Abercrombie & Fitch Country Report

Topics: Abercrombie & Fitch, Hollister Co., Australia Pages: 12 (3613 words) Published: June 2, 2013
International Business

“Casual Luxury”

Prepared by:
Rebecca
EVP Business Development

Prepared for:
Dr. Robert
CEO

Introduction

It is not surprise that our business has reached its full potential in the United States. Our earnings rose 40% as a result of our stronger margins and stronger sales abroad. Even though we have expanded internationally, A&F still needs room to grow. Revenue from international sales totaled $US1.4 billion in fiscal 2012, a 36% increase. One of the most promising markets for our retail line is Australia. One of our brands, Hollister, was inspired by the California lifestyle and it will be the first store we need to open there.

The Hollister lifestyle - young, fun, and laid back matches closely the lifestyle of Australia. Our brand's success is built around the in-store experience and is unlike any other retailer. Energetic associates help promote the brand and encourage customers to join them in the excitement of Hollister. Hollister fans have a lot in common around the world, regardless of what country they are in.

A main priority would be to focus on the most populated areas in Australia, which are the east coast. The cities include Sydney, Melbourne, Brisbane, Perth, and Canberra. Our research shows that online shopping is not a popular choice when trying to market our brands. Most people in with internet in Australia shop local brands, so we would be better off building our store in their major cities close to popular Australian stores.

We will set our pricing in line with the exchange rate at that point in time. We then would monitor exchange rates to ensure that they don't result in substantial swings to our customers, and adjust only if we believe needed. For example, we recently lowered our pricing in Canada to reflect the sustained strengthening of the Canadian dollar against the US dollar.

We will set our pricing in Australia using the same principles we've used to set our pricing around the world. One of these principles is around understanding our local competition and pricing accordingly. As part of our normal processes, once we open our stores, we will monitor local pricing regularly to ensure we continue to be priced appropriately.

This report discusses the Abercrombie & Fitch Co. and its brands and how well it will fit in the Australian market. We will look at the basic information of Australia, popular Australian brands, competition, online shopping, economic trends, Australian culture, and their government.

Executive Summary

This report contains information about our company, Abercrombie & Fitch, and the expansion into Australia. Australia seems like tit would be the next big move for our company and it would be a great opportunity for potential growth. Although we have successfully moved into other countries, the Australian people seem like they would enjoy our Hollister brand clothing line.

During 2012, we opened our first store in Sydney, Australia, so that we can better understand the culture and their surroundings. In this report you will find information about demographics, different ethnic groups, the age structure, population growth and death rates, and urbanization. This information was formulated through detailed research of Australia. Also, inside you will find the major populated cities: Sydney, Melorne, Brisbane, Perth, and Canberra. Research was also conducted to find the sex ratio, their religions, different languages, and the literacy rate among male and female. All this information helps us to understand the Australian people better and how we can better serve them.

Also contained in this report, is a list of our different brands, our United States Competitors, and out Australian Competitors. Some of the US competitors may already be located in the Australian market, so they would also be considered a competition there for us as well. The retail market is highly competitive, so it is very important for us...
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