A Critical Study on Tommy Hilfiger in Europe and Evaluation of its Coping Mechanism in Adapting to European Fashion Market


 


Chapter 1


Introduction


In a volatile and every shrinking global economy that has started before this century, businesses from all sectors – from technology, pharmaceuticals, construction, architecture, communications up to arts – has been faced with the inevitable and crucial problem of adapting from the multi-faceted culture of different regions they engage their businesses in and the legal systems that work here.  This cannot be avoided. 


Then there are basically two cultures known: the West and the East or rather the Occidental and Oriental Culture.  But doing business with the Western countries even if a business comes from West proves to be tricky.  Each Western region still has differences from their neighboring regions, which before had been clustered as it with their culture.


This can be seen remarkably in the Fashion business where US-based fashion companies that sell apparels and retail ready to wear clothes are being confronted with when they sell their wares in the European market, particularly the UK market. It is because Europe alone has over 30 different countries.  Then within Western Europe, there are already ten different languages spoken, mainly English, French, and German. Each of these countries has its own legal and taxation system. Add to that the introduction of the Euro that somehow removes some complexity but still the problems with the local currencies exists since not all countries in Europe are within the Euro sector.


The living standards vary in Europe that even within Western Europe there are big differences between living standards. There are also cultural differences within Europe itself, like habits, food, events, and tastes for fashion and so on. Within the European market there are many local competitors to put the market more complex, which unavoidably increases competition across the continent. In Europe there are no big, pan-European department stores. There are a lot of local retail structures something the foreign-based apparel company has to contend with.


Apparel companies like Tommy Hilfiger has to contend with all of these factors to stay afloat and be ahead of the pack taking a chance to corner the fashion market in Europe, particularly in UK, or just in the goal of taking a modest proportion of the market share.


In dire need to expand their market in the globalize economy, Tommy Hilfiger in Europe needs to upgrade, cope, adjust and restructure their thinking of what is fashionable according to the fashion sense of European taste.  Helpful will be the knowledge in the issue on the emerging fashion trend in the retail market for ready to wear merchandise in the European scene.


This proposed study will provide a theoretical framework with which to see how a US-based apparel company can maneuver itself in making a niche for itself in the European fashion market through knowledge on the prevailing market in the region, adjustment and adaptation on its fashion idiosyncrasies, with all the cultural aspects in consideration. 


There will also be a comparative study of different US-based apparel companies operating in Europe that for a time have been getting favorable positive market share in the region.


Conceptual Framework


This study will utilize the model of competitive advantage to explore, explain and analyze the dynamics of the fashion industries in Europe and also relation on apparel companies’ to adjust, adapt, establish or improve its presence in the European, particularly UK, fashion market.


A cross-sectional study will be made on different apparel companies operating in European countries, particularly UK, to provide the data needed to compare, contrast and evaluate the effectivity/ineffectivity of management styles that fashion and apparel companies use to keep up with the competition. This paradigm would serve as the guide in the breakdown of the strengths and weaknesses of fashion companies working in Europe and their different approach on the market. Consequently, the theoretical debate on the kind of strategies that would be most efficient and competitive in the market would be evaluated.


This paradigm was chosen for the study because of its dynamic approach on the topic of persistence and advantage among contenders for market supremacy and competitiveness. Competitive advantage discusses the condition which enables an apparel company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, and which results in benefits accruing to that company.


Primarily, it deals with the concept of change, adaptation and how fashion companies are able to cope up with it and get the bigger share of the market. Business pundits have been talking about change and adaptation as the key to success and survival for at least two decades in this business of selling apparels. It is equally clear that the rate of change is getting faster. And adaptation to the market and consumer’s fashions taste is the key for success.  But there’s a deeper current than mere adaptation to the market – it is how well fashion-company adapt very well that really matters in this area. 


This cross-sectional study will utilize the data available on these four prospective apparel companies:


Gant – Gant from its more than two decades of existence since first launched in Europe in 1980 has been earning 20 EM per annum in Europe, getting a modest share of the market. Known for its quality of products especially men swear, and consistency, it still has to contend with its weaknesses of being very regional, the high price of its product and have to expand and be known in the league of selling women’s’ wear and denims.


