Tommy Hilfiger chief Fred Gehring’s move to revive the brand’s sophistication has helped protect it against the downturn. He tells Lisa Berwin how music tie-ups have played their part.

The marriage of fashion and music is becoming increasingly important for brands and retailers that want to demonstrate a level of creditability and relevance to their customers. For Tommy Hilfiger chief executive Fred Gehring it has been an essential part of getting the brand back on track.
The US fashion group used music and fashion as part of its turnaround plan that it was forced to undertake when it became a victim of overexposure and diluted brand values. Gehring has been at the heart of the revival since 2006 and has helped the group – which now has more than 850 stores worldwide – increase sales and raise its profile.

“The brand had become red hot, maybe too hot,” recalls Gehring. “People did not know what it [the brand] was about. Were we preppy? Were we sportswear? Were we streetwear? Between 2000 and 2005 the label became stuck and we were being associated with baggy jeans and loud branded product.” The level of classic sophistication that Gehring saw as integral to the brand’s DNA had been lost.

“The challenge was to educate the consumer,” he says. “When you have hype it is good to ride the wave, but if you lose control you are in trouble.”

Refocusing the brand to classic, high-end style, as well as adding exclusive credentials through its association with music, has helped breathe new life into Tommy Hilfiger. And for Gehring, music is a personal passion too. He is a keen musician and even released his own album in his home country, Holland.

Gehring helped organise The Hilfiger Sessions across Europe and the US, where established and upcoming artists perform at an intimate gig for the music and fashion glitterati. The brand has also launched Tommy TV, a channel where it promotes its musical accolades and shows clips of the sessions.

The retailer was founded in 1985 by the eponymous designer, who remains involved in the business mainly on the design side. It was not until 2006 when private equity group Apax bought Tommy Hilfiger Group that Gehring, who handles the day to day running of the global business from its head office in Amsterdam, was able to successfully change the perception of what in his words had become an “overheated” brand.
Taking the business private allowed Tommy Hilfiger to buy back licences, which has been one way in which the group has regained control of its image, he says.

The retail strategy is another part of a major customer re-education. The company now runs more than 100 standalone stores across Europe, with comparable store sales up 3.4 per cent in the six months to September 30. Total retail sales climbed 6.2 per cent against last year.
In the UK, Tommy Hilfiger has eight fully owned stores and has two franchises in Belfast. Gehring says the UK remains under-represented by the brand and that the franchise business it has trialled in Ireland could be expanded further. He wants to open three to four stores a year for the next few years.

Hilfiger’s high-end position has so far helped it steer clear of the economic gloom. “What is happening is concerning but we are not seeing an impact yet, not even in the US,” Gehring maintains. “All of our comparable store sales remain positive – some substantially so.”
However, he remains cautious for the future. “If this climate is prolonged then no one is immune.”

He is also excited about winning over newer, younger customers to Hilfiger stores with its music sessions and Hilfiger Denim stores, which appeal to a much younger shopper. “In the UK there is a new generation, a new window of opportunity with an open mind,” says Gehring.
However, he stresses that he has no plans to plunge into the world of fast fashion, a world he perceives to be easier to manoeuvre in than his. “It is harder to work within the limitations of classic styles than if you have no limits at all,” he says.

He brings the way Tommy Hilfiger works back to his other love – music. “Writing a simple, great song is far harder than writing a complicated great song,” he concludes.

Gehring’s score
Family: married, with two children
Interests: music

CAREER HISTORY
2006: chief executive, Tommy Hilfiger Group
1997: chief executive, Tommy Hilfiger Europe
1976-97: after starting his career at Ceteco Trading in Honduras, Gehring ran his own consultancy in New York and held several senior positions within Polo Ralph Lauren. He also ran Pepe Jeans in London and Amsterdam
1976: graduated from business school, University of Nijenrode, the Netherlands