as Federated, Kohl 's, Belk, JCPenney, Stage Stores, etc., with some of the largest apparel companies in the world.

The client has established a lasting partnership and other wholesalers (such as May Co., Dillard 's, Profitts, Nordstrom, etc.).

PVH also sells clothing products through OUTLET stores, and manages the sales status of each brand separately.

PVH is just an operation group of a brand operation company. When they promoted, they deliberately promoted a brand and didn't really promote the company's name.

PVH has three words, one is PHILPS, PHILPS is the founder of fashion, and "V" is the brand of shirts. It is a well-known brand that we are promoting.

It's more interesting. When American TV was just created, PVH was the first to advertise on TV.

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Brand development process and framework

Successful sales channel management originated from a hundred years' accumulation.

Before 1995, the growth of PVH was mainly driven by warehousing OUTLET retail business.

At that time, the five brands sold were Van Heusen, Bass, Izod, Gant and Geoffrey Beene, and PVH sold products in 695 stores in the storage type OUTLET retail mall, which are owned by the company itself.

The sale management, which takes the retail business as the core, causes the company to expand excessively in the OUTLET retail channel. As a result, the development and expansion of PVH depend too much on the OUTLET market rather than on the growth of the market share of the company's products.

Finally, in 1994, the weakening of the OUTLET industry in the United States led to the downturn of PVH operation.

Although the retail mode of OUTLET is very important, the leading companies in the industry have begun to turn to clothing sales through department stores.

In 1995, PVH launched a strategic restructuring plan to reduce investment in OUTLET sales channels, hoping to reduce the number of retail outlets and retail operation costs.

In 1997, PVH shut down 400 of the worst performing stores and opened 50 new stores to ease the problem of over expansion in OUTLET channels, reducing retail outlets from 1000 to 650.

Gradually, PVH's retail business has become a useful supplement to wholesale business.

While reducing the sales outlets of OUTLET retail channels, PVH believes that marketing through wholesale channels can enhance the market awareness of products.

For a long time, the company has established close customer relationship with May Co., Federated, Dillard 's, Profitts and JCPenney.

The wholesale customers of PVH footwear products include Nordstrom, May Co., Dillard 's, Federated and Belk' s.

Regardless of clothing or footwear products wholesale, these large customers have worked with PVH for more than 25 years, and as early as the end of last century, ten wholesale customers occupied 60% of the wholesale business of PVH.

By 04/05, retail business once again became the focus of the company's sales management strategy.

Through the form of retail stores, the brand can be displayed to a large number of buyers, which can expand the scope of traditional retail customers.

In 2005, the sales environment of OUTLET channels in the US was quite healthy.

Through effective marketing methods, customers can understand product connotation and brand value more deeply.

PVH continues to open Calvin Klein stores in OUTLET stores in the US, and expects to reach 85-90 stores in 08 years.

Now, in the OUTLET retail sales channel, PVH has achieved more than expected profit.

Multi brand covers a variety of consumer layer

In order to reduce competition among private brands, PVH has built up a broad customer base for all brands.

Each brand's clothing product design is based on ensuring a stable customer base, rather than pursuing fast changing fashion trends.

Expanding the product category range is also one of the ways to enhance the attractiveness of the brand to the target customers.

PVH is constantly improving in terms of design and clothing production, with a view to widening the product category of brands, and even breaking the brand restrictions of products, such as placing formal shirts under the name of Bass for sale.

Nowadays, PVH brand sales have achieved the best results in their respective markets.

In a mature

Brand is an important way to distinguish product grades.

At the end of the last century, the five major brands of PVH were famous for their moderate price and good quality.

The company has been trying to enter the high-end fashion market, such as trying to push the Bass brand to a more high-end market, but this effort was not very effective at that time.

Now, from the PVH internal brand pricing analysis chart, we can see that PVH has successfully entered the field of high-end fashion with Calvin Klein Collection, CK Calvin Klein and BCBG Max Azria, thus establishing a brand system of price from low to high.

Expanding brand influence has also been the direction of PVH's untiring efforts.

Since 1997, PVH has invested $37 million 800 thousand to advertise its brand, and has invested heavily in advertising to help brands enhance market awareness and enhance market competitiveness.

In brand promotion, setting up an international brand image and developing the brand into an international franchise brand has become the long-term goal of the company.

Nowadays, all brands of PVH are sold all over the world. Many brands have gained wide reputation in the world, such as Gant, Arrow and Calvin Klein.

In addition to promoting brand internationalization for private brands, PVH also made use of rich M & A experience to buy some famous brands in the world in order to cooperate with the company's international marketing strategy.

As early as 1995, PVH seized the opportunity to sell its brand to the global market. By acquiring 25% of Pyramid's shares, Pyramid allowed Pyramid to sell PVH's Gant sportswear in the world.