Lacoste – Short of couple of decades to reach a century as one of the oldest apparel company operating in Europe since launched in 1933, with an estimated 200 EM profit per year, Lacoste’s products are best known and popular for the casualness of its products and the consistency it has built through its long decades of existence.  Though it still has to expand a little bit since it operates in a very regional territory and the clothes/product it offers are so narrow in choices consumers have not enough products to choose from what it offers.


 Levi’s – Probably the most successful apparel company of the century worldwide with an earning of 1,240 EM each year in Europe alone.  First launched in the European market in 1959 and from then on never looked back as one of the best selling apparel in Europe.  Best known for the consumer’s awareness of its product and denims sales that supports a huge chunk of its sales.  The only trouble with the company is trade relations and a repositioning in the European market.


 Mexx – Mexx apparel company is earning a modest but ahead of the pack with 380 EM in Europe.  Launched only two decades ago in 1980 it is known already for its strengths in marketing and affordable price for the consumers who are mostly women.  Though very regional in its operation, it needs to upgrade its products on the aspect of selling menswear.


Polo/Ralph Lauren – Polo/Ralph Lauren was launched in European fashion market during the early 80’s, 1983, and quickly made a dent in the European fashion sense.  In its two decades of existence in the volatile European fashion market, it is already earning 300 EM per annum, being known already as a success in the fashion business.  It clothes quality is known for its consistency and stereotyped as good apparel company catering for men for its menswear products.   The only downside with this company is its pricing on its products, weak selling points in womenswear and denims, and add to these is its aging client base.


Statement of the Problem:


            This study will attempt to answer the following questions:


1.    What are the marketing strategies of apparel companies particularly of those leading in the fashion market in the United Kingdom and other major cities in Europe?


2.    How do apparel companies cope up with the rapid change in the European fashion trend using knowledge about cultural and other issues in Europe?


3.    What are the effects of this knowledge on strategies on the goals, objectives and long-term plans on the apparel companies and the case of Tommy Hilfiger in Europe in particular?


4.    How potent is knowledge about cultural and other issues in management of attaining of apparel companies goals/objectives, keeping up with competition on other fashion companies in the market and in accomplishing long-term management, financial goals and healthy existence of the company in the market?


Hypothesis


            This study attempt to prove the following null hypothesis:


1.    The higher the level of knowledge of an apparel company on the cultural and other issues in the prevailing regional environment where it operates, the greater the tendency of the company’s success in terms of profitability


2.    Conversely, the lesser the level of knowledge on cultural and other barriers where its company is set, the lower the tendency of the bank’s success in terms of profitability


3.     The success of the apparel industry is directly proportional to the execution of knowledge about management cultural and other issues


4.    Conversely, knowledge management on cultural diversity of a region where an apparel company operates is inversely proportional to the failure of the apparel sector


Scope and Delimitation


This study will undertake the relationship between survival techniques vis a vis cultural and other barriers confronted by an apparel company in a certain region and provide the background on the understanding of how this knowledge can be used in promoting growth and profit and established the apparel company’s niche in the market. A comparative study of other apparel companies will be done to find out the positive or negative result of such knowledge in cultural and other issues affecting the operation of a foreign-based apparel company in a certain region. And also to effectively analyze the extent to which companies will need such knowledge in their operation.


This study will be limited to the above-mentioned and data not relating to the specified apparel in United Kingdom and other major European cities used in the study will not be covered. The review of literature will only cover data and studies from 1990 to the present with the exception of the theory of comparative advantage and illustrations of the traditional methods for such study. This study will only draw conclusions from the findings on United Kingdom’s and other major European apparel companies and any attempt of generalization may/may not is applicable to other societies because of several factors.


Significance of the Study


            This study is an attempt to illustrate the significance of knowledge in cultural and other issues being confronted by foreign-based apparel company in general and the Tommy Hilfiger in Europe in particular. This will also be an informative guide for students, professors and fashion enthusiasts on the basics of operating an apparel company in a certain region and how it is being utilized to meet goals and survive competition. Further, this analysis will be beneficial for the fashion business as well and those used for the study as a tool in improving or reforming their operational systems.


Definition of Terms:


Apparel Company – an organization that designs clothes for selling and cater to the public market with their needs for read to wear clothes, both for men and women, either jeans, sportswear, shirts, women’s accessories and the like Competitive Advantage – Condition, which enables a company to operate in a more efficient or otherwise higher-quality manner than the companies, it competes with, and which results in benefits accruing to that company.
competitive advantage Sector – A distinct subset of a market, society, industry, or economy, whose components share similar characteristics. Management – The group of individuals who make decisions about how a business is run.

