...RCOLabor Practices: The history of the company Abercrombie & Fitch is also famous as David T Abercrombie and Ezra Fitch founded A&F on June 4th 1892 in New York. The company set up around 1055 store locations around the world and sill expanding with 200 locations in United States alone. Most of their factory work for Abercrombie & Fitch is done in Bangladesh. The company uses child labor in their factories to produce their clothing. They have no benefits or access to healthcare and are paid very little or not at all. They work long hours in dangerous working conditions. Thus, in an Alta Mode factory in the Philippines, all more than 100 workers sought to form a union, and they were all placed on leave. The Abercrombie supplier even filed criminal charges against all of the factory workers. To this reasons, Abercrombie & Fitch is currently in the 2010 Sweatshop Hall of Fame. They chose that country to set up most of their land and cheap labor. As well as the fact that the country is poor, so people will have no choice but to work there in order to survive. There is nothing stopping them since there are no laws against sweatshop and child labor in poor countries. However, if they opened a factory in the United States, child labor would not be allowed due to all of the laws. In my opinion, I think it would be very hard for citizens to fight back against the injustice because in foreign or poor countries sweatshop are hw the people make money and how they buy food...
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...ABERCROMBIE AND FITCH OVERVIEW Abercrombie and Fitch Co. (ANF) is a specialty retailer that operates stores selling casual apparel, sportswear apparel, personal care products and accessories for men, women and kids under the Abercrombie and Fitch, Abercrombie, Hollister and RUEHL brands. With a customer base that is primarily under thirty years old, ANF was established in 1892 by David Abercrombie and Ezra Fitch. ANF operates in the US, the UK and Canada and is headquartered I New Albany, Ohio with over 20,000 employees. As a “near to luxury” retailer, ANF operates in an apparel industry which straddles high to low end merchandise. Its’ main competitors include : American Eagle, Aeropostale, Gap and J- Crew. Their focus on capturing a young market has created a rivalry, which forces them to be innovative and creative in delivering fashionable mechandise. As a result, their competitive strategy involves not only marketing their products through stores, but via catalogs and e- commerce activites. SWOT ANALYSIS, ABERCROMBIE AND FITCH A scan of the internal and external environment is essential in any firm’s strategic planning process. A SWOT analysis defines the internal and external environmental issues with which a firm must address in its strategic planning process. This type of analysis specifies the internal and external factors that are favourable and or unfavourable to the firm achieving its business objectives. It guides the firm in matching its resources and other...
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...Abercrombie & Fitch Sadarya McArthur Strayer University I. Identify and describe the greatest environmental threats that have immediate implications for A&F. A. Lack of Variety A&F was known for its lack of variety. They were known for hiring males and females with a certain kind of style. You had to look a certain way to be an employee and most of all you had to be attractive. Females had to wear makeup to enhance their features and males had to be clean shaven with no mustache or any facial hairs. They were sent to only white fraternities and sororities to recruit them for work. They only displayed posters of attractive white models. This was a threat to the companies reputation. B. Counterfeiting Asian factories made imitations of A&F products. Local authorities seized 300,000 pairs of fake Abercrombie jeans worth $20 million in a raid at a Chinese warehouse in 2006. The retailer had to hire a former FBI agent to conduct investigations of counterfeiting overseas. This clearly affected the sales of A&F. They could not compete with their merchandise being imitated and sold at a lower price. C. Legal Issues A&F had many legal problems. They were sued for failing to pay overtime wages to employees when they were required to work 50-60 hours a week. In another law suit nine plaintiffs sued the retailer for discriminating against minorities in its hiring practices and job placement. It had only ...
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...Identify and describe the greatest environmental threats that have immediate implications for A&F. Abercrombie and Fitch do not fit the image of being a company that is diverse. The store seems to focus a person’s appearance rather than what qualifications the individual has that will help to increase the company’s profits. They seek to find individuals who capture what they believe have the all American look. When entering the store there are photos are young attractive white men and women who appear to be physically fit and attractive. The brand labels as they are called fit that same picture as well. The store does not show a diversity when it comes to other races being employed there or items of apparel that would bring other races into the store to purchase their products. Employees are handpicked by this company both by going on college campuses and getting young attractive white men and women or they are chosen when they come into the stores to shop. The employees must agree to wear their make up a certain way, their hair has to look a certain way, and they have to purchase articles of clothing from the store to wear while they are at work as well as when they are not working so that they will display the look of the store at all times. The employees that are in the back stock areas of the stores are usually of other ethnicities, these individuals are not allowed to be on the sales floor or at the cash registers. Having a bad reputation for discrimination is not something...
