Tommy Hilfiger : Fashion Branding Strategies in USA and China

ABSTRACT

This article carrie out a case study of American fashion brand: Tommy Hilfiger and compared the differences of its brand strategies between the United States and China. This article analyzed its brand personality through SWOT Analysis Model. It also made use of the OCEAN Five-factors Personality Traits Model and Schwartz Values Analysis to compare the cultural characteristics of the United States and China as well as the feature of consumer behaviour. This article evaluated Tommy Hilfiger’s branding strategies in both two countries, and provided with suggestions for its future development.

KEY WORDS: Tommy Hilfiger, Culture Dimensions, SWOT, OCEAN Personality Traits, Schwartz Values, Branding Strategy 

1.Introduction

As one of the world’s leading designer lifestyle brand, Tommy Hilfiger shares a large market in fashion industry of which products sold under the brand is women’s wear, men’s wear, make up, accessories , fragrance and etc.(Bhasin, 2019). By 2019, Tommy Hilfiger has approximately 1400 outlets in 90 countries around the world(ISSUU, 2018). Based on its history, market share, marketing strategies and fashion influence, this article selects this brand to be research object.

The United States and China are my research subjects in this article.Date back to its history, Tommy Hilfiger Cooperation was established by American designer Thomas Hilfiger in New York in 1985 of which design works were supported by typical American culture(Bhasin, 2019). Hence this article takes Tommy Hilfiger’s market analysis in the United States as one of my research subjects.

As Tommy Hilfiger developing, it has a large-scale distribution network in more than 100 countries(Bhasin, 2019), and in recent 10 years, it began to focus marketing efforts on developing the Asian market. And the centre of Asian market is China because of the large population and ability of consumption. In terms if these factors, this report select China as the another research subject to form comparison.

In this article, firstly it will apply SWOT Analysis Method to inspect the global situation and position of Tommy Hilfiger. After this, it is going to focus on analyzing culture differences, target market, brand position and brand identity of two research subjects: the United States and China. Ultimately, this article will summarize Tommy Hilfiger’s Brand Strategies in these two countries, draw a general conclusion of this research and explore appropriate recommendations for its further market development. 

2.Fashion Brand global SWOT 

According to figure 1, there are six main strengths need to be further analysis:

1) Strong Recognization 

From the moment Tommy Hilfiger was created, “classic American cool with a preppy twist” was set as its brand position(Market Realist, 2015). The symbol of the flag of the shape is famous for its "all-American" design and overt nods to the "upper class" or the “elite"(Famous Logos, 2019). The founder Thomas Hilfiger designed the logo in a aesthetic and clean form based on the colour of America flag: red, white and blue which gives the public a strong impression(Famous Logos, 2019).Its design works are as well as based on American Culture: concise and valid with a strong sense of urban youth. It also has a wide range of products, including perfume, household goods, shoes etc. which means that it is able to appear more in people's consumption horizon.These factors distinguish Tommy Hilfiger with its competitors.

2) Global Distribution Network

Tommy Hilfiger has an enormous distribution network to guarantee its products are accessible to the target consumers in time(Williamson 2018). According to the statistics, it owns over 2000 retail stores in 100 countries and numbers of outlets in each state in USA(global.tommy.com, 2019).

3) “See Now Buy Now”

Tommy Hilfiger adopts some marketing strategies to accelerate its commodity circulation. Fashion buyers and dealers can book their orders directly from the run way rather than making a purchase after six months traditionally(ISSUU,2018).

4) Cost Control

This brand benefits from a “Low Cost Structure” which support it to produce commodities at a minimum cost such as manufacturing in areas where labor is cheaper, adopting “Cloud Warehouse(It is a kind of warehouse that you can store your products with other companies)” to reduce the costs of transportation etc. Hence the marketing team is able to put an affordable price on the products(Williamson, 2018).

5) Products Portfolio

Tommy Hilfiger has a wide range of product categories(Williamson, 2018). Not only does it have women’s wear, men’s wear, and kids’ wear, but only it has some ranges are

unique which are not offered by its competitors like furniture, watches as well as cosmetics(Bhasin, 2019).

