American Apparel and Abercrombie Losing Their Cool
Originally published June 23, 2014 here.
Short piece by Vanessa Friedman on the parallels between Abercrombie & Fitch and American Apparel, both of which did very well and then plummeted. She points out that most of the consumers who shop at these stores were likely unaware of the unsavory comments and/or conduct of their CEOs. She notes that consumers have been turning away for another reason. The brands are not as appealing as they used to be.
I have a few theories as to what may be happening. First of all, both Abercrombie and American Apparel have stuck to the same game plan from an advertising and branding standpoint for quite some time — over a decade for American Apparel and Abercrombie looks about the same as it did when I was in high school. While it can make sense to stick to a defined brand DNA and a set of core values, when operating on the trendier side of fashion (vs the more classic side) it’s necessary to refresh the look. That’s possible even while sticking to the brand’s core values. One could argue that Abercrombie is more classic, than trendy. I beg to differ. While it is a preppy take on fashion, it is still largely trend-driven fashion.
It’s important to refresh brands because target cohorts change over generations and so does the market. Gen X teens and 20-somethings were different from Millennial teens and 20-somethings. Millennials seem to be much more willing to call b.s. on brands who are trying to hard to appeal to them. They are also even more inured to “sex sells” than their counterparts from a generation ago. They crave authenticity. Moreover, Millennials have a lot more choice in where they shop than Gen X-ers did. There is much more competition for the teen and 20-something cohort than there was twenty years ago. There is an H&M and Forever 21 in most major malls in the US it seems. The basics sold at these places rival those at American Apparel and at a lower price point, which matters to the recession battered market.
American Apparel and Abercrombie were businesses built on being irreverently cool. While becoming cool for a period of time amongst a fickle cohort is achieved by many, staying cool across generations is a different challenge that requires self-reflection and the ability to innovate.
Originally published at https://www.tumblr.com.