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...Abercrombie and Fitch Case Analysis MGT625 April 11, 2012 Elizabeth Payne Abstract Abercrombie and Fitch (A&F) is a typical mall front store. They have been in the business for a century and are not going anywhere. A&F sees their fair share of mock items and lawsuits. However, through it all, A&F has made it to be successful, overcome threats, and open similar chains to target a wider range age market. Introduction Abercrombie & Fitch was founded in 1892 as a unique clothing store. Over the century in business they have made a distinct target for young adults. The fashion giant specializes in apparel for ages 18 through 22. “The 118-year-old retailer has been acknowledged for operating a top-notch internal system that expertly managed transactions, communicated with vendors and streamlined its supply chain operations to fulfill assortments across more than 1,000 stores,” (Amato-McCoy, 2011, para 3). The brand mainly produces casual apparel; anything from jeans to tee-shirts, summer dresses, and flip flops. They are iconic to the American young adult population around the globe. A&F is primarily found in the USA but has ventured into other global markets. The company has been praised and criticized for their marketing approach and brand style. Environmental Threats A&F faces environmental threats based on the nature of their business. They are in the business of selling and marketing clothes to young adults. Other well-known...
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...Abercrombie & Fitch is a retailer of preppy clothing and accessories including cologne and perfume for young college students. In 2006, Michael S. Jeffries, the CEO of Abercrombie & Fitch, made public comments that eventually doomed his career and tarnished the brand of this company. In an article in Salon magazine, he stated during the interview that his company does not make or market clothes for unattractive people. These spiteful remarks resurfaced in 2013 and the public backlash went viral. Due to the negative publicity and falling sales, Michael S. Jeffries retired from his position as Chief Executive Officer on December 8, 2014. Prior to his public statements in 2013, anyone could walk in an Abercrombie store and smell the heavy fragrance...
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...Abercrombie and Fitch: International expansion external and internal analysis Name Here Business Mgmt Name Here Date Here Executive Summary This case study was identified to examine why international sales volume of Abercrombie and Fitch have increased over the past three years and to recommend further international expansion to increase sales volume. The research draws attention to the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch’s net sales. The shares of international stores and direct-to-consumer net sales were very small in comparison. Over the next two years the US stores decreased net sales percentages while net sales increased. Further investigation reveal that the US market shrinkage in terms of overall company net sales percentage coincided with the increase in international sales and direct-to-consumer sales and the overall company net sales percentage over the same time period. Since the economic downturn in the US economy in 2008 the disposable income for Abercrombie and Fitch clients appeared to decrease. Additionally individuals were utilizing disposable income for other items such as technology, cell phones and other gadgets. These two items appeared to be the major causes of the decreased company percentage in net sales of Abercrombie and Fitch in the US. During the same two year period the international stores and direct-to-consumer net sales increased dramatically. This was an increase of 342% for international...
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...Executive Summary: Abercrombie & Fitch, American Eagle, and Urban Outfitters are considered member of the Family Clothing Stores industry, an industry that was hit hard by the economic crisis. Abercrombie & Fitch and American Eagle have similar growth models of expansion through new stores and markets and have seen similar growth and loss in revenues over fiscal years 2005 to 2009. ANF and AEO are in direct competition for the teenage consumer market and have launch competing brands, AEO’s Aerie in 2006 and ANF’s Gillyhicks in 2007, during the five year span. Urban Outfitters has a different marketing strategy that involved expanding brands sold within their current stores. They have seen significant growth in both sales and shareholder value over fiscal years 2005 to 2009, even through the economic crisis. Industry Overview: Abercrombie & Fitch, American Eagle, and Urban Outfitters are all a part of the “Family Clothing Stores” industry. This industry was comprised of 92,400 total clothing stores at the beginning of the analysis in 2005, and had estimated sales of $77.2 billion in the United States. The Family Clothing Stores industry consists of specialty stores (22% of the market), discounters (19%), department stores (17%), off-price stores (7%), mail order (6%), outlets (4%), and other stores (7%), with all three of the companies researched included in the specialty stores category. Research and technology are major players in this industry as quick distribution and...
