Detailed SWOT Analysis of Tommy Hilfiger – One of The World’s Most Valuable Fashion Brand

Updated on: Nov 26, 2021
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In our previous blog, we did an Elaborated SWOT Analysis of the world’s largest integrated manufacturer of fabric, Raymond. Here we will be doing a Detailed SWOT Analysis of Tommy Hilfiger.

Tommy Hilfiger is one of the most valuable fashion brands in the world. It is also one of the biggest US apparel companies.

Tommy Hilfiger has been able to gain such large success in the market. It can still improve its global market standards by implementing the latest digital marketing techniques. As we can see around us that most people have shifted towards digital platforms. Thus it is essential for every business to market its products using digital marketing which will help them to target its customers with ease in the market. If you are eager to know what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us anxious in knowing how Tommy Hilfiger is able to retain a prominent position in the market. To understand that we have given a Detailed SWOT Analysis of Tommy Hilfiger. But before we start with its SWOT Analysis let us learn about Tommy Hilfiger as a Company, its products, competitors, financials, and more.

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About Tommy Hilfiger

 SWOT Analysis of Tommy Hilfiger  | IIDE

Tommy Hilfiger is an American brand that sells attire, frill, and other product. It was set up by the popular creator Thomas Hilfiger in the year 1985. It has its headquarters situated in Amsterdam, Netherlands.

Tommy Hilfiger is a famous brand in relaxed wear and the scope of items sold under the mark incorporates men’s wear, kid’s wear, and ladies wear in classifications like apparel, adornments, eyewear, and other product. They additionally bargain in footwear, sacks, bags, scents, and home goods through a progression of 1400 outlets housed in 90 nations. A private value firm named Apax accomplices gained the organization in the year 2006. 

It is a well-known brand not simply in the USA which is its superb market, Tommy Hilfiger keeps on garnish deals outlines in relaxed wear in business sectors across the world making it the world’s top architect brand. The organization which has brought American culture to the world through its styling and plans enlisted a yearly income of 670 crores USD.


Quick Stats About Tommy Hilfiger
Founder Thomas Hilfiger
Year Founded 1985
Origin Netherlands
No. of Employees 15,000 (2020)
Company Type Subsidiary
Market Cap $1 Billion (2020)
Annual Revenue $3.64 Billion (2020)
Net profit $4.71 Billion (2020)


Products of Tommy Hilfiger

Tommy Hilfiger caters to a large audience in the market thus it needs to provide them with different products to keep them in the trend. Following are some of the products that Tommy Hilfiger provides:

  • Apparel
  • Accessories
  • Fragrances
  • Homewares


Close Competitors of Tommy Hilfiger

Tommy Hilfiger is one of the leading companies in its industry this has to compete with many competitors in the market. Following are some of the competitors for Tommy Hilfiger:

  • Wrangler
  • Lee
  • Levi’s
  • Gas
  • Nike
  • Adidas


Now that we know about the company let us start with the SWOT Analysis of Tommy Hilfiger.


SWOT Analysis of Tommy Hilfiger

The SWOT Analysis of Tommy Hilfiger analyzes the brand by its strengths, weaknesses, opportunities & threats. The strengths and weaknesses are the internal factors of Tommy Hilfiger whereas opportunities and threats are the external factors.

Let us now start with its SWOT Analysis by first looking at the Strengths of Tommy Hilfiger.


Strengths of Tommy Hilfiger

Strength is characterized as what every business does best in its range of activities which can give it a high ground over its rivals. Following are some of the Strengths of Tommy Hilfiger:

  • Learning from Trends – Tommy Hilfiger was never one to start precedents yet the procedure that the aggregate embraced was to see what individuals were wearing and afterward utilize those to make new plans which were motivated by them. It additionally attempted to join key important points from noteworthy style. 
  • Individuals – The achievement of Tommy Hilfiger is as a lot of its kin as their plans. It accepts exceptionally innovative individuals as well as guarantees that the vast majority of their creators are youthful on the most fundamental level. This guarantees that their plans are unique and in vogue.
  • Initiative – The brand is the thing that it is today a direct result of the planning ability, inventive vision, and the never-say pass on the demeanor of its chief Tommy Hilfiger. It got going by altering and exchanging shirts bought from New York in his old neighbourhood. He then, at that point, utilized his solid business keenness to develop the brand from a little series of shops called People’s Place to a global company.
  • Variety of Products – Tommy Hilfiger is a brand that has something for everybody and they bargain in men’s wear, women’s wear, and children’s wear. The brand sells different plans which are extremely American in nature in classifications like active apparel, denim, aromas, home decorations, watches, and so forth There plans which are contemporary, relaxed, and current oblige all age gatherings and all preferences.


