The merits of a 'halo effect' have once again been called into question.
revenues , the designer collection business was seen as a marketing expense that provided a halo effect for the brand's lower-priced merchandise in department stores. By eliminating that portion of the business entirely, is signaling it believes that a halo business is no longer as important as it once was.But even though the brand will no longer produce a runway collection, who would lead design efforts for all product categories.
As for how Calvin Klein will go about charting a new future without a designer line, recent projects signal a new and tightened focus on its digital marketing approach. If its recent #MYCALVINS ad campaigns for its jeans line are any indication, efforts to capture the all-important Millennial and Gen Z market segments are well underway thanks to famous internet-friendly faces and young celebrities with global reach.Some industry analysts point to fellow PVH brand Tommy Hilfiger, which partners with influencers and celebrities like Gigi Hadid and Zendaya on collections that are on the affordable-premium end of the price spectrum.
With a strong foundation, brand perception and marketing team behind it, Calvin Klein understood that investing in an expensive collection business was no longer needed. Even though its runway shows attracted plenty of hype and celebrities in the front row, the new Calvin Klein will have a different approach to building buzz moving forward. Only time will tell how these efforts will play out in the long run.
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