Sommaire
Company’s Overview 2
The Brands: 3
Abercrombie kids 3
Hollister 3
Gilly Hicks 3
The Product 4
Pricing Position 4
Competition 4
Porters Analysis of the competition: 6
Advertising Policy (Promotion) 7
The in store experience (Place): 7
SWOT 8
Weakness 8
Strengths: 9
Opportunity 10
Threads 10
The conditions for the Company’s exportations: 11
PEST: 12
POLITICAL: 12
ECONOMICAL 12
SOCIAL: 12
TECHNOLOGICAL 13
Economy of Brazil 13
Introduction to Brazil and it’s market 14
Appendix: 15
Company’s Overview
The American brand Abercrombie and Fitch (ANF) is a retailer selling fashionable and luxurious sportswear clothing, and accessories.
Headquartered in New Albania, Ohio; as to February 28, 2012 the company holds 1,045 stores from which 294 are Abercrombie & Fitch stores, 159 are abercrombie kids stores, 571 are Hollister Co. stores, and 21 are Gilly Hicks stores. Coming to near saturation in the American market with a preeminent domestic occupation, due to many competitors, for instance urban outfitters, or Tommy Hilfiger targeting the same segment, the trendy young pre-adults students. The company has exported its brand beyond American borders, to increase its turnover and conquer a new market where the All-American lifestyle is not well known, in the hope of becoming the leader. Established in 1892 by David T. Abercrombie and Ezra H. Fitch, the company now holds five division brands. Abercrombie and Fitch; Abercrombie kids; Gilly Hicks (Sydney only); The Hollister Co, for ages from 7 to 30.
Primarily, focusing on its image the company has created an oxymoron associating Nudity with clothing. This particular image is what they are known for among teens and young adults throughout the world....
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...US SPORTSWEAR RETAIL BRAND;
Exapanding their cuurent brand line would be a competitive advantages
Appendix:
Name Federative Republic of Brazil
Land Area 8.514.877 km²
Estimated Population (2012) 196,655,014 inhabitants
Demographic Density (2012) 22.6 inhabitants per km²
Capital Brasilia
Key Cities based on population) Sao Paulo, Rio de Janeiro, Salvador, Belo Honrizonte, Fortaleza, Porto Alegre, Recife, Brasilia
Language Portuguese
Unemployment rate (2011) 6%
Currency Real (R$)
Exchange Rate (November 2012) US$ 1 = R$ 2.0907
GPD at current market (2011)
GDP per capita (2011) US$ 2.294 trillion (+2.7%)
US$ 11.800
Trade (2010) Exports = US$ 195.5 billion
Imports = US$ 180 billion
Balance = US$ 15.5 billion
Total trade = US$ 375.5 billion
STRENGTH SWOT
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Abercrombie and Fitch is an American retailer who has been facing many outstanding issues and is at risk of disappearing. For the past two decades, the company has been facing severe controversy. Abercrombie and Fitch has been long criticized for lack diversity and inclusion. The company excludes minorities and plus-sized customers from its stores. This controversy has brought many financial problems to Abercrombie and Fitch.
American Eagle Outfitters (AEO) differentiates from its competitors because it’s a leading global specialty retailer offering latest trends that are high-quality and affordable. The source of competitive advantage is the quality of their clothes and their environmentally friendly fabrics. American Eagle Outfitters is a high-quality and inexpensive brand of their two competitors Aéropostal and Abercrombie and Fitch. AEO centers in every category of purchaser such as kids, tweens, teens, and adults. American Eagle Outfitters has further stores open globally and their product line is more assorted than its competitors and its name brand and logo is known world-wide.
American Eagle Outfitters is a fairly new company but they are doing extremely well because they have a clear grasp of who their target market is. They posses a fresh new hip look with great quality clothing at a reasonable price for consumers (http://www.prism.gatech.edu/~gte201w/aeostrat.html). This is one of the main reasons why teenagers and young adults are so attracted to the company. American Eagle is aiming to appeal not only to the targeted 20 year old but also consumers between the ages of 16 and 34 years old. This will widen the gap between their major competitors because they are trying to appeal to more segments than just one. American Eagle seeks to be assessable, fashion orientated, and has a strong value proposition, which has allowed the company to thrive and take shares from competitors over the past five years. Not only is their clothing line very comfortable, bold and fresh, the store layout and atmosphere is also major key factors in American Eagle’s success over the recent years. AE also has a strong competitive advantage because of their short lead times and their ability to position themselves in high-visibility, high-profile locations in key markets. American Eagle’s cycle time is about five months from design to delivery, versus about nine months for The Gap and six months for Abercrombie. AEOS minimizes lead times by maintaining sourcing relationships with a few key manufacturers and producing much of the merchandise in North America, versus 9% for The Gap and a minimal amount for Abercrombie. AEOS has the ability to quick-source some of its simpler product categories in order to react quickly to sales trends. (http...
