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Amandine Bensekhri

on 11 December 2012

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Transcript of Abercrombie

Abercrombie Kids Abercrombie & Fitch Gilly Hicks Gilly Hicks is the cheeky cousin of
Abercrombie & Fitch.
Inspired by the free spirit of Sydney,
Australia. It makes cute bras and undies for young confident girls.
It's an all-american brand with a Sydney sensibility. The Home Office It refers to the headquarters of the company located in New Albany, Ohio. It's a multi-million dollar complex. All the stages from merchandising to design are realized in this edifice.
Their main force is that they are able to react to emerging trends faster than any other retailer.
They established "fake" stores with up-to-dates assortments in order to see how plan the garments and how the stores will look like and feel to the customers.
Since 1998, Michael Jeffries is the chairman of the board, the chief executive officer and since 2008 Jonathan Ramsden is the chief financial officer, the executive vice president. The main inspiration of the brand come from the youthful all-american lifestyle.
"Abercrombie & Fitch is timeless, and always cool." The brand follows in the footsteps of Abercrombie & Fitch.
We can define the brand in some words such as popular, wholesome and athletic. Hollister fantasy of Southern California
inspired by hot surfers and beautiful beaches
young and sexy style
sense of humor Diverse culture throughout the organization to better understand the customers :
elaboration of a strategy to attract a more diverse customer
A&F values the differences of its associates and customers
creativity and innovation at the core of the brand because it helps to maintain the market position.
There were 9,000 employees full-time, and 76,000 part-time. A&F is an American retailer of casual wear and sportswear launched in 1892 by David T. Abercrombie and Ezra Fitch with a new approach of point of sale's marketing : the target market are males and females between the ages of 14 and 20 years old clothing. So, the inspiration of the company comes from the youthful all-American lifestyle.
They own 1,069 stores. Their presence in many mainstream malls is a full-force strategy to be in the teen market. Yet, there is no class target.
The A&F motto is "casual luxury". The back to school and holiday season is the busiest for the company because that's when the target market demand is at its highest.
Moreover, the company website is extremely easy to navigate.
And recently, A&F has released something completely new and never done before by the company for the upcoming days: they have created gift box sets of some popular items (for example, winter pajamas, and of course their popular fragrances).
Magazine ad and store promotion are both part of the A&F marketing strategy.
There are various brands under the A&F Company such as Hollister or Gilly Hicks.
"The Abercrombie & Fitch way of life" Asian market's expansion Diversity & Inclusion First, the models start by working in the brand's stores, and then they can be cast for A&F marketing campaigns.
"A&F is timeless and always cool." References The main problem is the counterfeit. Indeed, the A&F brand protection guarantee the highest quality all-American clothing but only if you buy it in their stores (US, Canada, or international stores) or on their websites. Otherwise, you can't be sure it is not counterfeit. They even track down them because because in their websites they appeal to denounce counterfeit. In fact, the counterfeiters also try to set up a trap for the customers online, copying the A&F original website. It's a real problem particularly on eBay. Here, a link to avoid counterfeit clothes : http://www.mohoyt.com/blog/2009/07/01/a-quick-guide-to-spotting-fake-abercrombie-and-fitch/ Yet, the negative point of this marketing strategy is that they bet on "sex" in order to sell their garments but it seems that sex is no longer selling for the brand. Nowadays teenagers are less and less seduced by this type of ads. Unfortunately, they don't have the capacity to innovate, to reach a new way to attract their main target market: teenagers. In fact, another element of their strategy are the quarterly catalogs shot by a top fashion photographer Bruce Weber but it was criticized to be a "soft porn". So, maybe they are going too far and they are losing their first customers with a well-determined profile such as different, indie and rebellious.
Meanwhile, even if the american and european market let aside A&F, the markets in China and Middle east are for their part, enjoying the new sale's stores opening particularly in Hong-Kong (over $1 million in its five days of trading).
I really recommend you to look at this short video : http://www.businessweek.com/videos/2012-08-22/abercrombie-and-fitch-soft-porn-image-not-selling#r=lr-fst Competitors One their main competitors is American Eagle and they took advantage of the financial crisis in 2008 to oust A&F because there are cheaper and more varied.
Others A&F competitors
Forever 21
Urban outfitters Even if the brand declares that their lost of a third of their market value is due to the recession, it is possible that it is in reality due to their non-innovating strategy, they don't care about the teenagers needs in the US or in Europe. Indeed, they had to close 71 US stores and they are going to close another 180 through 2015.
From now, their main objective is to capture the Asian and Middle East market in order to balance their loss in occidentals countries.
Moreover, we can find a link between this loss and the expansion of street blogs and social media because nowadays teenagers reject uniform, their styles as to reflect their entire personality so they don't want to look like others students from the Ivy League. Teenagers develop a more individual style in comparison with the past generations.
Religious group are also opposed to the brand.
The main problem is that after the economic downturn the brand didn't change its prices but now you can find similar clothes at $40 instead of $70. That's why a part of the customers are moving on to rival companies. Future markets reuters
google image
http://www.mohoyt.com/blog/2009/07/01/a-quick-guide-to-spotting-fake-abercrombie-and-fitch/ The luxury image of A&F is really appreciate by the asian customers whose incomes are increasing. Moreover, they love brands involved in fashion (such as Louis Vuitton) and now A&F. The Company has plans for growing in this region. Indeed, in 2009 it opened a flagship store in Tokyo and it has plans to add stores at up-market shopping locations in South East Asia. Dubai Shanghai Hollister is an exemple of corporate brand strategy, it means using a single brand for all products. The new products correspond to the brand identity so the customer is getting used to the characteristics of the brand, the target here is a faithful and loyal customer. If you like one of the garment, you will love the entire collection.
Some types of Hollister strategy:
determining objectives : clothes, shoes, body washes, body mists, lotions, deodorants, antiperspirants, perfumes, accessories, and an assortment of lip glosses, lip shines and lip balms
focusing on the target audience: ages 14 to 18 (teenagers): male and female.
analysing the market : Hollister has locations in Canada, United States, United Kingdom, Italy, and Germany.
-> the demand for different type of clothes is very high.
Hollister main competitors are TNA and Garage.
defining the company symbol: a logotype which is a seagull
elaborating a brand packaging when customers buy garments in the stores. Hollister Co. doesn't have a slogan because we can recognize the brand easily thanks to the seagull. Less effective marketing strategy Controversy brand'websites "sex sells" approach -> paradoxal strategy of selling nudity to sell clothes, debate about youth, marketing and sexuality in the ads. Obviously it's a way to create buzz for both haters and advocates. fabricated background story: in fact, the brand isn't Australian at all. Can we trust the brand? Here is a selection of Abercrombie garments: Boys Girls A&F shirtless Paris store opening! Flagship store on Paris

