Calvin Klein Market study of US operations
"Calvin Klein's love for fashion was seen at a very early age when he started taking interest in sketching and sewing. Born on 19 November 1942, after graduating from the Fashion Institute of Technology in New York, he began working as a trainee making coats in European style of fashion. However, he was not happy with the trend of copying the European fashion, which most Americans followed, and so he came up with the idea of inventing original fashion ideas for the American people.
He started his company in the year 1968 after taking a loan amount of $10,000 from his friend and named it ?Calvin Klein Ltd'. Success came knocking at his doors and he bagged the coat order worth of $50,000 of from Bonwit Teller, a large departmental store. His name soon became famous. Soon, apart from designing coats he brought about a new line of sportswear for women. It was affordable and had "The Calvin Klein Look".
His name appeared in the fashion magazine Vogue in the year 1969. He was awarded the Coty award by the fashion press consecutively for the years 1973, 1974, and 1975. He manufactured scarves, belts, shoes, furs and sunglasses with annual revenues of $30 million by the year 1977. The year 1981 saw a steep rise in his annual income with new license for cosmetics and jeans, which estimated to about $8.5 million a year (according to Fortune magazine report)
Nevertheless, the companies foray into the perfume industry proved to be a failure with huge losses. It then began its undergarments business in the year 1980, introducing a range of boxer shorts (for men/women), which again turned out to be a success churning out $70 million a year. His clothes were now available worldwide with 12,000 stores in the US and countries like UK, Germany, Greece, Brazil, Croatia, Egypt, India, Australia and New Zealand, increasing Klein's annual income to $12 million.
However, the company became bankrupt in the year 1992 due to some financial issues and unsatisfactory sale. Finally, in the year 2002 the company was brought by Phillips Van Heusen Corp. The recent brands under CK are Calvin Klein Collection, Calvin Klein Sport, Calvin Klein Home, Calvin Klein Jeans, The Khaki Collection and Calvin Klein Underwear to name a few.
Today, clothes designed by Calvin Klein is preferred and liked by many Hollywood Actors. Gwyneth Paltrow, Sandra Bullock, and Julia Roberts are to name a few in the list.