How Abercrombie made a comeback
Today, Explained
Deep Dive
Why did Abercrombie & Fitch face a decline in popularity?
Abercrombie faced a decline due to its exclusionary and racist marketing strategies, including offensive T-shirts and discriminatory hiring practices. The brand's overtly sexualized and exclusive image also alienated many consumers, leading to financial struggles post-2008 recession.
How did Abercrombie & Fitch attempt to recover from its scandals and financial decline?
Abercrombie revamped its executive team in 2019, focusing on inclusivity and diversity. They changed their aesthetic to feature fully dressed models and diverse casts, targeting people in their early 20s with more size-inclusive and quality-focused products. They also adopted a quiet relaunch strategy, leveraging social media influencers and word of mouth.
What was the impact of Abercrombie & Fitch's new strategy on its financial performance?
Abercrombie's new strategy led to remarkable financial success, with the brand becoming the best-performing stock on the S&P index in 2022, gaining 285%. It generated $4 billion in revenue with 10% year-over-year growth, positioning itself to hit a $5 billion revenue target.
How did Abercrombie & Fitch change its product design and target audience?
Abercrombie shifted from targeting teenagers to focusing on people in their early 20s. The product design moved away from hyper-sexualized and preppy styles to sleek, minimalist, and versatile pieces suitable for various occasions, including work and social events. The brand also expanded its size range to be more inclusive.
What role did social media and influencers play in Abercrombie & Fitch's comeback?
Abercrombie utilized social media influencers to quietly spread the word about its relaunch. This strategy allowed the brand to reach a broader audience without a big, critical announcement, enabling consumers to discover the brand's new image and products organically.
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