Tommy Hilfiger has launched an online music channel in an effort to drive sales, as the credit crunch hits high-end brands.

The fashion entrepreneur has teamed up with Sony BMG to create Tommy TV, an online channel that offers exclusive music concerts and gives young unknown musicians the chance to perform with stars. Hilfiger told The Times that fashion brands have to “reinvent themselves”.

He added: “Luxury brands with very high price points are starting to feel the pressure. People are not buying US$2,000 (£1,012) handbags, but they are certainly buying affordable, wearable clothes.”

He said that, despite the credit crunch, the£2 billion flotation of his street-fashion brand – which was postponed in January due to the equity market turmoil – would be revived. He will focus on opening 50 more outlets, before returning to the market.

The retailer is owned by private equity group Apax.