 


 


 


Existence or Absence of Cultural And Other Barrier in Introducing New Fashion Item in Europe: the Case of Tommy Hilfiger


 


Chapter 2


 


Review of Related Literature


This chapter tries to sort out the pre-conceived cultural and other barrier being confronted by US-based fashion companies in penetrating in the European market.  In finding whether there is such an obvious cultural barrier existing in this business between the two, a definition of culture is first discussed, then several important study on culture, then followed by the cultural background of Europe.  There is also a comparison, if there is a difference, between the culture of United States with that of Europe.  Then a short case study on one popular and well-known US-based fashion company Tommy Hilfiger on its business life in Europe is discussed.


 


Are there cultural and other barriers for US-based fashion companies in introducing fashion items in Europe? Do introduction of fashion collections for men and women like sportswear, tailored clothing and dress furnishings, athletic apparel and fragrance, jeans, accessories, and fragrance in the European market pose a great difficulty for US companies that specializes in this business?  At a swift glance there seems to be a cultural difference between United States and European nations for the two are situated far apart around the globe, almost halfway in fact. 


 


Responding to an increasing global demand for men and women fashionable cloth designs, sportswear including junior jeans line, robes and sleepwear, socks, sunglasses, footwear, handbags, major fashion companies based in United States have been venturing in the European fashion market for a long time now.


 


There are many numbers of US-based corporations that exist in Europe that offer goods and services in different businesses like pharmaceuticals, car marketing, household accessories, architecture, advertising and other slew of businesses.  And then there is fashion. The big question is “Is there a different kind of behavior coming from the European consumers in reacting to the fashion sense exported by United States to the European market?”  Is there a cultural basis for such reaction, if there is such?


 


There might be a pre-conceived idea from some sectors that there are cultural and other barriers US-based fashion companies experience that confronts and challenge their business-sense in penetrating the European market.


 


First let us define culture and then look closely at culture of Europe then compare it with that of the United States.


 


According to Simpson (cited in Trompenaars & Hampden-Turner, 1999) a fish when it is out of the water only realizes its need for water during this time.  It is the same with culture; it’s like water to a fish. What one regards as essential, for example material health, may not be so important to other cultures.


 


There are over a hundred definitions of  “culture” ranging from broad to extended ones, extrapolating the myriad aspects of culture as written by Kroeber and Kluckhohn (1985).


 


Kanter & Corn (1994) describe culture as the collective understanding of meaning that is the core stability in society. These cultural factors fan the flames of intergroup conflict or encourage the acceptance of differences.  Analysing the literature of the subject results in finding two very popular definitions.


 


The first is anthropological and that culture is a body learned behaviour, a collection of beliefs, habits and traditions, shared by a group of people and learned by people who enter the society. The second is by Hofstede (1991) that says it is the collective programming of the mind of one human group that distinguishes the member from another group. Culture, adds Hofstede, includes systems of values.


 


This suggests that culture is learned, not inherited and can be learned so as to integrate cultural differences. The elements creating this cultural programming of the mind are as follows: Language – verbal and non verbal; Religion; Economics; Politics; Social; institutions (social classes, family structure); Values; Customs; Attitudes; Manners; Education; Material items; and Aesthetics.


 


Some of these elements, according to Hofstede, can be observed by our senses as material items – food, buildings, monuments, places of religion cult, agriculture, markets, shops, art, language, music, manners and fashion, etc.


 


This outer layer of culture consists of explicit culture that is observable and called generally artefacts and products. The other elements are not so easy to perceive like norms, values, customs and attitudes. They are called the middle layer of culture.


 


The Culture of Europe

In several cross-cultural studies done by various scholars, Europe’s culture has been assessed and imbues with certain characteristics, which is important and vital in doing business and interacting with them.


An early study by two American anthropologists Kluckhonh & Strodtbeck’s (1961) explained cultural similarities and differences in terms of a number of fundamental dilemmas that all societies face. What they find as the core of European’s culture is:


1) relationship to nature which can be perceived as subjugation, harmony or mastery of nature. This society is convinced that there is the supremacy of the human race in the World and that is why people can harness the forces of nature. This attitude can be observed in the English-speaking nations (like Britain) and many other European countries. 