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... Abercrombie and Fitch ( ANF) Company overview Description The company incorporated in Delaware in 1996 . Abercrombie and Fitch is an apparel retailer specializing in trendy merchandise for young men , women , and children. The Adirondacks supply a clean inspiration to this peppy , youthful all American life style . The company 's strategy is to offer multiple styles of clothing for young shoppers . The portfolio consists of Abercrombie and Fitch , Abercrombie kid , Hollister , and Gilly hick. Each brand targets a different general style . The company has positioned itself as a one stop shopping place for the entire family. In the other hand , the company maintains the same styles and offerings on their e-commerce sites. As of January 28, 2012, the Company operated 946 stores in the United States and 99 stores outside of the U.S. The Company’s fiscal year ends on the Saturday closest to January 31, typically resulting in a fifty-two week year, but occasionally giving rise to an additional week, resulting in a fifty-three week year. (Fiscal years are designated in the consolidated financial statements and notes by the calendar year in which the fiscal year commences). The Company’s in-store marketing is designed to convey the principal elements and personality of each brand. The store design, furniture, fixtures and music are all carefully planned and coordinated to create a shopping experience that reflects the Abercrombie & Fitch, Abercrombie kids...
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...Abercromie & Fitch Abercrombie and Fitch Co. (« A&F ») is an international fashion retailer selling apparel, fragance and luxury products to young customers. The brand describes itself as « casual luxury ». They developed a strong brand image based on provocative communication and specific in-store experience that fits with the cool lifestyle it promotes. However, sales have been dropping for years and do not seem to be going in the future. In 2013, the firm closed about 220 mall stores and entering December 2014, profits were expected about $106 milions, less than half of what they had been in 2012. Fitch’s performance is declining fastly, and it can be explained through internal and external factors. Some of these factors include lack of sustainable competitive advantage, public relation issues that affected the brand’s identity and image, rise of fast fashion competition and its struggle with its brand position and pricing while the consumers’ preferences are changing. Through examining these various elements, it is clear that Abercrombie and Fitch must take a diverse approach in order to revitalize its brand and maintain profitability. First of all, one of the main internal issues that led to Fitch’s decline was their lack of sustainable competitive advantage. Indeed, A&F views brand image as its most important asset, and their postioning enabled them to set premium prices on their apparel. They lost their audience and brand image these past years ; in...
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...Abercrombie and Fitch Abercrombie &Fitch is an American fashion retailer, that sells what they call « casual luxury » apparel for men, women and children under five concepts Abercrombie & Fitch, abercrombie, Hollister, Gilly Hocks and Ruehl No.925, with the main target group being teenagers. From being just one store, the brand prospered to be one of the strongest in the speciality retail market, and now consists of over 1100 stores mainly in the US and Canada, but also in the UK, Italy, Japan, Germany and Spain. They will now expand to even more countries with plans to open up in France, Sweden, Croatia, Denmark, Ireland and China. Abercrombie & Fitch was founded in 1892 in New York by David T. Abercrombie. In the beginning, outdoor and sporting equipment was sold in the one and only store located in lower Manhattan. Ezra Fitch was a lawyer that was dedicated to trekking, who convinced David Abercrombie to let him become a partner in 1900, and the name was then changed to Abercrombie & Fitch. The relationship between Abercrombie and Fitch was not very good, and in 1907, Abercrombie left the company. In the 1960s A&F went bankrupt, and was purchased in 1988 by the Limited Inc, that developed the company to be the lifestyle brand it is today. The image of this brand is being an internationally known near-luxury lifestyle concept. Abercrombie & Fitch is a fashion company, and its success lies on its ability to anticipate new fashion trends and adapt...
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...Not only is being thin praised in magazines but also in some clothing lines. A clothing line that I have in mind is Abercrombie and Fitch (A&F); Mike Jeffries, CEO of Abercrombie and Fitch said, “In every school there are the cool and popular kids, and then there are the not-so-cool kids. Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely, those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don’t alienate anybody, but you don’t excite anybody, either.” Basically what Mike Jeffries is saying is that he...
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...Abercrombie & Fitch Executive Brief of External Environment From 2011 Annual Report Company Profile: Specialty in clothing retailer; operate store and direct to consumer operations; under Abercrombie & Fitch Abercrombie kids, Gilly Hicks, and Hollister brands; 1045 store in North America, Europe, and Asia. $3.5B net sales; 85,000 associates; HQ: New Albany, OH. PESTLDG Analysis Political/ legal Donation to lobbying of $120,000, issue health care reform. Abercrombie & Fitch does not give a many contributions to lobbying. This could be because they will like something change in the Obama Health care law. Abercrombie & Fitch is no estranger to legal problem. In 2002 has two pulled a t-shirt that said “ Wong Brothers Laundry Service – Two Wongs Can Make It White” An Asian American student at Stanford University organized a successful boycott. In 2009, they settle a Discrimination lawsuit in 2009 for $40 million dollars to thousand of minority plaintiffs claimed that African American, Asian, and Hispanic workers were steered to the backroom instead to the sales floor. In 2008, an assistant manager filed a lawsuit against Hollister chain because she was asked to wear short skirt to keep with acceptable work attitude. This can damage the company image. Abercrombie & Fitch No Stranger to Look related lawsuit. In 2008, Muslim teenager was told during an interview that her head scarf would violate Abercrombie & Fitch’s strict but secretive “ Look...
