Abstract
Since the existing markets of Calvin Klein and Tommy Hilfiger were saturated and frozen, a new mode has been adopted by both companies to expand through new markets. The new expansion would be via distribution channels as well new target populations. American spirit is such that both aesthetic as well as the business style of both companies occupy a core position in their lifestyle. This approach is the opposite from the traditional European luxury houses, which keep a control over manufacturing and distribution. This control is kept so as to highlight the European heritage and maximize true prestige. The two companies Calvin Klein and Tommy Hilfiger are flexible to compromise on control and aim at exclusively maximizing revenues.