6) Celebrity Endorsements

Celebrity endorsement affects advertising appeal and advertising effect significantly and positively(Wiley Online Library, 2012).Tommy Hilfiger currently achieved a massive sales growth after the collaboration with super model: Gigi Hadid whose fans population is over 30 million(Bhasin, 2019). In 2017, Chinese actor Yu Wenle who has more than 17.5 million fans served as Tommy Hilfiger’s brand ambassador in China, helping it reach a triple-digit sales growth in Asian regional(JingDaily, 2017).

Based on figure 1, there are two obvious weakness need to be further discussed:

1) Strong Competitors On Different Segments

Tommy Hilfiger manufactures a wide range of products, including perfume, watches and home furnishing, etc. However, its market segment makes it face more competition from established brands which has lead to its high cost of brand switching(Mba Skool, 2019). For instance, its competitor:Ralph Lauren(Owler, 2019) also competes in the perfume field.Ralph Lauren developed the segment of perfume at a earlier time than Tommy Hilfiger, no matter of quality, pricing or sales record in 2019(locus assignment, 2019), it got a better situation than Tommy Hilfiger.

2) No Consumers Reviews On Items

Online reviews play an important role if consumption behavior because they have transferred as a quality reference for consumers around the world(Planet Marketing, 2019).According to research data, before people make a decision of purchase, ninety percent of them will check the online reviews about the items and eighty-eight percent people say they trust the reviews. However, Throughout Tommy Hilfiger’s official website and various shopping platforms, there is no area for the function to write down or check the reviews which may influence the brand loyalty.

There are two main opportunities need to be further discussed : 1) Change Consumers’ Preference

Customers are well aware of their needs hence so new segmentation categories are generated from specific requirements. Such as jacket, there are various of sub- categories like: water proof, skin fit, bucket, reflective jacket etc. Above categories are all new segments for brands like Tommy Hilfiger(Bhasin, 2019).

2) E-commerce

With the development of internet and mobile data, more and more people around the world use online shopping. Not only can it save the cost of renting physical stores but also get more interact with customers(Williamson, 2018).The fact proves that New trends and sales growth have emerged in the E-commerce industry.Tommy Hilfiger can generate revenue by opening online stores and selling through them to develop new business opportunities.

Based on figure 1, there are three points of threats deserved deep thinking:

1) Intense Competition

Tommy Hilfiger’s main business competitors are Ralph Lauren, Wrangler, Lee, Levis, United Colors of Benetton etc. Some of them put downward of products’ price which will take more market share if Tommy Hilfiger doesn’t adjust its pricing system.At the same time “New technological developments by a few competitors within the industry pose a threat to Tommy Hilfiger as customer attracted to this new technology can be lost to competitors, decreasing Tommy Hilfiger’s overall market share too”(Williamson, 2018).

2)Threat Of New Entrants

A number of new companies have entered fashion industry and acquired market share by taking from existed companies’. This is a threat to Tommy Hilfiger because it has risk of losing targeted customers to these new entrants(Williamson, 2018).

3) Bargaining From Suppliers

As the suppliers become less and less, the bargaining power of suppliers increases highly step by step which means Tommy Hilfiger's input costs could rise up(locus assignment, 2019).

In conclusion, according to the SWOT analysis of Tommy Hilfiger, it can be seen that it has obvious advantages and opportunities in brand image, product quality and service, but there is a lot of room for improvement in Internet marketing, technical means update and cooperation with its suppliers. 

3.Tommy Hilfiger In USA

3.1 Cultural values and dimensions

The concept of a culture dimension is based on fundamental themes that each culture must deal with(casework.eu,2019). Sociologists devote to define cultural dimensions to make diverse cultures comparable(casework.eu,2019). Hence, dimensions benefits analysing culture differences and what consequence they bring back to the different societies.

This secession is based on Hofstede-insight to compare the culture differences between the United States and China, and analyse the result with the support of the research model of Schwartz values or OCEAN traits.

