American The retailer’s overview
Retailer Case Study and Consumer Profile
The retailer’s overview
American apparel is an integrated quality high street retailer, clothing manufacturer and distributor operating more than 273 retail stores in 20 different countries. The brand was founded in 1989 by Dov Charney, an eccentric who made a brand which accentuated his personality, style and creativeness. It wasn’t until he re-launched and relocated the company (including the manufacturing) to Los Angeles in 1997 when American Apparel took off as a success. 11,300 people are globally employed (about 5,000 in the LA headquarters and in the manufacturing), and operate more than 273 retail stores in 20 countries. The company operates the largest garment factory in the United States. (American Apparel website, 2010) The unconventional business model Dov Charney uses means that the company is vertically integrated where all facets of business are intermingled in the one location, and therefore saves money due to maximum efficiency and fast production rates, which means that despite paying $12 per hour for labour unlike using cheap foreign labour as is universal in the garment-industry practice, they still have competitive high street prices. This is one of the brands main unique attributes, with very few labels now being able to brand themselves as being ‘Made in the USA’.
American Apparel has earned its reputation by offering fashionable products of high quality at affordable prices. American Apparel is known for selling exceptionally well fitted, solid colour cotton knitwear, such as t-shirts and underwear for men, women and children. In recent years the brand has expanded, and is also well known for selling ‘dance inspired’, or for men ‘hipster vintage’ fashion garments including legwarmers, knee high socks, leggings, nylon tricot dresses and trousers, leotards and even vintage coats. As American apparels success doubled every year after 2000, they expanded to include ranges for children, dogs
The retailer’s overview
American apparel is an integrated quality high street retailer, clothing manufacturer and distributor operating more than 273 retail stores in 20 different countries. The brand was founded in 1989 by Dov Charney, an eccentric who made a brand which accentuated his personality, style and creativeness. It wasn’t until he re-launched and relocated the company (including the manufacturing) to Los Angeles in 1997 when American Apparel took off as a success. 11,300 people are globally employed (about 5,000 in the LA headquarters and in the manufacturing), and operate more than 273 retail stores in 20 countries. The company operates the largest garment factory in the United States. (American Apparel website, 2010) The unconventional business model Dov Charney uses means that the company is vertically integrated where all facets of business are intermingled in the one location, and therefore saves money due to maximum efficiency and fast production rates, which means that despite paying $12 per hour for labour unlike using cheap foreign labour as is universal in the garment-industry practice, they still have competitive high street prices. This is one of the brands main unique attributes, with very few labels now being able to brand themselves as being ‘Made in the USA’.
American Apparel has earned its reputation by offering fashionable products of high quality at affordable prices. American Apparel is known for selling exceptionally well fitted, solid colour cotton knitwear, such as t-shirts and underwear for men, women and children. In recent years the brand has expanded, and is also well known for selling ‘dance inspired’, or for men ‘hipster vintage’ fashion garments including legwarmers, knee high socks, leggings, nylon tricot dresses and trousers, leotards and even vintage coats. As American apparels success doubled every year after 2000, they expanded to include ranges for children, dogs
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