A&F Quarterly was a magazine-catalog hybrid periodical sold by Abercrombie and Fitch from fall 1997 to December 2003. Circulation for the Quarterly averaged one million to 1.2 million during the late 1990s. The publication, released four times a year, featured articles about college life, photo essays by Bruce Weber, and advertisements for the company's clothing. In addition to this, the company's 280-page book included nude young adult models in highly suggestive poses, as well as articles on sex -- elements apparently intended to boost the clothing retailer's brand among college-age customers.
Abercrombie and Fitch, a clothing company, that advertises, to the American young adult population, was founded in 1892 by two men; David T. Abercrombie and Ezra Fitch. David T. Abercrombie was born in Baltimore and was a former inventor and taper. Ezra Fitch was a successful lawyer. David convinced Ezra to become his partner in 1892, when the company was founded. By 1904 Abercrombie was the largest outdoor equipment and clothing store in the US. Today A&F is one of the biggest clothing companies, selling the “all-American” vintage look.
American Apparel’s retail stores are usually located in life style streets of local folk who look for the basics rather than the fancy midtown sites. also, the stores are located in college towns such as Gainesville, Fla., and East Lansing, Mich., home to the University of Florida and Michigan State University. It’s because of the company’s target market that is young urbanites who see themselves as unique instead of as part of a generic, main-stream fashion culture.
As the CEO of Abercrombie and Fitch, Mike Jeffries has turned the company into a multi-billion dollar brand by selling youth, sex and causal superiority, which gives way to the concept and emergence of an “imagined community.” The definit...
Belk Inc is one of the American mid-range, most sought after and the largest privately owned mainline department store company. It boasts of more than 300 classic fashion department stores mostly found in the southern states. Its outstanding dedication to diligently serving customers has earned it acceptance in sixteen states and sales totaling $3.5 billion in the past year. The rise of Belk has not been easy and its success has been inspired by the overwhelming and ever-swelling market in the southern states of the nation. The first store was established in 1888 by one ambitious man, Henry Belk in Monroe, NC with $750 in savings, a $500 loan, and $3,000 worth of goods taken on consignment. His passion and focus enabled
It is evident that today’s advertisements for teen clothing are neither healthy, nor ethical, to use as a way to attract teen consumers; however, companies are getting away with this behavior, because their effective and inappropriate advertisements are merely innuendos. The modern label placed on teens is said to be the primary contender for the cause of eating disorders, suicide, bullying, and depression. Fortunately, groups of teens are getting together to put an end to these unethical advertisements and the messages the ads give off to teens; because of their efforts, the amount of effect that advertisements have on teens now, may dramatically plummet sometime in the near future. In my opinion, it is crucial that us teens make a profound alteration to the way teen merchandise is advertised, which in turn will end the knavish behavior of clothing companies, and cease our judgmental society.
Therefore, American Eagle jeans are a much better purchase than Hollister jeans. So the way most Americans “get them britches on” is by shopping at American Eagle and not Hollister. Because they offer so many cuts, sizes, and variety, American Eagle is just a better option for the majority of Americans. So the next time you’re getting dressed up, and you want to tuck those jeans into some boots with the fur, shop at American Eagle and save yourself some money for the club!
On July 13, 2007, Abercrombie & Fitch Head Office based in New Albany, Ohio, United States of America, announced “its plans to expand its retail presence throughout Europe. The Company is in the process of securing locations in Italy, France, Germany, Spain, Denmark and Sweden and plans to identify additional key locations in the United Kingdom.” (Abercrombie & Fitch, 2007)
... However, they are highly revered respected in the community and part of that is because of the product that they make. Clothing is a symbol for status, a political statement, and a first impression.
Louis Vuitton, a French designer and entrepreneur quickly made a name for himself in the fashion industry by becoming Napoleon’s wife “personal box-maker and packer.” At the age of sixteen, Vuitton and his family started the legendary workshop by creating travel trunks and the famous unpickable locks in 1859 (Louis Vuitton, 2015). As the legendary brand continues to remarkably exceed both sales and expectations, Louis Vuitton as a brand strives for pure distinction and exclusivity.
Lululemon Athletic Inc. (Lululemon) is a retail company that specializes in athletic yoga-inspired apparel for active men and woman. This company is headquartered in Canada and was founded in 1998 by Dennis Wilson. Wilson’s passion was technical athletics which resulted in him opening a studio to design yoga clothing in 2000 in Vancouver. To help pay his rent, Wilson held yoga classes at night when the design studio wasn’t being utilized. By 2011, Lululemon’s yoga apparel was being sold in over 130 stores located throughout Canada, United States and Australia. With much success expanding into a global market, Lululemon’s vision was to evaluate the world from mediocrity to greatness. To achieve this vision, a strategy was developed with
Nike Nike is a common name used in most households in the world. Many sports figures and teams endorse Nike, and because they do, people have to have Nike products. Nike uses this major publicity to continue to push them to the top of their market, and uses many tools to achieve this goal. Nike uses their long history, financial statements, and financial analysis to continue to push them to the top and make them a better company. Nike History