With Hilfiger, Universal is hoping to further crank up its clothing business. In addition to a stable of clothing designers, Hilfiger works with Li & Fung, a Hong Kong company that sources billions of dollars' worth of consumer products and distributes them to retailers.
Universal's ability to scale its merchandise business may be limited to the number of artists it has with long-term mass appeal, said Eli Portnoy, who owns the Portnoy Group brand consulting firm in Los Angeles.
"Music tastes shift, and people like Justin Bieber disappear," said Portnoy, who noted that female movie stars and supermodels tend to have more staying power.
In addition, the joint venture will have to tread carefully when it comes to using Hilfiger's name to market its products, Portnoy cautioned. That's because the Tommy Hilfiger brand is owned by Phillips-Van Heusen Corp., which also owns the Calvin Klein brand.
"But is it smart for Universal to bring in Tommy for his expertise?" Portnoy said. "Absolutely."
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