2) human relationships — are perceived as individual, lineal called hierarchical, or collateral – collectivist. Europeans are individual who believe that an individual human being should be independent. Individuals take responsibility for their own actions and behaviour. Anglo-Saxon societies tend to be individualistic, emphasising the significant role of the individual in society. According to Simpson (2001) human relationships are perceived as individual, lineal called hierarchical, or collateral – collectivist. Cultures that are individual believe that an individual human being should be independent. Individuals take responsibility for their own actions and behaviour. Anglo-Saxon societies tend to be individualistic, emphasising the significant role of the individual in society.


3) concept of space — can be perceived as private, public or mixed. There are societies where space is treated privately with respect for personal ownership. Everything that is private is valued, including private meetings. Anglo-Saxon cultures belong to this category.


 


Hall’s Cultural Contexts Model


Different societies and culture groups respond differently to their contexts when they maintain relationships. Hall (1976) was the author who found out that to understand the behavioural priorities of a particular group it is necessary to know their contexts and how members of the group experience them. He distinguished culture between: high-context cultures and low-context cultures.


People from high-context cultures depend mainly on the external environment, situation and non-verbal behaviour when they create and interpret communications. While low-context societies are characterised by quite different features. It means that:


 


Ø  relationships between people are relatively shorter and usually there is no such deep involvement as in high-context cultures


 


Ø  insiders and outsiders are less closely distinguished. It results in relatively easier adjustment of foreigners to the society. In some societies immigrants may be encouraged to take nationality


 


Ø  cultural patterns are not as ingrained as in high-context societies and faster to change.


 


Hall’s cultural model is based on qualitative insights rather than quantitative data. Examples of high-context countries are as follow: Asian countries as well as the Middle East and countries around the Mediterranean. Low-context countries are among Great Britain, New Zealand, Australia, Germany, Scandinavian countries etc.


 


Meanwhile Trompenaars & Hampden-Turner (1999) proposed a seven- dimension model of examining variety of cultures. They stated that cultures distinguish from each other by the specific solution of the problems that are treated as dilemmas. These fundamental problems belong to our relationships with other people, our attitude to the environment and time. In analysing relationships with people they take under consideration five dimensions or orientations: Universalism versus particularism; Individualism versus communitarianism; Neutral versus emotional; Specific versus diffuse and Achievement versus ascription.


      Universalism can be stressed in saying that it is possible to define things or ideas that are right and good, if so they should be always and everywhere implemented. The examples of this approach are among others Great Britain and Sweden.


      Though the idea of individualism (Great Britain, Netherlands, Sweden) and communitarianism (France, Germany, Japan) is very similar to Hofstede’s (1991) interpretation of individualism and collectivism.


     The Neutral approach is preferred where people dealing officially are objective and rational. Expressing emotions is not treated as professional and what is more, impairs business. Great Britain and Germany can be given as examples of this attitude.


Another dimension is differentiation between the specific approach and the diffuse. The knowledge of the importance of this cross-cultural difference is very useful both in business and in other kinds of relationships. The specific approach focuses on a particular matter – in business on getting a contract signed and relationships between parties are limited to the negotiated points of the agreement. The examples of this attitude are Great Britain, Netherlands, Sweden. In the diffuse approach the personal relationships are very important and they enhance business relationships. This approach can be found in many Asian cultures, Latin America, and Arabian countries.


      Achievement cultures believe that an individual should be judged on what he/she has recently achieved and the first question is “what did you study?” The examples of achievement cultures are Great Britain, Sweden, Germany, Netherlands, Japan. In ascription societies the questions is “where did you study?” Ascriptive cultures like France are convinced that social status is attributed to an individual by birth, kinship, gender, age, connections or educational record.


Another dimension is attitude to time similarly like in the Kluckhohn and Strodtbeck model. Some cultures perceived time as passing in a straight line and a sequence of different events. Past is not as important as present and future and consequently past achievements are not very much recognised and appreciated. This attitude is characteristic for Great Britain, Netherlands, Germany, Sweden.