3.1.1 Hofstede-insight Analysis of USA 

It obvious in the figure 2 that : Power Distance, Individualism and Long term Orientation, these three parts, the United States is clearly different from China. The following is a detailed analysis. 

1) Power Distance

People are born to be unequal because the fact that everyone is unique. One of the most obvious aspects of inequality is the degree of power that each person can exert over others. This statistics of this dimension express the culture attitude towards these unequal rights among us.And Power distance is defined as the degree to which weaker members of a national institution or organization expect and accept an uneven distribution of power(Hofstede-insight). From Figure 2, the United States gets 40/100 in Power Distance which means people's acceptance of unfair rights is low relatively. In the United States, people are taught to respect diversity and the cultivation of muti- characters and since childhood, people have been implanted with the concept that “Everyone has equal rights.” which have great influence on the scores of Power Distance(scholastic.com,2019). For consumption behaviour, study shows countries with low power-distance show a stronger preference for premium priced products compared to standard brands than countries with high score of power-distance(Kim and Zhang, 2011).

2) Individualism

Individualism is a social concept that advocates individual freedom, creativity and self- reliance(centerofindividualism.org).The fundamental problem that this dimension addresses is the degree of interdependence that society maintains among its members. It depends on whether people's self-image is defined by "I" or "we". In an individualistic society, people can only take care of themselves and their immediate family. In a collectivist society, people belong to "groups" and are looked after in return for unquestioning loyalty(Hofstede-insight).

The score of Power Distance and the score of Individualism is logically opposite which reflects in following examples: In American government departments, subordinates have direct access to their superiors, information is shared among departments, and discussions in meetings are direct and equal. Society is loosely bound and people are expected to look after themselves and their immediate family and not rely on the support of the authorities. Americans are used to doing business with or interacting with people they don't know. As a result, Americans do not contact potential partners in order to obtain or seek information. In the business world, employees are expected to be self- reliant and show initiative(Hofstede-insight). The high score of Individualism means consumers will choose the items they like instead of blindly following the advice of others or following the current trend.

3) Long term Orientation

This dimension describes how each society maintains some kind of connection with its past in response to current and future challenges, and the priorities society places on the two existential goals are different(Hofstede-insight). The countries who score low on this dimension are more likely to keep time-honored traditions while observing social change with skepticism. Those with high marks, take a more empirical approach: they encourage thrift and effort in modern education to get prepared for the future(Hofstede- insight).The United States gets lower score on this dimension because Americans tend to analyze new information to see if it is correct. Hence majority of Americans have a strong ability to distinguish “good” and “evil” which exacerbates social polarisation involving some crimes such as drugs, abortion and weapons.In the working area, America corporation measures staffs performance on a short-term and publishes income statements quarterly. It also drives individuals to pay more effort for quick results in the workplace(Hofstede-insight).

3.1.2 Schwartz Values Analysis of USA

Schwartz Values Theory defines ten different value orientations that are accepted by people in all cultures and points to the conflict and consistent dynamic relationship between these values.It aims to be a unified theory of the field of human motivation, a way of organizing the different needs, motivations, and goals proposed by other theories(Schwartz, 2006). The 10 value orientations are: Self-Direction,Stimulation,Hedonism, Achievement, Power, Security, Conformity, Tradition, Benevolence, and Universalism. Besides the dimensions which have been mentioned in Hofstede, the following is main values analysis of the United States(Figure 3) : 

The strong performance of the American people in these three parts indicates that they are more self-direction in their consumption behaviours and will make choices based on their own experience and theoretical basis. At the same time, their strong sense of achievement and Stimulation will make them pay effort to afford high-end products and explore new products. 

3.2 Target market

This section will analyse Tommy Hilfiger’s target market in the United States from demographic(Figure 4) and psychographic variables(Figure 5).

