ABERCROMBIE & FITCH CO.
AGENDA
Company Overview Business Description History Industry and competitors Unique Sales strategy
COMPANY OVERVIEW
Specialty retailer that sales casual apparel Operates under 5 brands: Abercrombie & Fitch, Abercrombie Kids, Hollister and RUEHL and Gilly Hicks: Sydney brands. The company operates in the US, Canada, UK, & ASIA Operates 1045 stores worldwide (February 2012) 80,100 employees
What
Abercrombie and Fitch brands are you familiar with?
ABERCROMBIE
Established July 1998 7-14-year-old age group Classic cool theme Logo Moose
HOLLISTER CO.
Established July 2000 14-18-year-old schoolers Theme SoCal Logo Seagull
ABERCROMBIE & FITCH
Established June 1892 Targets 18-22 year-old age group 357 stores Theme Casual Luxury Logo Moose
THE RUEHL
Established September 2004 Targets 22-35 year adults Logo French Bulldog
GILLY HICKS: SYDNEY
Established January 2008 Targets 18 and up Logo Koala Theme Australia
HISTORY
David T. Abercrombie established Abercrombie Co. on June 1892 In 1904 wealthy Ezra Fitch became a co-owner In 1909 issued and mailed 50,000 copies of 456-page catalog In 1917 A&F became the largest retailer in NYC that sold sportswear In 2006 A&F opened its first store in Canada, In 2007 first store in UK, 2009 in Asia
INDUSTRY AND COMPETITORS
Retail Industry (Special Lines) 40,000 companies operate 90,000 stores Summarized annual revenue $1.493 billion (2009) Dominance of large companies Slowdown in spending on clothing Labor-intensive industry, high demand for qualified and skilled sales reps Two main sales seasons- fall (main for A&F) and spring
What
are Abercrombie and Fitch main competitors?
INDUSTRY AND COMPETITORS
The Gap, Inc., Target Corporation Limited Brands American Eagle Outfitters, Inc. Benetton Group SpA
Tommy Hilfiger Corporation Urban Outfitters, Inc. Wet Seal, Inc, The Aeropostale, Inc.
COMPETITION
Abercrombie & Fitch
Established Revenue (billion USD) Number of stores Employees Scope of operation 1892 6.91 1039 80,100 US, Canada, UK
American Eagle The Gap
1904 2.8 697 20,600 US 1969 16 3139 150,000 More than 19 countries
UNIQUE SALES STRATEGY: IMC
High integration of Marketing efforts Recruits high energy brand reps largely from college campuses who dress in A&F Issues subscription catalog A&F Quarterly (350,000 Americans has subscribed) Issues magalogues
UNIQUE SALES STRATEGY
Emphasis on high level of service, quality, brand image
Targets Generation Y Positioning strategy involves the use of overt sexuality advertising appeal
UNIQUE SALES STRATEGY: STORE LAYOUT
comfortable armchairs designed Large photos on the walls extremely loud, energizing trance and dance songs dimmed light unique A&Fs scent in the store
UNIQUE SALES STRATEGY: WEB SITE
Allows to download music, e-post cards Provide useful information, FAQ Shop online Watch Abercrombie TV
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