 


Though Garreau (n.d.) noted one of the major cultural differences among European nations themselves.  First Europe is divided by northern Europe (Scandinavian countries, Benelux, British Isles, Austria and Germany) and southern Europe (Italy, Spain, Portugal and Greece).  One point Garreau observed is the way they conduct business. In the north there is much more concessus-type approach whereas it’s a more autocratic and authoritarian in the south.  Human nature may be the same everywhere but they do not think or act alike.


 


The Culture of United States vis-à-vis the Europeans


It is stereotypical knowledge that two major cultures that seemed never to meet is the culture of the West and the East.  For centuries this simple knowledge has been the issue of cultural clash, barriers that block the two cultures that many writers and historians have put tons of studies and chapters of books discussing the difference.  But examining closely this immemorial culture division that civilization knows, United States and European nations are clustered in the same culture called the West!


 


Putting together the cultural studies and researches done by Kluckhonh & Strodtbeck’s, Hall, Trompenaars & Hampden-Turner, and Hofstede, we can only see one major obvious similarity between United States and European nations.


 


First all the cultural undercurrent of European nations is the same with that of the United States.


 


Basing from Kluckhonh & Strodtbeck’s study about the cultural similarities and differences in terms of a number of fundamental dilemmas that all societies face – relationship to nature, human relationship and concept of space – the Americans is very the same way with their European counterparts.  Their relationship to nature can be perceived as subjugation, harmony or mastery of nature. This is a society convinced on human supremacy over the World and believes that people can harness the forces of nature. As Kluckhonh & Strodtbeck’s noted this attitude can be observed in the English-speaking nations and many other European countries.  Obviously, United States is an English-speaking nation.


 


Hall’s Cultural Contexts Model, that distinguished culture between: high-context cultures and low-context cultures, finds that low-context countries are among Great Britain, New Zealand, Australia, Germany, Scandinavian countries etc. Including United States.  Low-context culture means relationships between people are relatively shorter; insiders and outsiders are less closely distinguished and results in easier adjustment of foreigners to the society; and cultural patterns are not as ingrained that culture is faster to change.


 


Likewise Trompenaars & Hampden-Turner’s seven- dimension model of examining variety of cultures clusters United States with the European nations. (See the above the seven-dimension model formulated by two and in all of these seven factors, United States and European nations fare similarly with each other.


 


The same can be said with that of Hofstede’s study.


Probably one remaining possible barrier that one can think of between the United States and other European nations is the language barrier.  But on the second thought, fashion sense is not dictated by language.


 


Tommy Hilfiger in Europe

According to Bomersheim (2001) that from the perspective of marketers, it’s better to be in the fashion business (in Europe) than to sell humdrum old commodities. This is on the conclusion that people will pay good money to get that special look.


 


And that is exactly what fashion companies are doing.


 


From a humble beginning of designer Tommy Hilfiger according to www.tommy.com with only a retail career of 0 and 20 pairs of bell bottom jeans, Tommy Hilfiger is now a household names around the globe with profit reaching billion earning a year and know known for trendy fashion designed clothes for men and women, sportswear, tailored clothing and dress furnishings, athletic apparel and fragrance, jeans, and fashion accessories.


 


In a Press Release on July 6, 2001 www.tommy.com announced the complete acquisition of Tommy Hilfiger Corporation of T.H. International N.V., the owner of its European licensee, for 0 m.  Tommy Europe markets and distributes Tommy Hilfiger men’s, women’s and children’s sportswear and jeans wear in Europe and the Middle East through diverse channels, including wholesale sales to quality retailers, franchisees and regional distributors, and retail sales through a limited number of company-operated specialty and factory outlet stores.


 


Then according to www.fashionunited.co.uk Hilfiger profits rise due to European business, where 15 of its stores are located.  The fashion company posted better than expected second-quarter profits, mainly due to the acquisition of Tommy Hilfiger Europe.  The net profit in the 3 months to September was up to .9m (EUR 52.9) compared to $ 44.9m in the same period of 2000. In the first half year, net profit amounted to 56.9m.  Tommy Hilfiger Europe is expected to contribute 5m to Hilfiger’s financial year.  Turnover in the first half declined from $ 933.2m to 1.1m.  Women’s wear is continuing to perform strongly, while children’s wear and sales declined.