3.2.1 Demographic Variables 

3.2.2 OCEAN Model for psychographic variables

“The five-factor model of personality is a hierarchical organisation of personality traits in terms of five basic dimensions: Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience. ”(McCrae and John, 1992). The one of biggest applications of the OCEAN model is testing the individual’s personality influence on consumption behaviours. Every industry want to obtain universal rules through five- factor model of personality sample survey of customers, so as to adjust their product structures and achieve precise sales according to consumers' preferences.The following is an OCEAN analysis of target consumers in Tommy Hilfiger’s US market(Figure 5): 

Through OCEAN analysis of Tommy Hilfiger's target consumers in the United States, this group’s personality is more specific. They are middle-class or high-class with stable salaries, have cheerful personalities and social confidence. They treat people and surrounding things with high trust and loyalty, with a rich mood but can maintain optimistic nature.Hence they pay attention to the current trend in different industry, and are willing to try new fashion styles(ISSUU, 2019). 

3.3 Brand position

3.3.1 Product Positing Map

To compare their products or services with those of their market competitors, marketers use a visual tool to make comparison: Product Positing Map. According to American fashion market, this map is divided into two dimensions: fashion and price，intuitively reflecting the gap in the dimensions of each brand. And Tommy Hilfiger established a clear position for itself among its main competitors(Figure 6) : 

The working rule of Product Positing Map is that the closer the brands are in the straight line on the Map, the more fierce of competition between these brands will be. As is shown on map, Ralph Lauren is Tommy Hilfiger's biggest competitor, and they have consistency not only in the product categories but also in the pricing system. However, Tommy Hilfiger’s product designs are relatively young and diversified, and it has a special two-tier bran: Tommy Jeans aimed at the young market(vogue.com,2019). Ralph Lauren's designs focus more on elegance and quality, with a relatively homogenous design style(vogue.com,2019). 

3.3.2 Emotional and rational brand position of Tommy Hilfiger 

3.4 Brand identity and brand image

Tommy Hilfiger has high-level performance in marketing as one of the leading designer brands. It has a wide range of products, giving the brand a high degree of brand recognition.According to the analysis of 3.2 in this article, in the United States, because its target consumers is a group with fixed characteristics between 25 and 40 years old, Tommy Hilfiger’s brand image precisely locates this group through advertising its core brand culture feature: American dream, thus designing products and undertake precise marketing(Bhasin, 2019). As born in New York and taking deep research on American culture, the gap between Tommy Hilfiger brand identity is inconspicuous and its annual sales in the United States is still on the top among other countries in the world(Bhasin, 2019). 

4.Tommy Hilfiger In China

4.1 Cultural values and dimensions

4.1.1 Hofstede-insight Analysis of China 

1) Power Distance

As is been defined in 3.1.1(Page 10), Power distance refers to people's acceptance of power inequality. And China ranks high in this dimension at score of 80. In the whole social system, the relationship between the superior and the subordinate tends to be polarised.Individuals, influenced by formal authority and sanctions, are generally optimistic about leadership and initiative. And a social common value is one should not have ambition beyond one's position(Hofstede-insight).This kind of value reflects to the consumption behaviour, will make the behaviour more conformity. This means that widespread advertising or celebrity influence can have a positive effect on sales.

2) Individualism

China is under a highly collectivist culture in which people struggle for the benefit of the collective, not necessarily for themselves(As is shown in the figure 8, China gets 20/100). Internal team considerations affect hiring and promotion, and people who is close to the team, such as family members, could get preferential treatment. The relationship with colleagues is cooperative to the internal group, while indifferent or even

hostile to the external group. Relationship-bonds are more important than assignments and companies(Hofstede-insight).

3) Long Term Orientation

China scores 87 in this dimension, which means it is under a very pragmatic culture. In a pragmatist-oriented society, truth is believed to be largely determined by context, circumstances, and time. They exhibit an ability to adapt to changing circumstances, a strong propensity to save and invest, frugality, and perseverance to achieve results.

4.1.2 OCEAN Model Analysis of China 

4.2 Target market

This section will analyse Tommy Hilfiger’s target market in China from demographic(Figure 10) and psychographic variables(Figure 11).

