The Success of American Apparel in New Zealand

Running Head: SUCCESS OF AMERICAN APPAREL IN NEW ZEALAND

Opportunity for American Apparel to Thrive in New Zealand
Christina Strader
Ashley Taylor
Business Communication
Spring, 2009
Prepared for Professor Tonya Riney

Table of Contents
Abstract3
Figure 13
Opportunity for American Apparel to Thrive in New Zealand4
Analysis of the Current U.S. Market4
Presence of the Young Adult Market4
Characteristics of the Millennial Generation 4
Expenditures of Under 25 Consumers4
Identifying the Urban Consumer5
American Apparel Thrives in Mid-Sized Cities5
Population of U.S. College Students5
Strategic Placement in University Towns5
Students Prefer Food Away From Home5
Percentage of Nightlife for University Town Storefronts6
Figure 26

Analysis of the Proposed New Zealand Market6
Presence of the Young Adult Market6
Characteristics of the Millennial Generation 6
Expenditures of Under 25 Consumers7
Figure 37
Identifying t Andhe Urban Consumer7
American Apparel Thrives in Mid-Sized Cities8
Population of New Zealand College Students8
Strategic Placement in University Towns for Alcohol Consumption8
Students Prefer Food Away From Home8
Percentage of Nightlife for University Town Storefronts9
Conclusions9
Recommendations9
References10

Abstract
New Zealand provides American Apparel a gateway into a growing retail market in the Pacific Rim. American Apparel targets a youth market that is prevalent and growing in the urban centers of New Zealand. American Apparel is a unique clothing retailer that targets metropolitan young adults. Universities in New Zealand are growing at a high rate, where Auckland, New Zealand’s business centers are overtaken by young adults pursuing college educations (Euromonitor International, 2009). The high percentage of young adults combined with high university enrollment will support the fashionable yet affordable American Apparel. This is highlighted by New Zealand’s strong economy, growing cities, and

References: Albertson, J., (2008, May). New Zealand Retail Association: The retail market in New Zealand. Retrieved April 27, 2009, from http://www.retail.org.nz/. American Apparel. Retrieved April 13, 2009, from http://www.americanapparel.net/ Anonymous, (2009, March 18) Auckland University. (2009). Retrieved April 28, 2009, from http://www.auckland.ac.nz/uoa Brady, M Brown, R., Washton, R. (2007). The Teens Market in the U.S., 147-168. Packaged Facts. Retrieved August 18, 2009, from MarketResearch. Brown, R., Washton, R. (2001). The U.S. College Market. Packaged Facts. Retrieved April 20, 2009, from MarketResearch. Brown, R., Washton, R Cohen, B. (2007). A Small-Town Feel in an Urban Locale, 6. The New York Times. Retrieved April 27, 2009, from LexisNexis. Euromonitor International, (2009). Consumer lifestyles-New Zealand. Retrieved April, 20, 2009, from Global Market Information Database. Finn, L. (2007). Singles in the U.S.: The New Nuclear Family. Packaged Facts. Retrieved April 20, 2009, from MarketResearch. Hirschfeld, B. (2006). Case Study: American Apparel. RetailTraffic. April 20, 2009, from http://www.americanapparel.net/presscenter/. Hoover’s Inc., (2009, February 17). Hover’s Company Records-In-depth records American Apparel. Retrieved April 23, 2009, from http://www.hoovers.com/american-apparel/--ID__110793--/free-co-factsheet.xhtml. InternetRetailer. (2009). Foreign sales help drive up American Apparel’s ’08 online sales 55 percent. Retrieved April 28, 2009, from http://www.internetretailer.com. Kang,S., (2006, December 16). American Apparel seeks growth through an unusual deal. The Wall Street Journal, B.1. Retrieved April 14, 2009, from ProQuest database. Machosky, M., (2006, February). Vertical integration. Pittsburg Tribune-Review. Retrieved April 14, 2009, from http://www.pittsburghlive.com/x/pittsburghtrib/s_423455.html. Mason, B. (2007). Stores, transit, walkability; To attract millennials, appeal to their desires. Crain’s Detroit Business, D15 My Best Segments. (2008). Boomtown Singles. Retrieved April 13, 2009, from http://www.claritas.com/MyBestSegments/. New Strategist Publications. (2004). The Millennials: Americans Born 1977 to 1994 (2nd ed.). Ithaca, New York: New Strategist Editors. New Zealand Retail Association, (n.d) Top ten retail trends. Retrieved April 20, 2009, from http://www.retail.org.nz/top10retailtrends.html. Palmeri, C Perkins, J.C., (2007, March 1). American Apparel’s appeal. Retrieved April 14, 2009, from http://www.thestreet.com/i/streetinsight/longshortinvestor/10341891.html. Rushe, D. (2004). Fashion Rebel Swears By Clothes Made in the USA. The Sunday Times of London Securities and Exchange Commission. (2007). Form 10-K annual report. Retrieved April 27,2009, from http://investors.americanapparel.net/secfiling.cfm?filingID=1193125-07-57108. Seidler, B. (2008). Putting American Apparel on the World. International Herald Tribune. Retrieved April 20, 2009, from http://www.americanapparel.net/presscenter/. Statistics New Zealand. (2006). 2006 Census. Retrieved April 26, 2009, from http://www.stats.govt.nz/default.htm. Teklits, J., Fontana, J. (2009). American Apparel Reports March 2009 Comparable Store Sales. Retrieved April 13, 2009, from http://investors.americanapparel.net/ The Economist founder. Retrieved April 20, 2009, from http://www.americanapparel.net/presscenter/ United States Department of Labor: Bureau of Labor Statistics United States Census Bureau. 2006 MSA Business Patterns. Retrieved fromhttp://censtats.census.gov United States Census Bureau Wright, Lori. (2008). UNH Professor Writes First Book About Life In The American College Town Yahoo! Finance. (2009, April 22). American Apparel, Inc. financial report. Retrieved April 22, 2009, from http://finance.yahoo.com/q/co?s=APP.