Abercrombie & Fitch Country Report
International Business
“Casual Luxury”
Prepared by:
Rebecca
EVP Business Development
Prepared for:
Dr. Robert
CEO
Introduction
It is not surprise that our business has reached its full potential in the United States. Our earnings rose 40% as a result of our stronger margins and stronger sales abroad. Even though we have expanded internationally, A&F still needs room to grow. Revenue from international sales totaled $US1.4 billion in fiscal 2012, a 36% increase. One of the most promising markets for our retail line is Australia. One of our brands, Hollister, was inspired by the California lifestyle and it will be the first store we need to open there.
The Hollister lifestyle - young, fun, and laid back matches closely the lifestyle of Australia. Our brand's success is built around the in-store experience and is unlike any other retailer. Energetic associates help promote the brand and encourage customers to join them in the excitement of Hollister. Hollister fans have a lot in common around the world, regardless of what country they are in.
A main priority would be to focus on the most populated areas in Australia, which are the east coast. The cities include Sydney, Melbourne, Brisbane, Perth, and Canberra. Our research shows that online shopping is not a popular choice when trying to market our brands. Most people in with internet in Australia shop local brands, so we would be better off building our store in their major cities close to popular Australian stores.
We will set our pricing in line with the exchange rate at that point in time. We then would monitor exchange rates to ensure that they don't result in substantial swings to our customers, and adjust only if we believe needed. For example, we recently lowered our pricing in Canada to reflect the sustained strengthening of the Canadian dollar against the US dollar.
We will set our pricing in Australia using the same principles we've used to set our pricing around the
“Casual Luxury”
Prepared by:
Rebecca
EVP Business Development
Prepared for:
Dr. Robert
CEO
Introduction
It is not surprise that our business has reached its full potential in the United States. Our earnings rose 40% as a result of our stronger margins and stronger sales abroad. Even though we have expanded internationally, A&F still needs room to grow. Revenue from international sales totaled $US1.4 billion in fiscal 2012, a 36% increase. One of the most promising markets for our retail line is Australia. One of our brands, Hollister, was inspired by the California lifestyle and it will be the first store we need to open there.
The Hollister lifestyle - young, fun, and laid back matches closely the lifestyle of Australia. Our brand's success is built around the in-store experience and is unlike any other retailer. Energetic associates help promote the brand and encourage customers to join them in the excitement of Hollister. Hollister fans have a lot in common around the world, regardless of what country they are in.
A main priority would be to focus on the most populated areas in Australia, which are the east coast. The cities include Sydney, Melbourne, Brisbane, Perth, and Canberra. Our research shows that online shopping is not a popular choice when trying to market our brands. Most people in with internet in Australia shop local brands, so we would be better off building our store in their major cities close to popular Australian stores.
We will set our pricing in line with the exchange rate at that point in time. We then would monitor exchange rates to ensure that they don't result in substantial swings to our customers, and adjust only if we believe needed. For example, we recently lowered our pricing in Canada to reflect the sustained strengthening of the Canadian dollar against the US dollar.
We will set our pricing in Australia using the same principles we've used to set our pricing around the