4.2.1 Demographic Variables 

According to the above (Figure 10), in the age range, Tommy Hilfiger and Hilfiger Tailor have both decreased by 5 years in the upper age limit in the Chinese target market. This is due to the cultural differences between China and the west countries. In the Chinese social structure, family relationships are relatively close, and parents and immediate children have a strong relationship in wealth and social status. As a result, parents will accumulate wealth for their children and weaken themselves’ material needs(Cheung et al. 2001). The current average rate of giving birth to children in China is 25 years old(China Daily, 2019), so people aged 35 to 40 years old basically have less demand for brands like the Tommy Hilfiger category. 

4.2.2 OCEAN Model for psychographic variables 

Through OCEAN analysis of Tommy Hilfiger's target consumers in China, this group’s personality is more lively. They are the backbone of the workplace with confidence, energy and have strong working ability. They dare to challenge new things and are active to touch diverse world cultures.

4.3 Brand position

4.3.1 Product Positing Map

According to Chinese fashion market, this map is divided into two dimensions: fashion and price(Figure 12). Due to the large number of Chinese independent fashion brands and the large number of imported overseas brands, Tommy Hilfiger’s positioning is relatively vague when facing the huge market and competitors. 

Follow the Product Positing Map, it proves that Tommy Hilfiger’s strongest competitor in China is I.T and Calvin Klein. I.T is a Hong Kong fashion brand and its product categories include: men's wear, women's wear, accessories, shoes, etc. Its target customers are between 20 and 45 years old. I.T’s products are designed with the casual urban style(baike.baidu.com). Its target marketing and target customers are very similar to Tommy Hilfiger’s. It is as well as the only Chinese brand among Tommy Hilfiger’s major competitors in the Chinese market.

Another competitor of Tommy Hilfiger is Calvin Klein. In China, they both belong to PVH company for business management, and their brand characteristic are similar. Therefore, the two brands share a consistent pricing system in China. However, Tommy Hilfiger’s product categories are more extensive, and fashion design styles are more diversified and younger. In the future its development in the Chinese market may surpass Calvin Klein’s position(voguebusiness.com)

4.3.2 Emotional and rational brand position of Tommy Hilfiger

The following table(Figure 13) will analyse Tommy Hilfiger’s brand values for Chinese consumers : 

4.4 Brand identity and brand image

Brand identity is how a brand expects the consumers to perceive your product or brand and based on the content of 4.1 and 4.2, Tommy Hilfiger’s main brand identity traits are following:

1) Strong identified logo with blue, red and white three main colours

2) Special packages with consistent visual of main colours

3) A brand that can prove your unique taste

4) A brand that can demonstrate your social status and wealth level

5) Can provide the best after-sales service

Brand image is the perception of the product or brand by consumers. According to 4.1 and 4.3, the brand image traits are proved by following points:

1) A place where consumers can buy unique American Style apparels

2) A brand whose products can show consumers’ social status

3) A brand of which garments can give people a sense of youth

4) Products are too expensive to afford

As can be seen from Figure 10, Tommy Hilfiger’s positioning in the United States and in the Chinese market is different. In China, it targets the upper-income groups. However, according to the analysis of Chinese culture, Chinese public aesthetics tend to converge, and high-income people will purchase the products sought after by society like high-end luxury brand to flaunt their wealth, instead of boldly choosing their own preferences or trying new things and people who with these characteristics have relatively low income with younger age. Tommy Hilfiger needs to adjust the price or target market according to the expanding demand of the brand. 

5. Brand Stategies

5.1 Product Branding

Definition: Product branding is design or a sign that identifies and distinguishes from others(Simon Page, 2019). It puts a strong brand effect on the product with spectacular colors, designs and logos(Simon Page, 2019). It is also a strategy that gives a meaning of a unique set of marketing elements to differentiate a given product(My Accounting Course, 2019). In addition, it is an activity that makes it clear how the product’s image is communicated to its customers(My Accounting Course, 2019). The logo of Tommy Hilfiger adopts the classic and impressive color combination: red ,blue and white which reminds the public of the flag of America. And the minimalist mark as well as cleverly represent the letter “H”(Famous Logos, 2019).The designs of the color and the logo shape make Tommy Hilfiger stand out from its competitors. 

