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SWOT Analysis of Hollister Co.

By: Jessica Gray, Mehrosh Hasher,
Lydia Russo, Rachael Ware, and Desiree Urban
October 4, 2009
AA 381 Fashion Buying

Introduction:

Hollister Co. was launched by Abercrombie & Fitch Company CEO Michael Jeffries in July 2000, and is a lifestyle brand that markets apparel and fragrances reminiscent of the southern California way of life (Palmer, 2009). Hollister Co., whose clothing is known for their signature seagull logo embroideries, has become widely recognizable due to its success in creating a strong brand image (Palmer, 2009). Hollister Co.’s retail stores, featuring only its own private label merchandise, are usually located in malls and generate significant traffic due to its unique atmosphere complete with ultra-dimmed lights and blaring popular music (Palmer, 2009). The brand’s target market consists of both males and females between 14-24 years of age (Palmer, 2009). Hollister Co. is known for the model-like staff it employs, and the sensual advertisements and store décor that accompany them (Palmer, 2009). Their clothing reflects this ideal, running in notoriously small sizes and only consisting of a very limited collection of casual beach-ready graphic t-shirts, jeans, thermals, swimwear, leggings, shorts, and sweatshirts (Palmer, 2009). Though Hollister Co. has recently been suffering large net losses, it has ranked first place for the Teen’s Top Clothing Brand for four consecutive seasons since 2007, and has generated over 1.6 billion dollars in sales in that same time period (Palmer, 2009).

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Hollister Co.’s Target Market (Quantcast, 2009)

S: Strengths This section will focus on Hollister Co.’s strengths as a brand, business, and retail store. We will identify and evaluate the company’s strong points in various aspects of their marketing, sourcing, and business planning