How did this brand build its success story and get ahead?
We will study the company, its financial results, its positioning, pricing and global strategy to know if ABERCROMBIE & FITCH could be assimilated as a luxury brand, and try to answer to the main problems:
Today, Abercrombie & Fitch is an independent group and has set up 365 Abercrombie & Fitch stores in USA, Canada and UK.
Moreover, three other brands were born: Abercrombie for boys and girls aged between 7-14 (1998), Hollister for 14-18 (2000) and Ruehl for post-college customers (2004).
Abercrombie & Fitch is one of the most successful specialty retailers in operation today.
Abercrombie & Fitch sales points are shopaholic paradises.
Sales have never declined in the last ten years.
Since 1998, after brand's independence from the Limited, the company always increased its profits. Every single year sales takes off.
In 1998 Abercrombie & Fitch global sales were about 805 million dollars.
Last year, the brand made 3,320 million dollars.
[...] Marketing strategy and techniques SWOT analyze Internal study Strengths Weaknesses financial support (stock - large organization exchange) - Retailing only in USA, UK and large target market Canada customers loyalty External study Opportunities Threats international market - competition expending market in the USA - a part of the clothing range is expending market in Europe and non-adaptable to the foreign market Japan (mostly European and Japanese) flexible clothing range Segmentation, positioning and pricing Abercrombie & Fitch has chosen a strange compromise between a luxury and a middle range strategy. [...]
[...] The downside to this is that Abercrombie & Fitch is a very creative brand, but we can't pass over the fact that products have many similarities with other brand's products. IV. The costumer's profile - Abercrombie & Fitch costumers are mostly young people - Big spender - High social class - Abercrombie & Fitch costumers are not volatile compared to the other brand costumers. - Costumers are loyal - The target is the youngster aged 18-22 years, but actually, Abercrombie & Fitch designed casuals are bought by all generations. [...]
[...] The story of increasing number of stores is amazing: In 1998, there were 158 Abercrombie & Fitch stores, two times more in 2001 and 365 today. III. Clothing and accessories As we can imagine, Abercrombie & Fitch proposes a huge range of clothing manufactured in the US, which doesn't follow the fashion, but creates it! The Abercrombie & Fitch style is definitely classical and typically American. From the beginning, designers have created common clothing for everybody. At this time, just a small part of the range of product followed the fashion trends. [...]
[...] Abercrombie & Fitch moved to Madison Avenue and 45th street in an entire twelve-story building, making Abercrombie & Fitch the largest and most impressive outdoor gear and sport gear in the world. 1927: Famous costumers of Abercrombie & Fitch. Outfitted Charles Lindbergh for his historical flight across the Atlantic Ocean. 1978: Oshman sports. Abercrombie & Fitch acquired by Oshman Sporting goods which struggled to develop a strong identity. 1988: The Limited bought Abercrombie & Fitch. Abercrombie & Fitch was purchased by The Limited, Inc. [...]
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