INTERNATIONAL BUSINESS (BAP 72)
TAKE-HOME ASSIGNMENT 2013-2014
Abercrombie & Fitch was established in 1892, and originally was a retailer of outdoor and sporting goods. In 1976, it went bankrupted and was acquired by Limited Brands in 1988. Michael
Jeffries was nominated to become CEO in 1992, and he dramatically improved the status of A&F to be a global fashion retailer. Now the symbol of American style and beloved brand by many customers worldwide, Abercrombie and Fitch produces mainly apparel, fragrance and lifestyle goods targeting at consumers aged from 18 to 25. There are 4 sub-brands in A&F which are Abercrombie and Fitch,
Abercrombie Kids, Hollister and Gilly Hicks. Each sub-brand has its own characteristics and its positioning in the fashion market is slightly different. Abercrombie & Fitch is rooted in East Coast traditions and Ivy League heritage, it is the essence of privilege and casual luxury (Abercrombie and Fitch
Co. 2012, P. 3). Abercrombie Kids is for the kids who want to be like their older brothers or sisters and the core concept of it is casual and preppy looks. Hollister’s heritage stems from Southern California and was designed to represent cool beach style. Gilly Hicks is the newest and smallest brand in A&F made only for the girls’ clothes or underwear. With the opening of a flagship store in Canada in 2005, A&F started to enter the global market. Now it has 139 stores outside of the US, and it recently opened stores in Seoul, South Korea and in Shanghai, China to expand into the Asian market.
We chose Abercrombie and Fitch since we would like to see how successful this multinational apparel company can be by insisting its All-American style in different cultures. We wanted to explore its unique retail strategy and brand positioning as this brand is sought after a lot of young adult. Several controversial issues of A&F were the deciding factor in our choice of company.
Work Oriented Culture
Of all the methods
References: 5) Barrie, L. 2010, Abercrombie & Fitch sees opportunities in higher costs. [online] Just-style.com. Available at: http://www.just-style.com/analysis/abercrombie-fitch-sees-opportunities-in-highercosts_id109585.aspx [Accessed 18 May. 2014]. 6) Basu, C. 2014, The Advantages & Disadvantages of a Wholly Owned Subsidiary. [online] eHow. Available at: http://www.ehow.com/info_8627934_advantages-disadvantages-wholly-ownedsubsidiary.html [Accessed 18 May. 2014]. 8) Csimarket.com 2014, Abercrombie & Fitch Co. (ANF) Jan. 31, 2014 Sales per Country and Region, Annual Report - CSIMarket at:http://csimarket.com/stocks/segments_geo.php?code=ANF [Accessed 18 May. 2014]. http://safecosmetics.org/article.php?id=739 [Accessed 14 May. 2014]. [Accessed 18 May. 2014]. Available at: http://www.businessinsider.com/abercrombie-and-fitch-worst-controversies-20138?op=1 [Accessed 18 May. 2014]. 17) Marx, W. 2010, In Tokyo, Abercrombie Misses Its Mark. [online] BoF - The Business of Fashion. Available at: http://www.businessoffashion.com/2010/02/in-tokyo-abercrombie-misses-itsmark.html [Accessed 18 May. 2014]. 24) Vettoretti, A. and Huyen, H 2013, Vietnam Set to Increase Minimum Wages from December 31, 2013 [Accessed 18 May. 2014].