The Los Angeles based American clothing manufacturer, distributor, designer, marketer and retailer brand American Apparel was founded by Dov Charney in 1989. It is a vertically integrated company and is known as one of the largest clothing manufacturers in North America. Turning into a major international brand, American Apparel is one of the rare examples of successful first world manufacturing compared to its competition from cheaper countries. The real question though is what issues are killing the company and causing them to file for bankruptcy yet again?
As American Apparels sales begin to tumble one must ask themselves what’s causing the consumer to draw away from the brand. Is it the high prices due to Los Angeles high labor costs? Or is it the fact that the U.S teenage clothing retailer has become known for its sexually charged advertising, sending out a negative brand image.
“It doesn’t have to be overtly sexual. There’s a way to tell our story where it’s not offensive. It is an edgy brand. And it will continue to be an edgy brand” – CEO Paula Schneider
But is this edgy image drawing customers away from American Apparels doors?
In October 2015, American Apparel filed for their first bankruptcy. The brand had associated themselves with skimpy designs and sexual advertisements in hopes of appealing to teens, and for a while they became quite successful. But in the end, the sexual advertisements paired with allegedly inappropriate behavior of their former CEO Dov Charney sent costumers running for the hills.
In hopes of winning back costumers, the brand then toned down its image. But contrary to these beliefs it was a move which drove away American Apparels original fan base, leaving the brand with no costumer and no voice. The teen market has begun to draw away from American Apparel and shifted towards other brans such as Urban Outfitters, Abercrombie and Fitch, and American Apparel, brands who’s images have remained the same throughout the years. As stated in Carren’s Blog, the world of brand loyalty can be fast and unforgiving. There are high stakes for companies who choose not to adapt to society’s new mentalities. As the brand struggles to find its fit in the fashion world and adapt to evolving styles one must ask themselves,
Can American Apparel really survive bankruptcy yet again?
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http://store.americanapparel.net/en/aboutus/index.jsp#slide
http://www.thefashionlaw.com/home/american-apparel-might-file-for-bankruptcy-again-land-buyer
https://blogs.ubc.ca/carrenhopkins/
http://www.dazeddigital.com/fashion/article/28779/1/a-brief-history-of-american-apparel
https://successstory.com/companies/american-apparel
http://www.businessinsider.com/how-american-apparel-imploded-2015-10
