Calvin Klein unveils new, digital-first strategy
International fashion brand Calvin Klein is shifting gears to take a more digital-first approach to the business and tailor the brand to changing consumer wants and needs.
Steve Shiffman, chief executive officer of Calvin Klein Inc, a wholly-owned subsidiary of PVH Corp, announced three initiatives this week that he said would enable the company to run a “more modern, dynamic and effective business”.
“Our industry is witnessing a historic transformation in consumer behaviour which presents a growth opportunity as we look to grow the brand to US$12 billion in global retail sales over the next few years,” Shiffman said.
“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.”
In order to facilitate this change, the company is relaunching its CALVIN KLEIN 205W39NYC business under a new name, design approach and creative direction. It will also close its Madison Avenue store later in the year.
In North America, the company is consolidating men’s sportswear and jeans in order to strengthen the brand’s position and integrating its retail and e-commerce teams into a single omnichannel team to mirror how consumers browse, shop and purchase today.
Finally, Calvin Klein’s leadership team will adopt a digital-first approach and form a “consumer marketing organisation” to react to rapidly changing consumer demands.
Australian co-owners PVH Brands and Gazal Corp announced a major expansion of its retail network in Australia in May 2018, with plans to open 34 stores across the Calvin Klein, Tommy Hilfiger and Van Heusen brands.
In the longer term, the parent company believes it could have as many as 100 stores across Australia and New Zealand. Though it has yet to launch officially in New Zealand, it said it intends to do so in the coming years.
A dedicated e-commerce strategy was also announced to be a focus for the Australian brands moving forward.
The decision was made in order to minimise the brands’ reliance on the struggling Australia department store market.