Liz Claiborne, Inc. is a New York-based designer and producer of women's clothing, the largest such producer in the world. The company markets a complete line of sportswear, professional clothing, costume jewelry, accessories, and cosmetics under different names and also a line of men's sportswear.
Liz Claiborne occupies a particular niche in the clothing trade. The company's clothing is what is known as "accessible" rather than "aspirational." The clothing is thought of as well-designed and functional but definitely not upscale. In 1986 the company became one of the Fortune 500, one of only two companies started by a woman to achieve that level. The company's best year was 1990 when it shipped 60 million items to 9,000 stores in the United States, Canada, and Britain. Over the past decade, sales have increased at an annual rate of 36 percent, reaching nearly $2 billion; profits have increased annually at 42 percent to $203 million. All this was achieved during a period of recession, and the company has in fact benefited from the recession to become the most powerful brand in the business. This is because the clothing with this label is professional in appearance and comparatively low-priced.
In the 1980s, the company changed from a basic sportswear business to a multifaceted fashion house. The company had only one division 12 years ago, while today it has 19. The company's original business was regular-size women's sportswear, and last year less than 45 percent of sales were in this line, with the remainder in dresses, accessories, fragrances, large and petite clothes, and menswear. These latter are all lines created in the last ten years (Better, 1992: 68, 70).
The company built its reputation by selling affordable career clothes to stores like Macy's and Bloomingdale's. The company was founded in 1976 by Liz Claiborne and three partners. The company went public in 1981, increasing sales almost twentyfold i...