Just recently Abercrombie and Fitch opened it’s first store outside of North America, in London. The Ohio-based company is excited to reap the benefits of entering a new market, especially a steadily growing economy such as England; London is a very trend-orientated city and Abercrombie and Fitch will surely cash in. Because there is such high demand for Abercrombie and Fitch clothing in England (there is more fake than real Abercrombie and Fitch clothing in the world), their profits are sure to exceed any and all costs that the company incurs from opening another one overseas. This particular Abercrombie and Fitch in London is an incredibly high volume store, with four floors and millions of dollars worth of merchandise. Abercrombie offers casual, yet luxurious pieces that are appealing to both men and women, young and old. Because there has not been any international expansion up until this point and because the demand for Abercrombie and Fitch is so high, especially overseas where they must either buy it online or produce spin-offs, the market is basically inviting Abercrombie and Fitch to their doorstep with profits in hand.
6 comments:
It sounds fairly certain the A&F will start making big bucks by expanding their market to include stores outside of the United States. But, once other stores similar to A&F see what kind of profits it is making, they will probably want to join in the market and get their own share of the profit. True, many comparable stores are already located around the globe. Clothing is not a standardized product (at least teenagers don't think so), but there have to be some other stores that will try and take part in the profit A&F will make.
The brand name Abercrombie and Fitch sells its clothes. The fact that many other manufacturers produce replicas or similarly designed clothing has not harmed the company in the past. Even if other stores see the profits being made by A&F and decided to enter the world clothing market, by entering up stores in countries such as England I do not think that perfect competition will be reached or that A&F will not be able to receive a great deal of profit. We have discussed how in order to make a profit then there needs to be a difference in your product compared to another, the brand name of Abercrombie and Fitch does that.
A&F doesnt only sell clothes, they sell a lifestyle. By that I mean they sell a Lifestyle that has become very popular over the years, its comfortable yet it has luxury. I know from talking with someone that A&F the company was very hesitant at going over seas. Yet it was the best choice for them, they are very profit conscious and only make a move if they are sure it is the best one for their company. They have reached their limit for stores in the U.S where they dont want to over poplulate and have their brand become and average everyday store and then they become washed up, they want it to be something that is not necisarily hard to get but it not in every mall you go to they only want to be with the best.
Because Abercrombie and Fitch is such a large influential company in the United States, especially to the young generation, I believe that they will overly do well when spreading to Europe. The European fashion is geared toward the younger generation and as more clothes are coming out they will benefit from the expansion. I believe that at first Abercrombie will do well, but as time progresses it will not be able to compete with the fashion of Europe.
Im actually suprised it took A&f this long to go overseas. They are a very trendy clothing store and also very popular. They have the reputation to be a higer class clothes designer and im sure alot of people all over the world would find A&F to be a trendy store and make it very popular.
If there is such a big market for the trendy stuff in europe then american eagle, hollister, and the rest of the gang better get thier butts over to capitalize on it
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