aa buying final
TRANSCRIPT
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Women’s Fall 2012American Apparel®
Robin Mitchell
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Founded in 1989 by Canadian Dov Charney while
a Freshman at Tufts University
Vertically Integrated
Produces over 55,000 products and garments locally in Los Angeles
Worldwide with273 locations
Known for provocative and controversial ad
campaigns
American Apparel®
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Marketing:• 1,043,887 Facebook likes• 587,109 Twitter followers
• Tumblr page• Pinterest page
• 40,000 Instagram followers
American Apparel®
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• T-Shirt spreading over every demographic
• Affordable Price Points
• Company ideals produce brand loyalty
• Room for expansion
• Create Private Labels
• Open more stores
• Dov Charney is a liability (4 sexual harassment charges)
• Bland product
• With “edgy” comes controversy (ads)
• Fast fashion producing identical styles
S W
O T
American Apparel®
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Target Market-Demographics & Psychographics
• Female between the ages of 25-44
• Keeps up with latest fashions
• Belong to a human rights organization and have a liberal outlook
• Concerned with the environment and care where their garments are made
• Avid readers enjoying authors like Henry Miller and magazines like Nylon
American Apparel®
• Typically renters
• Hold a college degree
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Segment AnalysisLily Rachel
• Gender: Female• Age: 25-30• Income: $57,000 Individual• Education: Bachelor’s Degree• Lifestyle: Lives in the mission
works as a PR coordinator for beauty company. She enjoys dining out and taking dance classes.
• Gender: Female• Age: 18-24• Income: $16,000-$20,000
(Individual)• Education: Bachelor’s Degree
(current student) • Lifestyle: Lives in Glen Park
Psychology student at UCSF who sells her own art work on the side. She works at a hair salon part time.
American Apparel®
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American Apparel® Sales
This Year Last Year % Change
$367.9$380.8 3.5%
Merchandise Mix Modifications
Changes Price Point Sizes % of total ColorsClassifications Dresses raise to $79 same replace blue with green, add purplesBottoms remove yellow to beige red gets 10%Short Sleeves same 10% of small to medium 10% to long sleeves Long Sleeves $40 to $60 remove polka dots add sheerSweaters $49,$79,$95 Skirts raise to $80 10% to medium 5% go to bottoms
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Department Analysis
Class : Dresses
Reds Black Greens Stripes Dark Purple
0%10%20%30%40% Colors
XS
S
M
L
25%25%
25% 25%
Sizes
$35 $55 $79 Total0%
20%
40%
60%
80%
100%
120% Price Points
Class : Bottoms Class : Skirts
XSSML
30%10%
30%
30%
Sizes
Colors
Price PointsGreys Blues Beiges Whites Patterns
0%5%
10%15%20%25%30%35%40%45%
$45 $60 $80 Total0%
20%
40%
60%
80%
100%
120%
2420%
2630%
2815%
2720%
2515%
Sizes
Colors
Price PointsDenim Blacks Blues Reds Beiges
0%
10%
20%
30%
40%
50%
60%
70%
$50 $80 $100 Total0%
20%
40%
60%
80%
100%
120%
American Apparel®
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Department Analysis
Class : Short Sleeves Class : Sweaters Class : Long Sleeves
Sizes
XS
S
M
L
30%
30%
30%
10%
Stripes Purples Reds Whites Blacks0%5%
10%15%20%25%30%35% Colors
Price Points
Colors
Price Points
$25 $35 $55 Total0%
20%
40%
60%
80%
100%
120%
XS
S
M
L25%
25%20%
30%
Blues Greens Blacks Sheers0%5%
10%15%20%25%30%35%
$40 $80 Total0%
20%
40%
60%
80%
100%
120%
XS
S
M
L
25% 25%
25% 25%
Colors
Burgundy Patterns Blacks Greens Greys0%5%
10%15%20%25%30%35%40%
$49 $79 $95 Total0%
20%
40%
60%
80%
100%
120%
Sizes Sizes
American Apparel®
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Market Trend AnalysisAmerican Apparel®
• Consumers are more upbeat and positive about their spending futures
• Unemployment will decrease from 8.2% to 7.8%
.5% Economic Trends .5% Political Factors .5% Social Trends• Only 45% of 18-35
year olds are excited for the upcoming election
• Obama pushing “Made in the USA” to increase our exports and create more jobs in the United States
• UN World Tourism Administration predicts tourist arrivals to reach the one billion mark in 2012
• “Last Chance Tourism” offers travelers to see earths disappearing landscapes & species
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.5% Competitive Changes 1.0% Fashion Trends.5% (threat) Marketing/Promoti
ons• The closing of Shotwell• Opening of Uniqlo
• Controversial ad campaigns
• “Coming Soon” feature on website where women can pre-order and even receive text alerts when new merchandise has come in
• WWD reports that gold, sparkling, velvet fabrics and oversized silhouettes will be on trend for fall
• Burgundy will be the color of the season reported by GQ.com
Market Trend AnalysisAmerican Apparel®
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American Apparel®Private Label Program
Current styles are extremely basic, expand brand (line customer can grow into)
30% of available receipts in the dresses classification are going to be spent on a new private label which is a test for the Fall 2012 season
Build on Fall trends of burgundy and leather trimmings
AA wants to reach out to our other demographic Create higher
quality, specialty piece items
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Private Label ProgramDelivery 1 - OctoberAmerican Apparel®
Long Sleeve Maxi Leather Collar Dress
• Fabric content: Silky Jersey
• Price point (at retail): $59
• Sizes: XS, S, M, L
• Fabric content: Tweed & Leather
• Price point (at retail): $89Cap Sleeve Dress
• Fabric content: Velvet & Rayon• Price point (at retail):
$72• Sizes: XS, S, M, L
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American Apparel®
• Fabric content: Metallic Jacquard
• Price point (at retail): $78
• Sizes: XS,S,M,L
• Fabric content: Silky Jersey
• Price point (at retail): $59
• Sizes: XS,S,M,LLong Sleeve Maxi Disco Dress
Private Label ProgramDelivery 2 - December
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American Apparel® Promotional Campaign
Exclusive new dressesGet ‘em while they’re hot!
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American Apparel® Promotional Campaign
Exclusive email members get 15% off newest styles until 12/15/12 with this print out!
The Disco Dress just hit for the holiday season
Lust-worthy leatherHoliday 2012
Newspaper E-mail blast
The New Disco• December 1, 2012 7-Midnight• Employees on roller skates handing out free cocktails• Fashion show of private label items featuring The
Disco Dress