The case Abercrombie & Fitch (2007)

Résumé du document

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.

Extraits

[...] The merchandising is nicely customized. Abercrombie & Fitch: people like working for it! It's the same old story, sellers have no attractive basic-salary, but one advantage is that they can get bonus and commissions. Another benefit is that sellers are proud of working for a successful company. They have a better working environment and sometimes good colleagues. 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. [...]

[...] 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. Now, they try to make a compromise between fashionable and classic clothing. Abercrombie & Fitch brings out a limited collection 2007-2008 which is really fashionable and creative! The Limited series are more expensive but well designed, prestigious and trendier with the same high quality. [...]

[...] People can offer it for a birthday or for any other occasions. Abercrombie & Fitch gift card is a real gift. It's exceptionally attractive and well designed; people who receive it can use it everywhere: in-store, on-line or with catalog orders. Today, gift cards represent lot of brands and an excellent way to make “extra-sales”. It's also an exceptional marketing tool. E-business : It's important to consider the e-business opportunities. The company's website is well designed and it attracts many customers. [...]

[...] Today, Abercrombie & Fitch has branches in Canada and in UK. As mentioned in the SWOT analysis, Abercrombie & Fitch could make investments and open shops all over the world. The international potential is exceptionally significant. This company has established a very efficient business, a popular brand and a well organized group. Abercrombie & Fitch sticks with increasing its market shares in addition to minimizing the competition. The brand always tries to improve its strategies, in order to build up a stronger image and promote the products, through a classical and an open communication. [...]

[...] became Abercrombie & Fitch. The store was incorporated and the name was officially changed in Abercrombie & Fitch. Ezra Fitch believed that the future of the business lay on expansion and in bringing the outdoors to more of the general public. He wanted the store to have the feel of the outdoors. 1909: the first catalog was published. Ezra Fitch published a 456-pages catalog and sent 50,000 copies all over the world. 1910: Abercrombie & Fitch introduced sportswear for women. [...]