In the United States, Hilfiger traditionally relied mainly on wholesaling to about 1,800 department stores many of which contained stand-alone Hilfiger departments. It has stayed away from chains considered more low end.
when entering Europe. Because the company succeeded in the United States.
Hilfiger's CEO has described the U.S. market as one of concentration (sending a lot to department stores) and the European market as one of fragmentation (sending small amounts to small stores that carry select pieces), European operational costs are about three times those in the United States because of this more fragmented retail and wholesale system, the margins at the final consumer level in Europe run from 50 to 100 percent higher than at home, with the result that prices for Hilfiger merchandise are much higher in Europe.