 


Going back to the research of scholar Hofstede who states that culture is learned, not inherited and can be learned so as to integrate cultural differences. Where some elements creating this cultural programming of the mind (Language, Religion, Economics, Politics, Social, institutions, Values, Customs, Attitudes, Manners, Education, Material items, and Aesthetics) can be observed as material items, specifically like fashion. 


 


Following the argument of Hofstede, fashion therefore can be learned and can be integrated, and at some point with relative ease fuse with the culture of other nations.


 


This is best exemplified by the case of fashion company like Tommy Hilfiger in Europe.  The collection of clothes offer by Tommy Hilfiger are easily adapted and patronized by Europeans and can be seen on the high sales of stores in Europe.


 


On the contrary, back to where Tommy Hilfiger is based, United States, the company according to its website www.tommyhilfiger.com press release dated November 1, 2002, Tommy Hilfiger announced plans to close most of its U.S. full-priced retail stores, saddled by declining sales in its men’s wear and children’s wear. The company gave off warning that profit for the second half of its fiscal year will be well short of expectations.


 


According to Time Europe writer, Thigpen (2000) Tommy Hilfiger may be a victim of its own successes. After ten long years in which the company’s average growth sizzled at 48% a year, some business pundits fear Tommy’s recent expansions into women’s wear, perfumes and baby gear may have pushed the brand to a saturation point since Tommy products are already in 10,000 stores across the U.S.


 


Tommy Hilfiger Europe might be experiencing minor barrier for its fashion items to be introduced in Europe, like dealing with business people from the north and south Europe where there is a slight different business working ethics, but overall the Tommy Hilfiger fashion business is a success and well supported by consumers.


 


Probably we can conclude that with the fact in hand that the stores in the United States are the ones closing, cultural barrier is no longer an issue but business acumen of how to sustain financial growth in a competitive fashion market plays already a fundamental issue.


 


Summary


Analysing all the study and researches done by scholars on the issue of culture and the different cultures in world, their models can be useful for close scrutiny and understanding of cross-cultural issues. From the study, they give clear view on different approaches and attitudes of people originating from different countries and regions, and at some point their similarities. The issue between the difference of culture between United States and European countries, on the aspect that it can affect doing business between the two, particularly on fashion business in introducing new fashion item in the European market.


There are loud similarities in the culture of United States and European, and why then they are clustered in the term The West.  They maybe minor difficulties that may pose some problems doing business for US-based companies, particularly in fashion business, but they are usual and not out of cultural barrier, as some may say.


The case of Tommy Hilfiger is given as a study on the success of US-based fashion company in Europe only if the company will play its cards well and practice sound business acumen.  So far there is no obvious cultural barrier US fashion companies experience in Europe as this paper shows.  Doing fashion business between United States and European nations is like doing any business for that matter.  Fashion companies can be either with relative ease penetrate the fashion market of Europe since fashion is not restricted by language, and people has a inclination to look good without consideration on where the fashion company is based.


 


Reference:


 

Bomersheim, W.P., 2001, Making American Hardwoods Fashionable in Europe:


The Role of Public Relations, Accessed: 2003/04/02


http://www.fas.usda.gov/info/agexporter/2001/jan/American-Hardwoods.htm


Garreau, J.E., (n.d.), The Languages of Europe: A Cultural Introduction


            A Cultural Introduction to the Languages of Europe, Accessed: 2003/04/02


            http://faculty.uml.edu/jgarreau/50.315/Europ1.htm


Hall, E.T., 1976, Beyond Culture, Anchor Press, Doubleday


Hofstede, G., 1991, Cultures and Organisations, Software of the Mind,


Intercultural Co-operation and its Importance for Survival, McGraw-Hill


Book Company, London


Kanter, R.M. & Corn, R.I., 1994, Do cultural differences make a business


difference? Contextual factors affecting cross-cultural relationship


success. Journal of Management Development, 13, p.p. 5-23.


Kluckhohn, C., & Strodtbeck, F., 1961, Variations in Value Orientations,


Westport, CT, Greenwood Press


Simpson, D., 2001, Cross-cultural studies as a way of improving, promoting and enhancing contacts between countries and businesses

Thigpen, D.E., 2000, From New Wave to Wavering, Time Europe, Vol. 155, no.


