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American Apparel

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hannah tan

on 21 April 2013

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Transcript of American Apparel

American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. THE GREAT AMERICAN UNIFORM A BRIEF HISTORY OF SUMMARY
AMERICAN APPAREL OVERVIEW
Mission Statement and Iconic Pieces
History
The “American Apparel Tribe"
Positioning Managing a Company with Conflicting Strategies CONFLICTING MARKETING STRATEGIES
100% Sweatshop free
Made in America?
Real People
Leveraging Sex with Advertising BRAND POSITIONING: CONFLICTING STRATEGIES 1. 100% SWEAT-SHOP FREE

American Apparel gives added value by creating a socially conscious business model. The brand is the largest Apparel Manufacturer in the USA with some of the highest paid apparel laborers.

Developed a brand loyal base group over the last 10 years of socially conscious consumers who are willing to pay a premium for ethical goods

In the eyes of other entrepeneurs, Dov Charney the CEO of American Apparel Is a hero for building a successful apparel company in the states without succumbing to outsourcing. "In the past decades, it has become the norm amongst the majority of US apparel companies to move their manufacturing operations abroad to third party vendors. American Apparel has kept it local. We are vertically integrated, and operate the largest apparel manufacturing facility in North America, right in Downtown LA. Though it's not the easy road to travel, this has always been our business model." -Americanapparel.net HOW? THROUGH VERTICAL INTEGRATION "Our average factory worker makes $12 to $14 dollars an hour -the highest pay worldwide for the manufacturing of apparel basics... For us, higher pay means heightened efficiency, a better and more consistent quality of work, stronger employee morale, and ultimately, retention rates of skilled operators." THE TRIBE •Young adults, between the ages of 20 and 35
•Both males and females
•City dwellers
•Students or with an income of less than $100,000/year.

American Apparel targets, young urbanites who see themselves as unique instead of as part of a generic, main-stream fashion culture and who have disposable income. American Apparel claims to be manufactured in the USA.
However:
•The company has recently been accused of employing illegal immigrants, and not following proper labor laws.
•The costs of producing in America are not mirrored by the retailing price of the merchandise. REAL PEOPLE According to American Apparel's 2011 report:
"Gross margin decreased to 53.2% from 55.6% due primarily to higher raw material and manufacturing overhead costs" American Apparel differentiates itself from its competitors by promoting real, multi-ethnic people in their advertisements.

•The consumer of American Apparel could be anyone.
•It often features customers, passerbys, friends and sales assistants as models.
•Specific aesthetic focused on style more than looks. "I might be able to get someone across the street to make me a coffee but it's nice to make coffee in my house."-Dov Charney "There is a year-long waiting list to get a job.
It all seems remarkably progressive, despite the fact that there are almost no white faces to be seen. And there are no unions A recruiting drive three years ago by a garment workers' union failed, thanks either to a lack of interest on the part of the American Apparel workforce or intimidation from the company, depending whose version of recent history you choose to believe."
- The Guardian They appeal to the conventional clothes buyer looking for a uniform that denotes their lifestyle or the one they aspire for. American Apparel has been known to build their brand identity around controversy. More specifically, controversy about their hyper-sexualized advertising that have even been banned in some countries for being too vulgar.
This type of over-sexualized communication contradicts their strategy of promoting real women while exploiting them at the same time. LEVERING SEX IN ADVERTISING American Apparel CEO, Dov Charney has been accused with several sexual harassment allegations by 9 of his former employees whom he also used in the advertisements. American Apparel has again fallen foul of the advertising watchdog with campaigns featuring 'gratuitous' images and the sexualisation of models who appeared to be under 16 years old. uses multi-ethnic models chosen to be pretty and real not unblemished and perfect representing a realistic standard for beauty. FINALLY.... “Move from trashy exploitative advertising into a classier aesthetic may help disconnect charney’s actions from the brand to remind people that American apparel’s core mission is to provide fashionable garments in an environment that fosters fair labour practices. “- Sundar Garapathy, The Guardian "...We don't have to do things this way, we just believe it's the right way."- Dov Charney references Alossi, Rich. “Inside American Apparel: 4,000 Downtown Employees and Counting.” Angelenic Online Magazine. 19 June, 2008.
Baker, Linda. “Made in the U.S. of A.?” Salon.com. 11 February, 2004.
Clark, Andrew. “Rebellious Underwear Firm Sold for $382M.” The Guardian. 19 December, 2006.
Margolis, Sharon. “It’s OK to Like American Apparel.” Beanstockd News. 18 July, 2008.
Meyer, Kevin. “A Visit to American Apparel.” Venture Hacks Blog. 8 January, 2009
Sage, Alexandria. “U.S. Garment Maker Takes Stand on Immigration.” International Herald Tribune. 28 October, 2008
Vernon, Polly. “Label of the Year: American Apparel.” The Guardian. 30 November, 2008.
“What Does AA Do for Its Workers” American Apparel Online Employment Document. Not Dated. Hannah Tan
Ylenia Swierk CONCLUSION
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