Abercrombie and Fitch

INTRODUCTION
Abercrombie & Fitch Co. is a retailer of casual clothing and accessories including cologne and perfume for men and women They target the collegiate demographic.

 Abercrombie had got its fame for designing some rugged sports and camping gear The company operates over 300 stores including 4 subsidiaries, namely abercrombie, Hollister Co., Gilly Hicks and Ruehl No. 25 Abercrombie & Fitch is more than a fashion statement; it is a life style adopted by the young generation.

History
The founder of the Abercrombie brand was David Abercrombie who started Abercrombie Co. By 1900 Abercrombie was joined by Ezra Fitch, and became Abercrombie & Fitch Co. The brand was established in 1892 and became known as a supplier of rugged, outdoor gear. In 1988 and in 1992 was repositioned as a more fashion-oriented casual apparel business.

 It was his love of the great outdoors that inspired David Abercrombie to begin Abercrombie & Co., a shop dedicated to selling only the highestquality camping, fishing and hunting gear. His clientele consisted mostly of professional hunters, explorers and trappers And a man named Ezra Fitch. He was so devoted, in fact, that in 1900 he had convinced David Abercrombie to let him buy into the business and become a partner.

 Abercrombie & Fitch continued to grow, with stores opening up in Chicago and San Francisco. But by the late '60s the store hit upon hard times and went bankrupt in 1977. The Limited Inc. bought Abercrombie & Fitch in 1988. Today, Abercrombie & Fitch thrives as a publicly held company. A powerful lifestyle brand, business is thriving at Abercrombie & Fitch with hundreds of stores.

The Brand
Today, the Abercrombie & Fitch brand personifies a privileged all American collegiate lifestyle, targeting the 18 to 22 year-old male and female. It is a timeless combination of Ivy League characteristics and the great outdoors.

Subsidiaries
Abercombie & Fitch has four subsidiaries, they are based on the age of the clientele they cater to. The first one is abercrombie which uses classic cool theme and caters to age group of 9 to 14. The next is Hollister Co with So Cal theme catering to age group of 14 to 20. Under this it also offers personal body care line.

 The third is RUEHL No. 925 which uses Greenwich Village as its theme. This line is meant for age group of 25 to 35. Leather purses and bags for women also come under this brand. The latest concept from Abercrombie is Gilly Hicks using Down Under theme. It consists of lounge wear and underwear for women.

Product Range
Abercrombie & Fitch has a huge range of apparels for both men and women with accessories like bags, sandals, and hats. Abercrombie has wide range of mens products from hoodies and jackets to sweaters. The jackets come in mostly khaki, olive, grey, and navy. They could be with or without fur collar. Hoodies come in attractive stripes and plains. The jeans are denim in black, blue, or khaki with worn out or faded look They have smart lounge pants with strings and brightly colored T-shirts with Abercrombie logo.

Strength

Weakness

Strong brand portfolio Strong presence of ecommerce business

Weak operating margin compared to its key competitor. Declining comparable store sales
Opportunities

Threats

Economic recession in the US would dampen sales Increasing demand for mens clothing and accessories

Expanding international presence Online retail sales in the US are expected to grow Increasing demand for mens clothing and accessories

MARKETING AND ADVERTISING

Abercrombie and Fitch is a corporation whose advertising methods have been controversial because of the profound effect its message has on the target audience of teens and young adults. A&F is known for its racy marketing photography by Bruce Weber It is rendered to grayscale and features outdoor settings, usually with semi-nude males and females.Less

 Marketing for Abercrombie & Fitch, though limited, consists mainly of in-store displays of shirtless models. The entire company is based on physical appearance, and managers are instructed to hire hot customers. The Abercrombie & Fitch brand image is heavily promoted as an international near-luxury lifestyle concept. Abercrombie and Fitchs main

 Recently, Abercrombie & Fitch received attention and accidental advertising during an April 2008 Barack Obama campaign stop in Indiana. Three attractive, young, college-age frat chic males were center-stage behind Obama, all wearing Abercrombie t-shirts, one with the word Abercrombie emblazoned across his chest in capital letters. Immediately, fashion and political critics alike began to accuse Abercrombie & Fitch of product placement.

The Brand Image

The power of the name has gotten out of control. The company could probably make helmets with Abercrombie on the front and sell them for $35.95, and they would be an instant hit. Abercrombie clothing is quite expensive, especially for the high school student on minimum wage or the college student on a budget. Its fine if people find those shirts appealing, and indeed, many people look very attractive wearing those chest stripe sweaters. But the other category of Abercrombie clothing really concerns people: those shirts which might sell for a fourth of the price, except that they say Abercrombie and Fitch in huge letters across the front.

THE STORE
Two young, shirtless men in low-slung jeans greet you at the door. Disco music pounds out, the air is full of a sickly sweet scent and it is so dark, customers get lost and panic The interior is lit with dim ceiling lights and spot lighting. Fierce, an A&F fragrance for men, is automatically spritzed from the lighting tracks by employees. Electronic dance music meant to create an upbeat atmosphere may be played at sound levels as high as 90 decibels, exceeding the corporate policy of 80 decibels and comparable to heavy construction machinery and harmful to the ears.

 The company operates 1,069 stores across all four brands. The A&F brand has 325 locations in the United States, four in Canada, one in London, one in Milan, one in Tokyo, one in Copenhagen, one in Madrid (opening May 2011), one in Paris (May 2011), one in Brussels (late 2011), one in Dublin (late 2011), and one in Hong Kong.

MAJOR COMPETITORS
The top competitors of Abercrombie and Fitch as per their product line and consumer base are: Gap, Inc. American Eagle Outfitters Aeropostale Inc.

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