In 2005, Abercrombie & Fitch introduced a strategy that aimed to connect with different customer segments, which included children as young as 7 and post-college individuals. To achieve this goal, they established four distinct brands: A&F, Abercrombie, Hollister Company, and Ruehl. The A&F brand specifically focused on college students and embraced the vibrant fashions influenced by Ivy League traditions found on the east coast.
Abercrombie is a brand of clothing similar to A&F, specifically designed for children aged 7 to 14. Hollister Company, on the other hand, creates clothing that is influenced by the relaxed surf culture of California and is targeted towards high school students. Hollister offers affordable casual apparel, personal care products, and accessories. The third brand, Ruehl, specializes in selling casual sportswear, trendy apparel, and leather goods to post-college consumers aged 22 to 35. Ruehl draws inspiration from the Greenwich Village lifestyle in New York, but their merchandise is known for being more upscale and expensive.
Since its establishment, the store’s strategy has experienced considerable changes. Abercrombie and Fitch no longer sell the same products as before. Initially, they focused on selling luxury sporting goods to adventurers, hunters, presidents, and royal families. Currently, A&F’s key policies and operating practices revolve around their visual presentation. They heavily invest in creating an enticing visual experience for customers.
Although the company prioritizes its products, it also places significant emphasis on the aesthetics of its stores and employees, as well as their marketing and advertising strategies. The stores showcase a contemporary Canoe store design, featuring white molding and louvers on the exterior. The main marketing image is prominently displayed against the front wall near the entrance. Inside, a unique atmosphere is created by dim ceiling-lights and spot lighting. Noteworthy elements include the lingering fragrance of Fierce, an A&F perfume, as well as blasting electronic dance music.
An undercover inspection in a randomly selected mall found that the noise levels in Hollister, Abercrombie & Fitch, and Abercrombie kids’ stores reached up to 90 decibels, equivalent to the noise produced by heavy construction machinery and potentially damaging to the ears. This is in contrast to the corporate store policy sound level of 80 decibels. Some chain stores still have plaid carpeting and preppy wallpaper in their design. Additionally, the company refers to its employees as “models” who serve as brand representatives for customer service within the stores.
The representatives were previously required to purchase and wear Abercrombie & Fitch apparel exclusively. However, they are now allowed to wear any clothing without logos as long as it is either grey, navy, or white. They are required to wear either Abercrombie jeans or jeans without logos. The “Impact Team” was established in 2004 to oversee merchandise and uphold company standards in each store. The responsibility of “Visual managers” is to maintain a standard visual appearance throughout the store. This includes forms, lighting, photo marketing, fragrance presentations, and ensuring brand representatives comply with the “look policy”. The official Abercrombie & Fitch logo used in advertising is a moose.
The company promotes its products using sensual photographs with a beach, architectural, or mountainous backdrop in grayscale. The photographer responsible for the marketing images is Bruce Weber, who is renowned for his provocative photography for Calvin Klein and Polo Ralph Lauren. Models and their corresponding photos were regularly showcased on the official website’s “A&F New Faces” section. However, this section was later renamed “Photo Gallery” after featuring only a select few photographs. To provide information and advertise casting opportunities for marketing campaigns, the company introduced a new section called “A&F Casting”.
Abercrombie and Fitch has a strategy to hire attractive models as “brand reps” (store associates) in order to attract young customers and increase clothing sales. The company promotes its products and brand with the trademarked slogan “Casual Luxury,” emphasizing their use of high-quality materials like cashmere, pima cottons, and leather to create stylish yet comfortable clothing. Alongside apparel, Abercrombie and Fitch also provides fragrances for both men and women, as well as footwear and accessories.
The distinct combination of strength and unhealthiness defines Abercrombie and Fitch’s culture, resulting in outstanding performance. This powerful yet detrimental culture originates from the company’s remarkable skill in influencing customers, cultivating brand loyalty, and ultimately strengthening its corporate culture.
Despite facing criticism from employees, Abercrombie and Fitch has successfully maintained a loyal customer base. Despite the negative hiring incident, customers remain devoted to shopping at Abercrombie and Fitch. The company’s emphasis on appearance in its culture is appealing to both current and potential customers. This alignment of culture and strategy has contributed to their accomplishments.
The culture and strategy of Abercrombie and Fitch are closely connected, as they revolve around the appearance of the store, its employees, and products. The company heavily relies on Michael Jeffries, who was hired by Leslie Wexner in 1992 to rejuvenate Abercrombie & Fitch.
The company was founded in 1892 and was purchased by Limited Brands in 1988 after experiencing bankruptcy. Jeffries is credited with creating new looks for the company, aiming for a sexy image for Abercrombie & Fitch. It underwent careful rebuilding to become an upscale apparel retailer for college students, and the success of the chain store concept allowed the company to open many new stores by the mid-1990s. Limited Brands gradually disengaged from the company and eventually left it in the hands of Jeffries.
Jeffries has retained complete control over every aspect of the company, including clothing designs and placement of fixtures in stores. A&F has been able to upset different groups like feminists and the American Decency Association, leading to multiple controversies and legal conflicts. Despite these difficulties, Jeffries has demonstrated his capability as a leader. One instance of their legal problems is when they paid $50 million to resolve three lawsuits claiming racial discrimination. Do you think these lawsuits were justified? What were the main operational practices that led to these legal actions?
Did A&F’s marketing strategies, which seemingly offended specific minority groups, foster an intolerant corporate culture that lacked diversity? Should A&F have the liberty to target any ethnic group in its marketing efforts? And should retailers have the freedom to hire employees whose appearances align with their desired image? The lawsuits were indeed justified due to intentional discriminatory practices of not offering job opportunities to qualified minorities but instead favoring white applicants.
Abercrombie and Fitch’s marketing strategies, which offended certain minority groups, resulted in the realization that their lack of diversity would have severe negative consequences for their business. This recognition prompted them to change their culture to avoid potential bankruptcy due to lawsuits and declining sales. Although Abercrombie and Fitch has the ability to market to any ethnic group, it is considered unethical to do so. As long as an individual can perform the job, their ethnicity should not be a concern.
When targeting teenagers and young adults with advertisements, Abercrombie and Fitch’s approach goes beyond ethical boundaries. While it is acknowledged that “sex sells,” it is inappropriate to target such young customers with explicit advertisements more suitable for older adults. This includes featuring models posing in revealing or nude attire.
In terms of recommendations for Michael Jeffries on improving A&F’s strategy and approaches to strategy execution, I advise him to prioritize considerations for both customers and employees.