Recently, PVH has already ordered the production of leisure sportswear products for Timberland Co., and is expected to start manufacturing Timberland men's clothing in 2008.

It is said that Timberland clothing will bring us $200 million growth opportunities in PVH in the next 5 years.

Meanwhile, PVH claims that the acquisition of Superba, the scarf and tie manufacturer in the first half of 2007, will play a profitable role in the second half of 2007.

The increasing annual profit margins in 2005 and 2006 show that PVH's brand attractiveness is gradually increasing, and has the ability to operate multiple brands, multi-channel sales management capabilities, and various pricing levels.

Low production cost and raw material purchase

As early as the end of last century, the apparel industry in the United States has developed into a mature field. The industry has reached a consensus that reducing production costs has become a key factor in achieving revenue growth.

The success of clothing industry must include the following factors: low production cost, low cost raw material procurement, product branding, strong management, global business development and flexible distribution system.

PVH has rich experience in traditional clothing operation and management, and has strengthened control over production, raw material procurement and distribution.

PVH has successfully shortened the production cycle and effectively controlled the cost by configuring the IT software.

As one of the few companies in the us that can produce shirts on their own, PVH initially owned some of its own factories, and also produced it through third parties.

Since 1995, PVH has been working on closing its own production line to increase operational efficiency.

In order to continue to reduce costs, PVH collate its US distribution channels and warehousing equipment to close its sweater processing business.

Between 1996 and 1998, PVH reduced its retail business by 19.8%, reducing warehousing and distributors by 5.3%, and processing business by 8.4%.

PVH's early successful cost control measures provide the company with profit guarantee and risk avoidance in the later stage.

For American Apparel

Industry, 2005 is a year of abolition of import quotas, which is full of challenges and turbulence. Enterprises in the retail industry consolidate their market position through a large number of mergers and acquisitions.

The US economy is still in an unstable state. Interest rate rises and rising oil prices bring instability factors, challenging consumer confidence and affecting consumer spending habits.

But with the foresight of the global environment foreseen by the increasing competition, PVH has continued to grow for 05 years.

Traditional industries have new vitality in formal shirts.

Today, PVH's formal shirts continue to maintain the leading position in the country, through the brand MICHAEL Michael Kors, BCBG Max Azria, BCBG Attitude, Sean John, Sean and the launch of the company (launched in 2005) for sale.

With the increasing number of licensed business agreements signed by these brands, PVH has achieved over 32% market share in the sales of formal shirts in department stores.

In the traditional undergarment business, PVH still has several unique brands for different market segments and strategies for using different marketing channels.

Good sales performance proves the correctness of these market strategies.

It is worth mentioning that in the middle of 2005, PVH Van Heusen, the largest formal clothing brand, maintained its sales Championship status in the township area, and Geoffrey Beene realized it.

Brand positive shirts sell the championship in department stores.

Arrow is still a sales champion in the medium price channel, and the market penetration is increasing.

At present, the above three brands represent three of the best selling branded shirts of different prices in the United States.

In addition, the newly launched Donald J. Trump Signature brand series, as well as the CHAPS with high annual output, Sean John, BCGB Max Azria, BCBG Azria, and the brand of the shirts, have provided impetus for the so-called "slow growing formal dress business".

In general, 1/3 of the formal shirts sold in the United States are manufactured by PVH.

Similarly, PVH has established direct sales outlets and marketing agencies in Europe and Canada in order to build an international foundation for the formal shirts business.

These initiatives enable the company to directly control Canada's Van Heusen, ARROW, Geoffrey Beene, IZOD, Donald J. Trump Signature Collection, and the sale of the shirts, and directly participate in the promotion of the sales of the shirts and neckties in the European market.

Sportswear

In 1995, PVH acquired outstanding achievements in sportswear by acquiring existing brands, such as Gant and IZOD, as well as expanding wholesale business.

Today, it depends on a large number of sales under the international and domestic product licensing agreements of the IZOD brand. The whole PVH sportswear camp has achieved rapid growth, especially in 2004, exceeding the company's expectations.

In recent years, the global sales volume of IZOD brand continues to grow, and its new products are also particularly concerned by consumers, especially in the women's clothing market, which has added women's swimwear, underwear products and accessories.

After signing the licensing agreement with PG USA Sportswear, IZOD launched IZOD G men and women golf in 2005.

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In 2004, Calvin Klein's Menswear Better Sportswear sportswear sales point increased from 264 to more than 500, and sales of hot stores increased by square.

Consumers and retailers reacted strongly to the new series of sportswear launched by Calvin Klein in 04/05/06.

It can be said that in this field, the profit space brought by this brand has just begun.

Moreover, the market share of PVH sportswear in high-end department stores and medium priced sales channels increased during 05-06.