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...況，消費者對於消費方式的改變，使得成衣市場受到相當大的衝擊。以往採取大量製造、降低成本的生產模式，已不再合乎現代消費者的需求。 有別於其他業者，Abercrombie & Fitch (以下簡稱A&F)的目標客群鎖定「18歲到22歲，外貌與身材出眾的白人」，也堅持不賣大尺碼的衣服。商品定位在「休閒奢華」的運動服飾。此外，其廣告模特兒甚至店員全都是外貌出眾的年輕男女，一方面雖然成功的建立獨特的品牌文化，卻也招來許多批評和糾紛，其中包括種族歧視和員工待遇等問題，同為美國服飾品牌的Tommy Hilfiger就曾因為歧視華人而吃上官司，而2005年以前的蘋果也是強調市場區隔的經典個案。 但近年來，A&F積極在美國以外的地方開拓市場，甚至在亞洲開設分店。原先的品牌定位和市場區隔，似乎有了新的定位。而轉變背後的原因和過程以及未來的市場策略，包括消費者心態對於商品定位的影響等，成了我們主要研究的動機和方向。 二、公司簡介 A&F，美國休閒第一大牌，是當今年輕人最青睐的品牌，也是風靡美國大學生的品牌之一。1892年創立于美國紐約的A&F，已是美國本土的百年品牌，目前旗下共有Abercrombie & Fitch、Abercrombie Kids、Hollister、Gilly Hicks四個子品牌。 A&F的服裝在簡約的款式中做出有趣的創意設計，以高格調、高質量及超清新的美國街頭休閒風格為出發點，並站在年輕人的喜好角度，用音樂、運動及簡約款式來表現服裝的內涵，這樣的潮流由美加各地不斷漫延開來，深受歐美和亞洲青少年喜愛，其標誌性十足、誘惑力十足的美式形象風行全球，成為全球時尚的新指標。 Abercrombie & Fitch Co. (簡稱：A&F) | 創立時間及國家 | 1892年6月4日成立於美國紐約曼哈頓 | 代表人物 | David Abercrombie (大衛·亞伯克隆畢)─創立者Ezra Fitch (埃茲拉·費區)─共同創立者Michael Jeffries (麥克·傑佛瑞斯)─CEO兼總裁 | A&F公司總部 | 美國俄亥俄州新奧爾巴尼市 | 股票代號 | NYSE：ANF；為上市公司 | 產品類別 | 男、女休閒裝、運動裝、內衣 | 旗下四大品牌 | Abercrombie & Fitch、Abercrombie Kids、Hollister、Gilly Hicks | 公司網站 | www.abercrombie.com | 三、公司願景與使命 1.公司願景(vision)： A＆F對所有利益關係人說明公司願景： 「品牌」是我們的生活方式，是我們關注的焦點，也是成長及與維繫顧客間的橋樑，並非短時間內就能達成成效。但當冠上A＆F這個標籤，它可以幫助我們吸引來自全國各地最有才華的年輕人，使我們有能力發展、創造出無窮的增長機會以確保長期盈利能力，並且提升產品的內在價值，快速穩定的成長並提供方向，以回應消費者。 2.公司使命(mission)： A＆F的使命側重於提供並推崇經典美式休閒生活方式的高品質商品。 四、目標客群定位 A&F旗下有四個子品牌 Abercrombie & Fitch、Abercrombie...
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...1. What impact had Abercrombie and Fitch Co.’s foundation had on the company today? 2. Examine the branding of the high fashion clothing market in order to answer: a. Which marketing technique(s) does Abercrombie and Fitch use? * They don’t use third party advertisements, instead: * They hire employees that fit the brand and use them as ambassadors to promote the brand * Focus on the in-store experience (cologne, lighting, look of the store, how the employees dress and act, etc.) b. What makes their strategy different from their competitors? * No third party advertising * Very specific target market, focusing on “cool, good looking people” * Through the use of very exclusionary marketing tactics, clearly stating that many people are not meant to wear their clothing * c. How would you interpret the success of their strategy? * Were able to dominate the market and become a leading brand through the use of unique marketing strategies. * Direct to consumer sales have nearly doubled since 2008. d. Discuss Abercrombie and Fitch’s decision to close domestic stores * Closed 20% of stores domestically in the U.S., in aging malls where their stores were under performing. * The reason for these closures was that the stores were no longer aligned with the desired brand image. The goal of the closures was to elevate the brands overall image and boost profitability. * 3. Discuss...
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