"Calvin Klein was born on 19th November, 1942. His love for fashion was inherent as he started initially with interest in sketching and sewing at a very young age. After his graduation from the Fashion Institute of Technology in New York, he began working under Dan Millstein. He had worked for various stores before he came up with the idea of establishing his own company.
He established his company in the year 1968 and named it after his own. He earned his name by designing coats and with the passage of time; he forayed into affordable sportswear for women; his next big leap was the Calvin Klein jeans in the year 1980, which showed the company its way to unmatched triumph, it was more of a craze to own a Calvin Klein jeans among the people. Success was knocking at his door as he rose higher in the garment industry. He was awarded the Coty award by the fashion press consecutively in the years 1973, 1974, and 1975. The company produced annual revenues of $30 million by the year 1977. The year 1981 saw a steady rise in his annual income with new license for cosmetics and jeans in addition to the existing ones which included scarves, belts, shoes, furs and sunglasses, which estimated to about $8.5 million a year (according to Fortune magazine report). The company was soon becoming the talk of the town for its provocative ads featuring the famous Brook Shields in the 1980s for his Obsession perfume and the range of underwear, which was becoming a huge hit generating great revenues.
Calvin Klein was launched in the European market with a menswear collection in the late 1990s. The strategy worked out and the brand soon became equally famous in the European market as well. It was about to be made available at showrooms in various parts of Europe including Paris, Milan, Madrid, Dusseldorf, and London. Further plans were to launch it in Middle East and Asia.
Nevertheless, in spite of all success the company reported bankruptcy in the year 1992 due to some financial issues and unsatisfactory sale. Finally, the company was bought by Phillips Van Heusen Corp in the year 2002.
Today, Calvin Klein is again one of the most renowned companies in the fashion industry. It faces tough competition from The Gap, Gucci, Guess, Nautica and Levi Strauss Associates to name a few. Calvin Klein is all about style, colors and outlook. A brand worth owning!"
[...] Calvin Klein spend US$69 million on digital marketing and promotional campaigns in 2012. The company plans to expand digital promotional campaign expenditure to 70% of annual budget in 2016. Example: In September 2012, it launched digital campaign for its brand “Encounter fragrance” titled “Dare to Encounter” in United States and United Kingdom. The interactive digital campaign was launched in collaboration with license partner “Coty Inc” (www.moodiereport.com). Further, the company has steadily shifted its majority of sportswear and lingerie promotional budget to digital platforms in core and non core markets (North America, Mexico, United Kingdom., Germany, Spain, Hong Kong, Korea, Singapore, Taiwan and Philippines). [...]
[...] Finally, Calvin Klein is enhancing its regional and local presence into non North American markets simultaneously i.e. Latin America and Asia to improve competitive advantage. Industry Overview Denim jeans and fragrances are the core addressable market for Calvin Klein in 2012. The company has strong regional and national positioning across global denim jeans marketspace for past 5-10 years. ➢ Global fragrance segment reached US$ 37.9 billion, with year-on-year growth of in 2010-2011 (Datamonitor, 2012). The segment is stipulated to reach US$ 45.7 billion, with CAGR of in next 3-4 years (2011-2015). [...]
[...] ➢ Place: United States is the biggest marketspace for Calvin Klein accounting for 45% of global retail value sales in 2011 (The Economist, 2012). China, United Kingdom and Italy are secondary core markets for the enterprise constituting US$300 million, US$300 million and US$250 million retail value sales respectively in 2010-2011. Brazil is the fastest emerging, stipulated to reach US$1 billion in retail value sales in next 3-4 years (2016). The company is aggressively expanding its global and regional reach through health & beauty retailers along with establishing of company owned stores in new markets such as Carribean, India etc (The Economist, 2012). [...]
[...] In 2011, PVH Corp carbon footprint increased to 0.85 million tonnes 30.7 Negligible environment initiatives related to green branding and water consumption etc. Calvin Klein Corporate Social Responsibility Contribution Matrix (2012) Financial Society Environment Low Low Low Recommendations In 2012, Calvin Klein has niche market positioning across global lingerie and intimate wear segment with market share of 1%. The company is aggressively focusing on enhancing market positioning across lingerie, intimate wear, fragrance, color cosmetics and female accessories markets on worldwide basis. It's unique mid price and strong license partnership centric business model along with global market concentration (i.e. [...]
[...] On the other hand, Calvin Klein has mid priced growth and expansion strategy. The differentiating growth strategy focusing on mid priced volume centric emerging market expansion has enhanced competitive advantage for Calvin Klein as compared to Diesel, Guess and True Religion (GlobalData, 2012). Risks, challenges and Limitations Calvin Klein faces steep macro and micro risks due to its operations across 72 countries worldwide. The core risks are as follows (GlobalData, 2012): ➢ Low employee retention and higher labor disputes will hamper competitive advantage. [...]
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