Weaknesses of Tommy Hilfiger

Weaknesses are used to refer to areas where the business or the brand needs improvement. Following are some of the weaknesses of Tommy Hilfiger:          

  • Price – The apparel and other product from Tommy Hilfiger are evaluated at a higher cost than expected and the brand may not be reasonable to the majority. This makes them center more around the higher pay portion. 
  • Supporting the brand picture – Tommy Hilfiger is constantly known as a peculiar and extraordinary American brand. The organization has consistently publicized in a way wherein this picture has been upheld and this has assumed a basic part in the development of the brand. Indeed, even today the organization needs to contribute a considerable amount of cash to support this picture. 
  • Low infiltration in economy portions – Tommy Hilfiger has been an expensive brand and accordingly it has consistently been a favorable decision of the greater pay gatherings. The infiltration of the brand in a lower pay portion is poor and accordingly, the organization has low edges.


Opportunities for Tommy Hilfiger

Opportunities refer to those avenues in the environment that surrounds the business, which it can capitalize to increase its returns. Following are some of the opportunities for Tommy Hilfiger:

  1. Changing customer preferences – Customers are clear with regards to their necessities and hence there has been a lot of specialty classes that have risen out of explicit prerequisites. For instance, in one class like pants, there are countless sub-classifications like skin fit, Loose fit, tailor-cut, and can among others. The presence of these classes is generally new sections for brands like Tommy.
  2. Changing Technology Landscape – Machine learning and Artificial Intelligence blast is changing the innovation scene that Hilfiger Tommy works in. As indicated by Raffaella Sadun, Hanoch Feit, Vaibhav Gujral, Gerard Zouein, Hilfiger Tommy can utilize these advancements in further developing efficiencies, bringing down costs, and changing cycles. 
  3. E-Commerce and Social Media Oriented Business Models – E-trade plan of action can assist Hilfiger Tommy with tieing up with nearby providers and coordinating suppliers in the worldwide market. Online media development can assist it with diminishing the expense of entering a new market and coming to clients at a fundamentally lower showcasing spending plan. It can likewise prompt publicly supporting different administrations and purchasers arranged to promote dependent on the information and buy conduct.
  4. Increasing Standardization – Hilfiger Tommy can use this pattern to lessen the number of contributions on the lookout and spotlight the advertising endeavors on just the best items. 


Threats to Tommy Hilfiger

Threats are the external factors that stop the growth of Tommy Hilfiger. These need to be looked into and take proper precautionary measures to prevent them. Following are some of the Threats to Tommy Hilfiger:

  1. US-China Trade Relations – Hilfiger Tommy has zeroed in on China for its next period of development. Be that as it may, there is developing pressure between US-China exchange relations and it can prompt protectionism, more contact into the global exchange, increasing costs both as far as work cost and cost of cooperating.
  2. Increasing costs due to ecological guidelines – Hilfiger Tommy needs to manage these expenses as governments are attempting to collect higher natural duties to advance cleaner choices. For Hilfiger Tommy, it might result in higher coordinations costs and higher bundling costs. 
  3. Increasing bartering force of purchasers – Over the years the haggling force of clients of Hilfiger Tommy has expanded fundamentally that is coming down on costs. The organization can seek after flat joining to solidify and bring efficiencies yet it will be a momentary help. As per Raffaella Sadun, Hanoch Feit, Vaibhav Gujral, Gerard Zouein, Hilfiger Tommy needs essential changes to the plan of action instead of surface-level changes.


With this, we have reached the end of the SWOT Analysis of Tommy Hilfiger. This analysis helps it to give an overall idea about the company in the market and help it to create better strategies to improve.

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On the study of the SWOT Analysis of Tommy Hilfiger, we have known that it is one of the most valuable fashion brands in the world. It has been learning from the different trends and has a wide variety of products in the market. The changing technology landscape and changing customer preferences create an opportunity for the company to grow in the market. But even with such advantages, it has some flaws in the market with stop its growth.

It uses a very high pricing strategy and due to the low inflation in the economy, it is difficult for the customers to buy the products. The US-China trade relationship and increasing costs due to ecological guidelines create a threat to the company. However, it can eliminate some of the negative factors with the use of advanced digital marketing. As we can see most people nowadays are on social media thus it is essential for every company to have a digital presence through digital marketing. This will help them to target its customers with ease. If you are interested in upskilling and learning, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

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