The first A&F store in Paris opened on May 19, and in order to celebrate this major event in the capital of fashion there were 101 shirtless male models from the streetlevel to the rooftops.
The store is located at 23, Avenue des Champs-Elysées.
The good news is that the store will continue to have shirtless staff members year-round.
The store is the first in France for the American brand, it is a 31,000 square-foot, divided in four-floor.
The particularity of this place is that there are items sold only in those locations.
Here are the pictures of the event:
http://cdn04.cdn.socialitelife.com/wp-content/uploads/2011/05/abercrombie-fitch-paris-story-opening-shirtless-models-05122011-10-435x580.jpg Successful company in merchandising The Company uses seduction management: even in the front of the store you can smell the branded perfume of A&F. It's part of the mechanism.
There is no front window but a sexy bare chest model at the entrance.
-> all the senses are fulfilled it is peculiar to A&F marketing strategy.
They used efficiently the marketing max with the 4P's (place, promotion, product, price).
When the consumers walk in the store they can go either left or right it separates boys and girls, and the first thing you can see if the new collection and at the end of the store all the articles are on sale. But even close to the cash register there are some products of the new collection to encourage the customer to buy more.
Moreover, plastics mannequins proposes a certain look , sometimes it is even items that aren't in the store to persuade the consumer to come back later.
Even if the consumer is aware of the seducing strategy which shapes the brand he will end up by making a purchase.
So, there are two objectives : one quantitative (push consumers to buy) and another qualitative (show the real identity).
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