Supreme is one of the most recognisable brands in fashion industry currently which successfully take advantage of product branding. Its symbolised logo is featured with bold white letters with bright red background to deliver a message of rebellious and anti- capitalist with resonates(Figure 14) with its original targeted consumers: street skaters(Logo My Way, 2018). As the brand developed, Supreme expanded its target market including hip-pop, rock and roll and pop circle. And recent years, its logo and typical products have been heavily represented in popular culture. A wild rang of celebrities to create pictures showing “Supreme” logo on their apparels such as Justin Bieber(Figure 15), Lady Gaga, Michael Jordan and NFL(Logo My Way, 2018). 

The famous beauty brand: Dove ever produced a limited edition line called “Real Beauty Bottles”(Figure 16). The packagings of these bottles were designed into different kinds of shapes like woman’s body(Visual Fizz, 2018). The idea was to demonstrate the power of female physical diversity. But the reality is, they made the consumers more self-aware than ever by providing seven different shapes for consumers to choose from, and forcing women to choose the same shape of bottle they felt embarrassed about(Visual Fizz, 2018).The lesson is: Don’t just focus on production outlook innovation, and think about why customers choose this product when making product branding strategies.

5.2 Line Branding

Definition: Line branding is a strategy concept that combining complementary products together to achieve a new complete whole and they are one common concept(Oney Atters, 2020). For instance, Jo Malone London establishes a shared elegant smelling concept by offering products as complementary which includes , fragrance shower gel, scented candle, body lotion, fragrance shampoo etc. This brand recognizes its value and brand concept which attracts to a clear targeted market segment.Those complementary products are closely related to brand concepts or applications(Oney Atters, 2020).

Advantages:

Ralph Lauren is a typical successes example of line branding. It began at forty years age targeted at ties market and nowadays its products include jeans wear, shoes, children’s wear, eyewear, underwear, accessories, furs, luggage etc. Ralph Lauren hasn’t suffered brand image dilution because all these complementary products are designed to represent one brand image:“American Aristocrat” with good quality(UK Essay, 2017).

Disadvantages:

However consumers not always response to line branding strategies. In the early of 1980, Levi’s planed to do line branding by producing a tailored classics line of men’s suits. It failed at last resulting from difficulties in connection with the parent brand, lack of similarity and familiarity, and conveyed inconsistent information to costumers(Ashok Gopal 2016 cited in UK Essay,2017). 

5.3 Range Branding

Definition: Range branding allows brands to expand to complementary products in relatively nearby areas, supporting the function of major products. And the expertises in certain area in the company are used to create different categories of products which share the same commitments and brand capabilities. A single brand concept organizes products together(Oney Atters, 2020). For example, the American fashion brand DKNY was not just target on its original line: women’s wear market. After 1990’s it developed accessories, underwear and household production lines which support the product diversity of DKNY.

Advantages:

Armani is regarded as one of the most diverse brands in fashion industry.Not only does it range from Haute Couture Armani Prive to fast fashion Armani Exchange, but also it provides everything a luxury lifestyle the public need, from sweets and flowers to hotels and restaurants. Consumers are delighted that they can afford Armani qualified products from different ways(Stankeviciute and Hoffmann, 2010). 

Disadvantages:

Samsonite is a luxury brand of making high-quality luggage, business bag and suitcase(Figure 17). Based on its products’ characteristic of elegant, it developed a brand new unrelated product line: Outerwear(Figure 17). However the dismal sales on these coats proved that entering clothing industry had diminished the brand value(Hub Spot, 2019) because the new category was not strongly related to the brand concept and closely connected with the parent brand’s nature.

5.4 Two-tier Branding

Definition: Two-tier branding is an approach which combines corporation of the reputation of the company and individual products and makes all of them promoted and highlighted. This is always the company’s first step to shift from a corporate brand to a product brand(China Daily European Weekly, 2011) which means the parent brand targets two segments of the market at the same time.Two-tier branding is especially beneficial for the companies that want to broaden the appeal of their customers and it also provides the opportunity to gain new market while remaining the loyalty to maintain the core consumer base(audienti.com, 2020). In 2002, the shoes brand Massaro established as one of Chanel’s two-tier subsidiary, it not only satisfied the needs of Chanel’s customers base in shoes, but also helps Chanel to set up a new image as luxury shoes brand(businessoffashion.com, 2020). 

