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    Case Study

    Tommy Hilfiger and Calvin Klein post-Covid-19: What’s in store?

    By Niccolò Pisani and Inès Augier
    20 pages
    February 2021
    Order this case study
    Reference: IMD-7-2265

    The global fashion industry was among the hardest hit by the COVID-19 pandemic, facing major disruptions on an unprecedented scale. On the retail side, challenges included store closures as part of government lockdown measures, as well as sudden shifts in market demand since many consumers were largely confined to their homes and facing economic uncertainty amid a deepening recession. On the supply side, complex and vulnerable global value chains proved to be ill-prepared for factory closures, prolonged shipping delays and reduced labor capacity due to lockdown measures, as well as sudden order cancellations due to a halt in customer demand. While these supply and demand shocks were triggered by the events of the global pandemic, they came on the back of a laundry-list of sustainability issues for which the fashion industry had since long been widely criticized, such as the environmental impact of textile waste and exploitative labor conditions for workers at the bottom of the value chain. A global leader in apparel, PVH Corp. (hereafter referred to as PVH) – parent company of iconic fashion brands Tommy Hilfiger and Calvin Klein – found itself in the same boat as many players in the fashion industry. PVH suffered significant declines in revenue and earnings, and was forced to make difficult decisions, including permanent store closures as well as substantial lay-offs and furloughs. Stefan Larsson, the president of PVH, who would succeed Emanuel Chirico as CEO in early 2021, had major strategic issues to address, not only to get the company through the COVID-19 crisis but to future-proof it in a challenging post-pandemic world.

    Learning Objective
    • Analyze how the COVID-19 pandemic, in conjunction with the ongoing digital disruption, has changed the fashion industry.
    • Understand the relationships between companies like PVH and multiple stakeholders, including consumers, suppliers, workers, governments, and shareholders, and how they affect strategy.
    • Explore the link between sustainability in business to long-term company growth, resilience, and futureproofing.
    • Develop strategies for companies like PVH that integrate the interests of multiple stakeholders into the business model, balancing social and environmental responsibility with a focus on profitability and shareholder value.
    Keywords
    Strategy, Digital, Fashion, Fast Fashion, Digital Disruption, Sustainability, Sustainable Management, Circular Economy, COVID-19, Pandemic, Innovation, Crisis Management, Decent Work Conditions, Responsible Consumption, Responsible Production
    Settings
    PVH, Consumer Goods, Apparel and Fashion
    2017-2020
    Type
    Published Sources
    Copyright
    © 2021
    Available Languages
    English
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    Teaching note
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    Copyright ©2024
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    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
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    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
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    Case reference: IMD-7-2620 ©2024
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    Reference IMD-7-2620
    Copyright ©2024
    Copyright owner IMD Copyright
    Organization Daikin Industries
    Industry Consumer Goods, Home Appliances
    Available Languages English
    Contact

    Research Information & Knowledge Hub for additional information on IMD publications

    Related topics
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    Overcoming adversity through innovation – Daikin at 100 (A): Leadership lessons

    This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircra...

    Global Business Strategy
    By Kazuo Ichijo and Yunfei Feng
    Case reference: IMD-7-2618, © 2024
    Read more
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    By Joep de Caluwé
    in I by IMD
    Summary
    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts.
    Read more
    Contact

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    in I by IMD 9 December 2024
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    Learn why flashy innovation often fails and how a strategic, fact-based approach can drive real innovation success in corporate environments. Insights from industry experts. In this final article in a series of three articles, Joep De Caluwé (EMB...
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