Abercombie and Fitch: Shooting themselves in the foot

In a 2006 interview, Abercombie Ceo Micheal Jeffries callously summed up the snob appeal of the company ,”…good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that”. If that hadn’t garnered sharp criticism, Jeffries implication that only ‘cool’ kids wear their clothes had certainly raised a few eyebrows. Out of sheer dissent, customers such as Greg Barber gave his A&F clothes to the homeless, further exemplifying the rift and wide barrier between A&F and its stakeholders. A&F’s crumbling public image is further worsened when CEO Mike Jeffries states that he “doesn’t want larger people shopping in his store, he wants thin and beautiful people.” Targeting a niche market is acceptable but where do we draw the line as to what comments CEO’s can make and get away with?

The discriminatory behaviour portrayed with the assumption of thin people being ‘beautiful’  is both derogatory and condescending.This begs the question:  Is it not the CEO’s responsibility of a company to portray themselves as good role models for their stakeholders? After all, social corporate responsibility is imperative where marketing, especially to young kids, can be greatly influential.

Furthermore, class action lawsuits have been taken by employees, accusing A&F for discrimination against African Americans, Latinos, Asian Americans, and women. As if nullifying the value of a rather large segment of a potential market isn’t detrimental enough, upholding values of prejudice will only further stray away current stakeholders. Sales are down 10 percent, and its future looks grim. Hence, A&F is a perfect example of what a company ought not to do. After all, corporate responsibility always prevails.

References:

http://www.trefis.com/stock/anf/articles/198578/abercrombie-fitch-engulfed-by-inventory-issues-negative-press/2013-08-07

http://www.businessinsider.com/abercrombie-and-fitch-worst-controversies-2013-8?op=1

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