Advantage:

Ralph Lauren is a typical example who has excellent insight into a business that keeps the same crucial focus on a unique value on each extension. And those sub-brands all have the vision of parent brand. Ralph Lauren Polo has the best sales performance among them which is a casual collection based on the symbolic Ralph Lauren polo T- shirt(Fabrikbrands, 2019). During 2012-2019, its revenue stayed above 6 billions(Figure 18).

 Disadvantage:

As a global brand, Victoria’s Secret is famous for its over sexual brand image and fantastic lacy lingerie(Business Insider, 2016).At the same time, it has a sub-brand

targeting for young consumers: PINK. However the sales of PINK has been unable to drive or save the sales of its parent brand, Victoria’s Secret. In 2018, with it sales falling dramatically meant that any Pink path ahead for Victoria’s Secret would be difficult(Slate Magazine, 2018).Some experts analyzed that PINK’s failure was due to the messy and poor quality of its products, which ranges from youth lingerie, swimming suits, pyjamas, casual suits and accessories. Instead of helping Victoria’s Secret achieve a breakthrough in sales, the brand image of VS is blurred. In addition, PINK modified VS to adopt models with unattainable body shapes to advertise, creating an uncomfortable sense of contact among its target consumers(Slate Magazine, 2018).

5.5 Corporate Branding

Definition: The corporate branding(Figure 19) is a process counted in impressing the consumers with a special name and brand image through advertising with a consistent concept(biz fluent, 2018). And this branding strategy is made use of creating and maintaining a good brand reputation which includes product quality, services, brand culture and social responsibility(Simon Page, 2019). 

Advantage:

Unilever is a beauty company which provides beauty products for both men and women: 1.Dove: Producing personal care products includes antiperspirants and deodorants, body washes, various lotions, facial and hair care products(Rathod, 2017).

2.Lux: Manufacturing a range of personal hygiene related products which includes shower gels, shampoos, conditioners, soaps and perfumes(Rathod, 2017).

3.Axe: Producing deodorants, shower gels, body wash and conditioners for male grooming(Rathod, 2017).

These three product categories within the same name of Unilever are interdependent upon each other success of one product will give a boost to other products as well(Marketing Tutor, 2018). 

Disadvantage:

In 2018, Dolce & Gabbana would hold a large-scale fashion show at the Shanghai Expo Center on November 21, which included catwalk, music, dance etc. to build corporate branding in China. It also produced a special promotional film that combined traditional Chinese culture with the classic Italian diet. The model in the video used chopsticks to eat Italian food.However, because of the arrogant tone of the voice and the exaggerated expression of the model in the video(Figure 20), netizens questioned its suspicion of discriminating against traditional Chinese culture(haijiahao.com, 2018). Approximately 90% invited Chinese celebrities quit from the event which lead to the cancellation of the event. And since 2018, Dolce & Gabbana’s sales performance in China had fallen to a trough(baike.baidu.com).

5.6 Umbrella Branding

Definition: Umbrella branding is a strategy which means selling a group of related products under a same brand’s name(Marketing Tutor, 2018).The basic idea behind this brand strategy is to improve the marketability of the product and follow a psychological concept: whenever a product carries the same brand name, it will have the same product characteristics as other brands within the umbrella(Marketing Tutor, 2018).

Advantage:

Virgin group typically adopts umbrella branding strategy which has achieved much success.Virgin group is a famous brand with leading international investment activities and numerous business areas. Virgin group owns umbrella brands in diverse industries such as:virgin Atlantic, virgin holidays, virgin green fund, virgin mobile etc(Figure21). 

Disadvantage:

The majority disadvantage of umbrella branding is if one brand which is within the umbrella doesn’t meet the consumers’ expectation, the other products under the same brand are also probably to suffer. This may cause the company being put into a negative brand equity(Wikipedia cited in Jeanine 2008).

