A Case History of American Teen Retailer Abercrombie and Fitch with Strategies to Re-Engage with the Millennial Consumer

Revitalising a failing brand: A case history of American teen retailer Abercrombie and Fitch with strategies to re-engage with the millennial consumer.

1 CONTENTS

Part one: Abercrombie and Fitch Part Two: Marketing Plan Appendix Audit Appendix 1: Millennial analysis Executive Summary (3) Vision and Mission (37) Appendix 2: Additional social trend Brand Profile (5) Brief introduction to Fitch (38) Appendix 3: Site Selection Internal Analysis: SMART Objectives (40) Appendix 4: A&F Financials Brand Identity (8) Key strategies (41-42) Appendix 5-5a: Competitor profiling The Consumer (10-11) Segmentation (45) Appendix 6: Pen Portraits Financials (12) Targeting - New consumer (46-48) Appendix 7-7c: Elemental Macro trend Marketing Mix: Re-Positioning (49-50) Appendix 8: Concept store floor plan Product and Price (14-16) New Brand Identity (50-51) Appendix 9: Chelsea Girl to River Island case study Place (17-20) Fitch Marketing Mix: Appendix 10: Burberry case study Promotion (21-23) Place (54-61) Appendix 11 Press Release External Analysis: Product (62-67) Appendix 12: Retailers using art and culture to drive footfall Competitor analysis (24-25) Promotion (68-83) Appendix 13: Future recommendations PESTLE analysis (26-28) Implementation and Control (84-87)

SWOT analysis (30-31) Financials (88) Bibliography

Ansoffs Matrix (32) Contingency Planning/Risk Assessment (89-90) Images

Strategic options (33-34) Conclusion (91)

Fig 1: Own Image

2 EXECUTIVE SUMMARY

The arrival of the digital revolution, the unavoidable volatility of the economic environment and the rise of globalisation has meant that all fashion brands have faced a significant challenge in terms of acquiring and retaining a loyal customer base. Some brands have coped with this challenge well, whilst others have struggled to maintain their customer loyalty.

With the market increasingly saturated by mass market retailers, as stated by Hines, T and Bruce, M (2007), ‘there is growing evidence of customer rejection of mass products and cloned stores, in favour of something which is ‘right for me’ meaning it has become increasingly challenging for brands to differentiate themselves.

Whilst some have used factors such as low cost, culture leadership or trend responsiveness to achieve this differentiation (Lynch, R.2012 p153), others have adopted a unique lifestyle persona, to engage and entice the consumer on a ‘deep, emotional level’(Kotler, P.2012:pg 267). It is evident that those who fail to take heed of any of these factors have suffered the consequences.

Abercrombie and Fitch is a prime example of one of these brands, which has disregarded Darwin’s Theory of evolution (1859), and is now suffering as a victim of the ‘unpredictable and fast-changing clothing industry’ (Davis, A.2013:p83), resulting in a significant decline in sales. As stated by Kotler and Keller (2012:p280); ‘reinforcing brand equity requires that the brand always be moving forward – in the right direction with new compelling offerings and ways to market them’, which the brand have evidently neglected to do thus far.

Focusing specifically on Abercrombie and Fitch, this report will use desk-based and secondary research to explore the reasons behind the deterioration of the brand and strategies for successful revitalisation. It is written from the perspective of an external marketing consultant with the intention of gaining approval from the company’s executive board.

In two parts, the report will firstly provide a detailed audit which will examine each element of the brand’s past and current business model in order to establish the brand’s key values and strategies (Wood, M.2013).

Part two, will detail a number of key new strategies, to engage with a profitable segment within the millennial generation, and to evoke a more inclusive and desirable brand image. This will involve reconnecting with its outdoor roots/heritage to develop an authentic, and more desirable brand portfolio.

The strategy will focus primarily on the development of new multi-sensory store concepts to be trialled in four locations across America, which will be supported by a compelling and visually inspiring promotional campaign.

The overall objective is to restore enhanced brand equity.

3 PART 1 ABERCROMBIE AND FITCH MARKETING AUDIT

4 BRAND PROFILE

Fig 2: David Abercrombie Fig 3: Ezra Fitch Established in Manhattan, New York in 1892, Abercrombie Co supplied ‘high quality camping, fishing and hunting gear’ and excursion goods, to those passionate about outdoor pursuits (Hudsen, B et al. 2009:p90). However, this concept was relatively short-lived after one of the company’s regular customer’s Ezra Fitch, became co-founder in 1909, instead opting to offer more general retail (Lepore, M.2011). Following Fitch’s retirement and the recruitment of an assortment of unsuc- cessful CEO’s, the company went bankrupt in 1977.

