Final answer:
The assertion that Tommy Hilfiger's success in the 1990s was due to a closed feedback system is false; the brand actually thrived by closely engaging with the youth market and staying attuned to their preferences and trends. Teenagers' fashion choices are often influenced by the desire to conform to peer groups rather than other factors like cost or parental guidance.
Step-by-step explanation:
The statement suggesting that Tommy Hilfiger's success in the 1990s was due to maintaining a closed system with respect to young consumers' feedback is false. In reality, the brand was known for its open approach to incorporating consumer feedback, making extensive use of research in places like music clubs to stay in tune with the preferences and trends of the youth market. This approach was in line with broader patterns in the fashion industry at the time, where brands like Abercrombie & Fitch used targeted imagery and branding - such as the "casual luxury" of an East Coast yacht club - to appeal to specific demographics.
Teenagers often follow social norms in buying clothes to fit in with peers rather than primarily to save money or follow parents' rules. Brands like Tommy Hilfiger capitalized on this by producing designs that resonated with youth culture, which is heavily influenced by music, media, and what popular kids wear.
It's also worth acknowledging that during the 1980s and beyond, companies in the fashion industry, such as Levi Strauss & Co., faced increasing competition and adopted various strategies to stay competitive or enhance profitability. This trend had a profound impact on American manufacturing and contributed to broader economic shifts, like the growing US trade imbalance.