16
Women’s Fall 2012 American Apparel® Robin Mitchell

AA Buying FINAL

Embed Size (px)

Citation preview

Page 1: AA Buying FINAL

Women’s Fall 2012American Apparel®

Robin Mitchell

Page 2: AA Buying FINAL

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®

Page 3: AA Buying FINAL

Marketing:• 1,043,887 Facebook likes• 587,109 Twitter followers

• Tumblr page• Pinterest page

• 40,000 Instagram followers

American Apparel®

Page 4: AA Buying FINAL

• 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®

Page 5: AA Buying FINAL

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

Page 6: AA Buying FINAL

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®

Page 7: AA Buying FINAL

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

Page 8: AA Buying FINAL

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®

Page 9: AA Buying FINAL

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®

Page 10: AA Buying FINAL

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

Page 11: AA Buying FINAL

.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®

Page 12: AA Buying FINAL

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

Page 13: AA Buying FINAL

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

Page 14: AA Buying FINAL

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

Page 15: AA Buying FINAL

American Apparel® Promotional Campaign

Exclusive new dressesGet ‘em while they’re hot!

Page 16: AA Buying FINAL

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