Business & Management (SL) IA:
“Would lowering the prices of merchandise at American Apparel bring more customers in to help profits rise?”
Introduction
American Apparel is a popular clothing company. Dov Charney, is the founder of this company. He was a Canadian businessman and was the CEO from 1989-2014.It's sewing factory is the largest sewing facility in North America. In the early 1990s american apparel was just a small start-up that was established by the canadian Charney. After realizing that the store was becoming a success, Charney then decided that he wanted to expand into direct consumer retail. A little after that the company went into aggressive expansion mode.
After years of disgusting that american apparel is going to close, this move is finally happening. January 12th a delaware
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In 2015 they filed for bankruptcy, but apparently recovered by february 2016 after losing $200 million in debt and touting a recovery plan. The company was not able to raise enough money to implement the plan, so they filed for another bankruptcy in November of 2016. The sales of the company were unavoidable, and it's only by liquidating its remaining assets and selling off the valuable parts of the company that what was once American Apparel can walk away from this. Will lowering the prices help this company?
Commentary
American Apparel has filed for bankruptcy several of times. This problem has a lot to do with their prices. So how can we prevent this from happening? The pricing of their clothes are overpriced, shirts range from $20-30 each. Pants range from $40-60 per pant. Prices like these would not really draw customers into the store, unless we are talking wealthy customer. This is what causing the bankruptcy, as well as the closing that is happening by the end of april. A way to keep this business up and running is if they
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
I would suggest that they incorporate more diversity in their ads and campaigns to reach different ethnicities if they want to continue to expand. Also, in stores, particularly the Willow Grove, PA location, is very large and spacious. Upon entering the store it is primarily women’s apparel and accessories, as well as men’s. Maybe the company can incorporate more of its products in this location, to provide consumers with more of a product assortment.
And those trends have been going on for more than a year. Whatever role nonstore retailers are playing in the decline of department store sales, looking at the two together shows just how dramatic the downward trend in department store sales is compared to a segment with which those stores often compete.
With the recent (and seemingly unstoppable) decline of JC Penney and Sears, much internet ink has been spilled lamenting the decline of these companies, while little analysis has been done exploring which retailers, brands, and stores can best profit from this massive outflow of JCPenny’s and Sears’ traditionally-loyal customers. The most obvious contender in this market share version of jump-ball? Kohl’s Corp. After all, Kohl 's, the 4th largest department store in the country, is where we, the consumer, are to “expect great things.” And as a company operating “1,146 stores in 49 states” with a stated “focus on providing excellent value to customers through offering moderately priced, exclusive and national brand apparel”, Kohl 's operates
They could accomplish this by appealing to how society has become more tech savvy, especially the younger generation, and come up with a social media site and a mobile app that appeals to consumers with promotional ads and eye-catching apparel. The fact that the company has multiple operating segments is a plus because it gives them a bigger buying market which allows them to reach more people. The key will be for them to step out of their comfort zone of only wanting to create one style of clothing and keep in mind that fashion is always changing so they must do the same. After Dov Charney was fired in 2014, it was questioned whether American Apparel had lost its appeal, and it is evident that if they continue to promote the provocative nature of clothing style they started with, they will become stagnant. American apparels strength and success will be maintained by using the vertical integration model.
Have you ever seen people that follow a mixture of religions,dress differently in public all over
Revco is Unable to pay the debt, so filed bankruptcy in July of 1988. Revco Drug Store company has suffered a huge loss due to failed in business plan horribly. There are 2000 Revco drug stores in nearly 30 states. But the Revco drug store is facing a Bankruptcy due to debt issues. When a company is prepared to go for Bankruptcy working on a plan is always a serious issue.
