Calvin Klein : Analysis of its Global operations
"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!"