Abercrombie & Fitch

1. Introduction.............................................................................................1

2. Company Overview...................................................................................1

2.1. A&Fs Foundation and Recreation 1

2.2. Economic Factors 3

2.3. General Marketing Approach 3

2.4 A&Fs Vision and Mission...........................................................................................4

3. Marketing Approach 5

3.1. Expansion Process and Future Perspective 5

3.2. Introduction to Research Question 5

3.3 Adaption vs. Standardisation.....................................................................................6

4. Analysis..................................................................................................7

4.1 SWOT Analysis.........................................................................................................7

4.2 PESTLE Analysis.....................................................................................8

Conclusion.........................................................................................................10

Bibliography..............................................................................................11

Affidavit....................................................................................................12

1. Introduction

Abercrombie and Fitch is one of the most well known brands in the apparel industry, especially worn by children and teenagers and the college-age population.

The success story of Abercrombie and Fitch, an American company, is comparable to a rollercoaster ride and has a long back-going history from over a hundred years of business, since the brand was founded in 1892 under the name of David T. Abercrombie.

For us, as International Business students, Abercrombie and Fitch, with its diverse business strategies and expansion process, has been especially interesting to research and to analyse the company's international marketing approach. Moreover, we analyse, whether the company actually has been working successfully with this approach and how Abercrombie and Fitch is situated in the international apparel industry.

The first part of this term paper gives a general overview of the company's' history and economic situation. Furthermore, it will present the Vision and Mission statements of Abercrombie and Fitch and displays the expansion process and future perspective of the company. Second, this term paper analyses the general and international marketing approach of Abercrombie and Fitch and introduces our research question. Third, it will provide a SWOT and PESTLE analyses of the Company and the apparel industry. Concluding, we will respond to our introduced research question and summarize our findings of the international marketing approach of Abercrombie and Fitch. Our view of the company is also based on personal experiences and sources which have been used to research and analyse, are mostly articles of Internet journals, as well as journals of the apparel industry and finance industry and will be displayed in the Bibliography.

2. Company Overview

2.1. A&Fs Founding and Recreation

David Abercrombie who was born and raised in Baltimore, Maryland, invented and designed backpacks, tents and other stuff and felt inspired by his passion for camping. So he found Abercrombie & Co. in order to sell only the highest-quality camping, hunting and fishing equipment. In 1892, he opened up a waterfront shop and factory in New York City named 'David T. Abercrombie Co.'.

One of his most devoted customers, Ezra Fitch, who shared Abercrombie's passion, convinced him to get into his business. In fact, in 1890, they became partner and in 1904, the company became incorporated and was renamed to Abercrombie & Fitch. Having had different visions and missions for their company, the partners started to discuss about how to keep the business going. While Abercrombie wanted to stay conservative, sell qualitative gear to professional outdoorsmen, Fitch wanted the company to expand, to attract more simple consumers. As there was no mutual agreement, David Abercrombie ended the partnership and resigned in 1907.

By 1913 the company started to expand its inventory by also offering sport clothing, moved to a more fashionable address in New York City and became the only store selling such clothes for both men and women.

With its slogan 'Where the Blazed Trail Crosses the Boulevard', A&F became the most impressive and largest store selling sports wear. By offering catalogues and having campaigns, the company expanded more and more, opened up stores in San Francisco and Chicago. But at the end of the sixties, Abercrombie's lifework had to face financial problems and went bankrupt in 1977.

'The Limited Inc.' bought the company in 1988, which hired Michael Jeffries as the new CEO to run the business. Nowadays it is a powerful lifestyle brand laying strong emphasis on apparel and business thrives with hundreds of stores all over the world.

With a chain of 36 stores and annual sales of $ 50 Mio in 1991, $ 85 Mio in 1992, $ 111 Mio in 1993, $ 165 Mio in 1994 and meanwhile 68 stores, the company started to expand more and more. For the end of 1995, a target of 102 stores, mostly placed in malls was set. Since then, A&F kept focusing on the demand of young Americans, got into a casual, preppy direction and used open sexuality for its advertising. At the end of the 90ies, the company's competitors as American Eagle Outfitters started to sell similar styles to lower prices, but it was not possible to get a patent on their merchandise. The children's and preteens store 'abercrombie' was opened up to broaden their scope of clientele. In 2000, 'Hollister Company' was launched in Columbia, Ohio, selling the same sexy, surfy style as its sibling, so nobody really realized the company to belong to A&F. By the end of 2001, the company already owned more than 300 stores and had a net income of over $ 158 Mio, but the company still kept growing very fast. In 2004, Bob Singer was hired as president and with him,