American Eagle Outfitters is a fairly new company but they are doing extremely well because they have a clear grasp of who their target market is. They posses a fresh new hip look with great quality clothing at a reasonable price for consumers (http://www.prism.gatech.edu/~gte201w/aeostrat.html). This is one of the main reasons why teenagers and young adults are so attracted to the company. American Eagle is aiming to appeal not only to the targeted 20 year old but also consumers between the ages of 16 and 34 years old. This will widen the gap between their major competitors because they are trying to appeal to more segments than just one. American Eagle seeks to be assessable, fashion orientated, and has a strong value proposition, which has allowed the company to thrive and take shares from competitors over the past five years. Not only is their clothing line very comfortable, bold and fresh, the store layout and atmosphere is also major key factors in American Eagle’s success over the recent years. AE also has a strong competitive advantage because of their short lead times and their ability to position themselves in high-visibility, high-profile locations in key markets. American Eagle’s cycle time is about five months from design to delivery, versus about nine months for The Gap and six months for Abercrombie. AEOS minimizes lead times by maintaining sourcing relationships with a few key manufacturers and producing much of the merchandise in North America, versus 9% for The Gap and a minimal amount for Abercrombie. AEOS has the ability to quick-source some of its simpler product categories in order to react quickly to sales trends. (http...
... 1% of the $181 billion U.S. apparel market (Tiplady, 3). The potential growth of fast fashion will expend all over the country just like a flow. H&M got its sales boosted up about 20% in the first three months in 2006. Zara is also going
The New York Times (7/19/84) determined Levi's market share at 21%. Its closest competitor was Lee, which kept 12% of the denim jeans market. However, the company understood that previous year's net income fell to its lowest level since 1974. This downfall was caused to such reasons as a change in taste away from basic jeans toward fashion jeans, weak foreign currencies; expanded production capacity coupled with a flattened jeans market, and strained relationships with some retailers. The main reason of many of the company's problems is shift in clothing symbolism desired by consumers. The large manufacturers, encouraged by a boom beginning in 1981 increased production and became complacent about a market which would become flat in later years (The New York Times, 7/19/84). The overall inactivity of this market is often attributed to the growth of the baby boom generation. ...
Although there will not be the ‘exclusivity’ appeal as many copies of an item of clothing is made, the price reduction will attract customers making them strong competitors in the market. Based on the primary resource found, the surveys depicted that majority (7 out of 13 volunteers) found Mr Price to have low prices and high quality items. When asked about Mr Prices strengths 8 out of 13 (61.5%) indicated that affordable clothing was a strength and is the reason they shop there. 3 out of 13 (23.1%) said they were easily
Warm Garment is one of the basic need of all human beings, serving the purpose of warm in cold weather and also give the skin protection from a lot of disease which occurred due to the harsh cold . Also the conditions of environment are not the same for people living around globe, varying from extreme cold regions and hot areas. One type of Garment can’t serve the purpose of protection from every climate, keeping in view the comfort of wearer. Garment for hot climates is normally loose and light weight, allowing evaporation of sweat easily. While the Garment of cold weather is normally bulky and used in more than one layer But we made that bulky Garment light weight and which give the excellent thermal insulation and protection against wind
With the rising temperature out there, it becomes necessary to update your wardrobe accordingly while ensuring that you avoid some of the most common summer fashion slip-ups. Although everyone has their own idea of what suits them and what doesn’t, there are a few general guidelines of summer fashion that would surely cast the spotlight on you if followed. Fashion requires one to be up-to-date with the trends in the latest clothing items and accessories, which can be easily bought from a variety of online marketplaces these days such as Kaymu. So read on to find out about the top three dos and don’ts of fashion in summer.
Fashion design was something I always loved. As a young child, I would always watch my mother sew clothes and, I grew up being fascinated in the things she would create. I’d always ask to be taught the inner workings of a sewing machine and hoped that that one day I would be able to sew. Eventually, the art of taking fabric and transforming it into something amazing started to become my hobby…Because of my mother’s artistic influence in my life, I was able to find my love for designing and decided that creating clothes was something I wanted to do. This ambition of becoming a fashion design student and a future fashion designer is one of reasons why I believe I’m the perfect candidate for the Fashion Institute of Technology.
While growing up, I realized the benefits a person has when they personally own their own business. You can make your own schedule, personally control your finances, and essentially have complete control of your business Of course upon this realization; I came to the conclusion that I was going to be my own boss. I have always taken pride in how I present myself including how I dress. The limitless nature of fashion and its versatility has always intrigued me. One empowering aspect of clothing that is so fascinating is how it enables people to express themselves. Because of these interests, I have come to the conclusion that I wish to own a fashion boutique. In order to pursuit the path of becoming a fashion boutique owner, it is essential that I obtain a degree in business management, evaluate my own skills that make me ideal for the job, and