One of the certainties of visiting an American department store—and stores in many other countries too—is the familiar offerings from some of the world's most recognized clothing brands: stacks of Levi jeans, shirts from Polo Ralph Lauren, collections from Liz Claiborne and, of course, lots and lots of Tommy Hilfiger. All this sameness is a big problem for the apparel business. Inevitably, woven labels related to those brands are also tremendously hit. Department stores are increasingly being squeezed by specialist retailers on one side and discount chains on the other. At the same time, prices everywhere are falling as many items of clothing become commodities. For the brands concerned, this loss of sparkle could lead to yet more consolidation.

One company rumoured to be a takeover target is Hilfiger, which despite annual sales of close to $2 billion has been struggling. The firm insists that it wants to retain its independence, and on August 4th appointed David Dyer as its new chief executive. Mr Dyer has plenty of retail experience to help Hilfiger: he built Lands' End into a highly successful mail-order and e-commerce business before selling it to Sears, Roebuck last year. At the same time, those who are specialized in manufacturing their woven labels get profits from it.

Most firms have already adjusted to global competition, which has seen a big shift in garment production to low-wage countries and a subsequent glut of cheap manufacturing capacity. Hilfiger is based in Hong Kong, where the eponymous founder, Mr Hilfiger, now the firm's chief designer, formed a partnership with Silas Chou, a member of a wealthy Hong Kong textile family, who helped the firm list on the New York Stock Exchange in 1992.

According to A.T. Kearney, the strongest defence against price erosion is to support a clothing brand, especially a mature one such as Hilfiger, with innovative products. Nike does this by constantly applying new technologies to sports shoes, for example. But garment accessories like woven labels, nowadays are highly appreciated for their inexpensive advertisement and image enhancement. To boost profits, the brand can be spread to other products, such as home furnishings, perfumes and fashion accessories. Hilfiger already does this through a variety of licensing agreements. But spreading the brand too widely can dilute its value.