5.7 Co-branding

Co-branding is an effective branding that links the brands of two or more companies with one specific product or service(Simon Page, 2019). It can be regarded as a marketing partnership between several brands which can share the success. This strategy benefits companies to increase reputation and profit as well as breaking into new markets(Simon Page, 2019). Like the co-branding of NIKE and IPod, they designed physical measuring instruments in the running shoes, which can measure the basic data and human functions during exercise, and then the data can be directly transmitted to the mobile phone through the IPod. This co-branding product not only transfer the traditional sports industry to an automatic one, but also develop electronic technology into human health and big data(Brand Marketing Blog, 2019). 

Advantage:

Everyone who has the conscious about fashion knows Alexander Wang and H&M are not the same level fashion brand whatever in terms of product quality or brand image. Hence these two brand’s pricing system are obvious different. However this discrepancy in pricing is exactly why the two brands decided to do co-branding together(Figure 22). H&M has traditionally worked with luxury fashion brands to offer exclusive co-branding products for a limited time to support its brand positioning(Hub Spot, 2019).

In exchange, these luxury brand — like Alexander Wang can present their brands to a new generation of potential consumers who will increasingly crave more of the high-end production(Hub Spot cited in Forbes Magazine, 2019).

Disadvantage:

The very fashionable toy company ended its cop-branding strategy with Dutch oil company Shell(Urbo, 2017). Though for decades years, their partnership has achieved enormous sals and success, Greenpeace Organisation has produced a video to blame this business cooperation because encouraging children to play with toys with oil labels is a perverse incentive to drill for oil which will cause environment damages. The negative impact of Shell will affect the brand image of Lego through co-branding. Hence this strategy ended in 2011(Urbo, 2017).

6.Tommy Hilfiger’s Branding Strategies In USA And China

6.1 Tommy Hilfiger’s branding strategies in USA 

6.2 Tommy Hilfiger’s branding strategies in China 

7.Conclusions and Recommendations

7.1 Conclusions

For Tommy Hilfiger in the United States, it uses geographical and cultural advantages to fully research the market, identify industry competitors, and accurately position itself. Tommy Hilfiger’s products combine the cultural and emotional needs of the American people with simple-beautiful but representative designs.The gap between brand identity and brand image is not obvious.However, as economic development leads to the changes of consumer preferences and aesthetic preferences, Tommy Hilfiger’s brand identity is possible to be adjusted based on these changes.

With the success of the cooperation with Gigi Hardid, and the sales growth of Tommy Jeans in recent years. Co-branding and 2-Tier branding highlight the potential and advantages in Tommy Hilfiger’s branding strategies.

In China, Tommy Hilfiger still has great potential to occupy the market. Because of the unfamiliarity with Chinese culture and consumers psychology, the gap between its brand identity and brand image leads to insufficient driving force for consumption behaviour. Hence Chinese consumers just get a vogue marketing positioning of Tommy Hilfiger. In addition the huge number of competitors in the market makes Tommy Hilfiger did not fully enter the mainstream vision of Chinese consumers. Nevertheless, from 2017 to 2018, the co-branding of actor Yu Wenle still has a significant effect in Chinese market, more and more people take the initiative to learn about this brand. In addition, once Tommy Hilfiger successfully establishes its brand position: luxury brand, the corporate branding strategies will be fast responded by Chinese consumers.

7.2 Recommendations

For American markets there are following points to improve its brand image and brand strategies:

1) Develop technology or other highlights to attract more consumers.

2) Improve after sales service

3) Increased collaboration with celebrities

4) Enhance the image power of 2-tier brand and broaden target consumers

For Chinese markets there are following points to improve its brand image and brand strategies:

1) Adjust the status of the 2 Tier brand and parent brand, Tommy Jeans can attract young consumers faster to occupy the market first

2) Enhanced cooperation with local celebrities to creative fashion events

3) Under the circumstances of recognising the Chinese economy, appropriately adjust the pricing system

4) Provide personalised recommendations and services in stores

5) Strengthen cooperation with local boutiques and distributors and expand sales channels

6) Improve online product evaluation system

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