Examining Tommy Hilfiger's Distribution Strategy

What is the significance of Tommy Hilfiger's availability at Macy's and its own outlet stores?

Tommy Hilfiger's availability only at Macy's and its own outlet stores is an example of monopolistic competition, where brands differentiate themselves in a market with many competitors.

The only retailer that Tommy Hilfiger apparel is available at other than the manufacturer's own outlet stores is Macy's. This is an example of a monopolistic competition brand. In monopolistic competition, a large number of firms compete against each other, but each offers slightly different products or has some level of market power that differentiates them from the competition.

For example, the Mall of America features numerous apparel stores that each present unique styles, brand images, or levels of quality, which cater to different consumer preferences. This type of market environment allows Tommy Hilfiger to be a distinguished brand available in selected retail stores like Macy's, providing them with exclusivity and a competitive edge.

The example given is an example of a monopolistic competition brand. Monopolistically competitive markets feature a large number of competing firms, but the products they sell are not identical. In this case, Tommy Hilfiger apparel is only available at the manufacturer's own outlet stores and Macy's, making it an exclusive brand in terms of where it can be purchased.

Overall, Tommy Hilfiger's distribution strategy emphasizes exclusivity and differentiation in a competitive market environment, allowing the brand to maintain its unique positioning and appeal to consumers seeking distinctive fashion choices.