18


Trompenaars, F. & Hampden-Turner, C., 1999, Riding the Waves of Culture,


Understanding Cultural Diversity, Nicholas Brealey Publishing, London


2001, Tommy Hilfiger Corporation Completes Acquisition of its European


      Licensee, Accessed: 2003/04/02 www.tommy.com


2002, Hilfiger forced to close 37 U.S. retail stores, Accessed: 2003/04/02


www.tommyhilfiger.com


 


 


Chapter 3


 


Methods And Procedure


 


This chapter will discuss the method of research to be used, the respondents of the study, the sampling technique, the instrument to be used, the validation of the instrument, the administration of the of the instrument and the statistical treatment of the data that will be gathered.


 


Method of Research to be Used

This study will use the descriptive approach.  This descriptive type of research will utilize interview, observation and questionnaires in the study.  The descriptive method of research is described as gathering of information about the prevailing condition at the present.  Its purpose is to employ describing the nature of a situation as it exists at the time of the study and to explore the cause/s of a particular phenomena.


This study will determine whether the lifestyle of the Europeans, particularly the English in UK, has peculiarity in the aspect of culture compared with that of Americans that can bring about a different taste in fashion and choice of clothing apparel. Specifically, the study will describe the characteristics of the English terms of their age, gender, civil status, religion, birth order, educational attainment, occupation, place of origin, present location, housing status, and number of children; identify the their particular preference on the issue of what clothes to wear, what they look for the clothes, its design etc.


            The primary source of data will come from a researcher-made survey questionnaire that will be given to the respondents.  The respondents of this study will be randomly selected now residing in different places in UK. 


The secondary sources of data will come from published articles from social science journals, theses and related studies on culture, fashion and apparel business operation.


For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from social science journals, distribute sampling questionnaires; arrange interviews; and make a content analysis of the collected documentary and verbal material.  Afterwards, the researcher will summarize all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations on the dealing with the issue of foreign-based apparel company operating in European setting.


  Respondents of the Study The general population for this study will be composed of English in major UK cities like London, Birmingham, and Nottingham in particular numbering three hundred (300) respondents. 

 


Sampling Techniques

 


The researcher will use a combination of cluster and random sampling.  First, the researcher will cluster the three identified UK major cities; London, Birmingham, and Nottingham.  From each cluster, the researcher will randomly pick known English in these cities. 


To make the sampling easier for every specific cluster, the researcher will seek the aid of any English-based fashion organization to facilitate the names and addresses of the respondents or have them together in one place (i.e, in a organizational meeting) so that the surveys can be given in one session.  The researcher will pick one hundred (100) respondents per cluster for a total of three hundred (300) respondents.


  Instruments to be Used

To determine whether there is a cultural and other issues of barrier in fashion for foreign-based apparel company in UK, the researcher will prepare a survey questionnaire that will be given to the intended respondents. 


Part 1 of the survey will ask for the characteristics of English respondents according to age, gender, civil status, religion, birth order, educational attainment, occupation, place of origin, present location, housing status, number of children.


Part 2 will determine the level of participation of English respondents in fashion in relation to their taste, clothing preference and whether they consider the clothes a foreign-made or local,.  The respondents will grade each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents will be given five response choices. The equivalent weights for the answers will be:


Range                                                            Interpretation


      4.50 – 5.00                                        Always


3.50 – 4.00                                        Very Often


2.50 – 3.49                                        Often


1.50 – 2.49                                        Sometimes 


0.00 – 1.49                                        Not at all


Part 3 will identify the problems they know foreign-based apparel company experience in catering to their clothing needs.  The experience these foreign-based apparel company in adjusting to the taste of the local market and what they are doing about it to compete with the prevailing market. The respondents will also be free to give their own experiences which are not stated in the choices.


 


Validation of the Instrument


For validation purposes, the researcher will initially submit a survey questionnaire and after approval, the survey will be given to ten English.  After the survey questionnaire will be answered, the researcher will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument.  The researcher will again examine the content of the survey questionnaire to find out the reliability of the instrument.  The researchers will exclude irrelevant questions and will change words that would be deemed difficult by the respondents to simpler terms.


 


Administration of the Instrument


The revised instrument will then be administered to the respondents of the study that will be chosen through a combination of cluster and random sampling.  The researcher will exclude the ten respondents who will be initially used for the validation of the instrument.  The researcher will also tally, score and tabulate all the relevant data in the survey questionnaire.


