Calvin Klein boss talks strategy
In the fast-moving fashion world, brands have to evolve to stay current. With that in mind, Fashion giant PVH Corp’s iconic Calvin Klein (CK) has announced a number of big changes in recent days that look set to reinvigorate its position in the market. First, and most obviously, is the abrupt departure of the label’s chief creative officer, Raf Simons. The designer had only been at CK for a couple of years, and he had eight months left on his contract. But that’s just the beginning: in a recent announcement, the brand’s CEO, Steve Shiffman, added details.
PVH Corp’s share price has already appreciated by 15% so far this year
Source: Yahoo Finance
Shiffman said, at the end of last week: “CALVIN KLEIN has long been driven by its ability to balance art and commerce in a culturally relevant way – one that has often defied the status quo. Our industry is witnessing a historic transformation in consumer behavior which presents a significant growth opportunity as we look to grow the brand to $12 billion in global retail sales over the next few years. Now more than ever, we must double down on meeting consumer demands by creating culturally relevant products and experiences that engage communities by pushing fashion and culture forward.”
Here are some of the headline changes that will be going on in CK’s near future: the brand’s flagship store, situated at 654 Madison Avenue, will be closing this spring. CK will also be relaunching its CALVIN KLEIN 205W39NYC business, albeit with a new name. This ‘new’ business will interact with other CK brands, bring in new products and unique experiences, and “evolve the traditional luxury fashion model by connecting with a diverse range of communities, offering an unexpected mix of influences and moving at an accelerated pace.”
Shiffman added that the brand’s leadership team would be putting digital first, introducing a “consumer marketing organisation” and streamlining its North American business to become a “more effective organisation”. He said: “These strategic initiatives will enable us to run a more modern, dynamic and effective business, as well as allow us to reinvest in the brand.”
Dominion holds PVH Corp in its Global Trends Luxury Fund.
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