Monday, September 24, 2012

Abercrombie Sales Slide as Half-Naked Models Underwhelm

http://www.bloomberg.com/news/2012-08-22/abercrombie-sales-slide-as-half-naked-models-underwhelm.html


Today’s teens are “radically different” from other generations, including Millennials now in their 20s, because they are rejecting uniforms, according to Marcie Merriman, founder of retail and brand strategy consultancy PrimalGrowth in Columbus, Ohio.
Dubbed Generation C -- for creative and connected -- they have a bevy of clothing options thanks to the boom in fast- fashion from Forever 21 Inc. and Hennes & Mauritz AB’s H&M, said Merriman, who has consulted for Jack Daniels and Nike Inc. and is a former director of brand planning and strategy for Limited Brands Inc.’s (LTD) Victoria’s Secret. Gen C also has developed a more individual style from the Web and social media, she said.
Abercrombie must “look at ways to tie in with this creative class in a way that their brand will continue to resonate,” Merriman said. “They’re positioned well to take advantage of this group’s desire to be rebellious and indie and different, because that’s what the brand is about, but right now the product mix doesn’t communicate that or facilitate it.”
“Abercrombie is still running an offense which is a huge banner of a bare-chested guy with a cute girl who’s not wearing enough clothing,” said David Maddocks, a former chief marketing officer for Nike’s Converse sneakers label, who now runs a lifestyle brand consulting firm based in Portland, Oregon. “It’s vacuous, there’s no core idea there anymore and people want the richness that comes with real authenticity.”
The company shows no signs of changing its brand message. A page laying out Abercrombie’s capital-allocation philosophy in an Aug. 15 investor presentation features a photo of two barely clothed teens making out.

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