 


Statistical Treatment of Data


When all the survey questionnaire have been collected, the researcher will use statistics to analyze all the data.


The researcher will statistically treat the data on Part 1, the profile of the respondents, first, according to age, gender, religion, birth order, civil status, educational attainment, occupation, place of origin, present location, cultural profile, fashion preferences and fashion biases


The statistical formulae to be used in the second and third part of the survey questionnaire will be the following:


1.     Percentage – to determine the magnitude of the responses to the questionnaire.


            n


% = ——– x 100        ;           n – number of responses


            N                                 N – total number of respondents


 


2.     Weighted Mean


 


            f1x1 + f2x2  + f3x3 + f4x4  + f5x5


x= ———————————————  ;


                        xt


 


where:            f – weight given to each response


                        x – number of responses


                                   xt – total number of responses


 


 


 


QUESTIONS FOR the CEO of TOMMY HILFIGER – Europe


 


 


Dear Mr. Hilfiger,


 


            The undersigned is from Britain enrolled in ________________ under the program, Doctor of ____________________________.


 


            You were selected as a resource person in this study about “Issue of Culture and other Barrier for Foreign-based Apparel Company Operating in Europe Particularly in UK”. Due to your rich experience and immense knowledge in the subject, your insight on the questions formulated for this topic will be of great help.


Rest assured that your answers will be treated with utmost confidentiality. 


Thank you.


 


                                                                                                _____________________


                                                                                                            Researcher 


 


  • What it is like operating in Europe, especially for the English consumers of apparel or ready to wear clothes?

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  • What are your first difficulties in entering the market of European fashion?

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  • What are the major adjustments you made in presenting your designed clothes to the European Market?

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  • What particularly are the difference from what the consumer like in the US than in the Europe particularly in UK?

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  • Is there any particular designs that Europeans especially the English in picking read to wear clothes?

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  •  What are these designs?

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  • There are basically the same seasons in the United States and Europe, particularly in UK, do the consumers prefer any clothing specification during these changes of the seasons?

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  • The apparel fashion market in Europe is always changing, how to do cope up with the new trends in clothing and designs?

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  • What particular clothing design do Americans and Europeans have the same in fashion taste?

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  • What are these?

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  • What then in return do Americans and Europeans differ in fashion sense?

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  • What are these?

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  • There are more than ten retail stores that closed in the US, some analysis says you over expanded too much and saturated the market with your products, do you fear this might happen too in Europe, what with their ever changing fashion taste?

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  • Are you going to try retailing women’s intimate wear?

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  • You set up a website for your retail business, how do you see this as an edge in the European fashion, in particular, market domination?

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  • It is a posit of this study to find the cultural barrier posed by catering to a foreign market for a US-based apparel company, but for once your company has been conceived as racist in some way, can you clarify once and for all the real issue behind this?

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  • Do you find difficulties selling your clothes outside US, particularly in Europe and specifically in UK, because of this issue?

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  • What steps did you take up to counter this false belief in your product and the philosophy of you company?

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  • Are you finding a hard time erase this misconception about your apparel company?

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  • On the trend about European retail fashion, what are your prognoses about the line of clothes that will be a trend in the succeeding seasons?

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  • What are the color of clothes that will hug the next coming seasons, for summer, winter, autumn and spring of 2003 to 2004 in European fashion?

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  • Are there plans for opening more retail stores for your line of clothes in Europe, particularly in the major cities of United Kingdom?

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  • Your apparel business is doing well in the European market, can you tell this interviewer the secrets and major strategies you employed to achieve this?

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  • Can you name some of these major strategies? Are there strategies that brought about the bringing down of some barriers in the fashion sense the Europeans?

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  • Will there be new set of new designs in your array of clothes that you plan to offer to the European clothe consumers?

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  • There are many successful and known apparel companies operating in Europe, particularly in UK, how did you cope up with the competition?

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  • What are your major market strategies in competing with them?

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  • Can you name what are the foreign-based apparel companies that has adapted pretty well with the European fashion market?

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  • And what are the lessons you learned from these companies that you have adapted for your company for it to also succeed?

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  • What can we expect more from Tommy Hilfiger in Europe in the coming seasons and years?

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  •  What are your goals in the coming years to come for your apparel company in the aspect of European market?

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    Credit:ivythesis.typepad.com


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