Between 1977 and 1988, the brand continued to lack direction until it was adopted by Limited Brands who purchased the company and appointed Mike Jefferies as CEO, who instigated another major transformation. Jefferies introduced Fig 4 the new ‘nightclub inspired’ ‘destination store’ (Kunde, A (2013) using attractive shirtless male models, strong perfume, dimmed lighting and loud music to market heavily logoed, casual luxury apparel to young teens. Riding the widespread desire for this new ‘Ivy league persona’ in the1990’s and early 2000’s the brand rapidly expanded, opening 22 international stores and 253 across America (Kunde, A (2013). However, as stated by Rupp, L (2014:online); ‘as teen shopping habits changed, Abercrombie didn’t’.

The uniformed and arguably elitist brand image provoked a plethora of negative press and now fails to resonate with the modern teen consumer (Maheshwari, 2012), contradicting Fig 5 the statement that Abercrombie and Fitch is ‘Idolized and respected, timeless and always cool’ (Abercrombie and Fitch Co, 2014).

Despite recently making a number of changes, including the exit of Mike Jefferies as CEO; the strategic decision to target the slightly older college student of around 21 years old (young millennial)(Feran, T. 2014) and the reduction of the Fig 7 heavily logoed product, the brand is still required to make radical adjustments if they want to regain lost market share and overcome widespread negative associations.

Fig 6 Fig 8

5 ‘Rooted in East Coast traditions and Ivy League heritage, Abercrombie & Fitch is the essence of privilege and casual luxury. The Adirondacks supply a clean inspiration to this preppy, youthful All-American lifestyle. A combination of classic and sexy creates a charged atmosphere that is confident and just a bit provocative. Idolized and respected, Abercrom- bie & Fitch is timeless and always cool’ (Abercrombie and Fitch Co, 2014)

Figs 9 6 INTERNAL ANALYSIS

It is crucial for Abercrombie and Fitch to examine its own resources and its current situation within the competitive environment (Jackson and Shaw, 2009). This will enable the brand to establish key flaws and strengths and make necessary changes to convey a more desirable image, and to achieve enhanced brand equity. The following chapter will outline the brand’s key attributes.

Figs 10-13 Abercrombie and Fitch Instagram photos (2015)

7 BRAND IDENTITY n actio d in ran BRAND ONION B Provide a mobile app, with music and The brand onion is shopping features. an effective tool, used to evaluate Abercrombie and Offer graduate schemes Fitch’s current identity and an array of career (Posner, 2011:p147). This will opportunities such as in- store modelling (brand enable the brand to iden- Provision of impressive ambassadors). tify aspects which need to flagship stores in a num- evolve in order to convey a ber of major interna- rsonality nd Pe more desirable brand image. tional cities, designed by Bra Selldorf architects. Active on social media, including Facebook, Twitter, Young Instagram and Pinterest. Athletic Fun lues nd Va Bra Omni-channel Sexy accessibility Quality Famously provide a multi-sen- Essence Provide an extensive assortment of sory in-store experience. rand high quality products including ‘knit B and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shirts, sweaters, and outerwear; personal care products; and Casual luxury ‘Abercrombie & Fitch is the accessories for men, women and kids’ Classic (Abercrombie and Fitch Co, 2014) essence of American privilege and casual luxury’ En- compassing a ‘preppy, youthful All-American lifestyle. Is the parent brand to the Hollister and (Abercrombie and Fitch Co.) Gilly Hick’s brands. (2014). Confident American, Ivy league Preppy ‘the Company is in the persona process of evolving its consumer engagement strategy to further develop Casual leading digital experiences’ Cool (Abercrombie and Fitch, co.2014) Vibrant ‘Formerly a hunting apparel retailer, this American lifestyle label targets young adults with a sexy image’ (Business of Fashion, 2015) The brand has also attempted to broaden their consumer base by distributing a selection of their products via the successful e-tailer Asos (Forbes. (2014). This may aid the brand in re-establishing its relevance with the target consumer, as stated by Euromonitor (2014:p31); ‘Asos’s position as a prime shopping destination and fashion authority for “20-something” consumers’.

Figs 14

8 Fig 15 Fig 16

Fig 17 Fig 18

Fig 19 Fig 20 9 Fig 21

THE CONSUMER

Wood, M (2013:p249), argues that a ‘concentrated marketing strategy’ can be a profitable targeting approach, which Abercrombie and Fitch have used successfully in the past. The issue is not that the method is invalid; more the way this has previously been executed which has been flawed (Kunde, A 2013)

The niche, preppy ‘Ivy league’ aesthetic that Abercrombie and Fitch had adopted no longer appears to resonate with millennial consumers - a generation reluctant to conform to a specific stereotype (Ma- heshwari, S. 2012). What’s more, by using university campus scenes, to market this Ivy League aesthetic (see fig 21 and 23), the brand has failed to address the increasingly diverse and complex millennial consumer group, leading to limited sales growth.

In contrast, UK competitor and ‘University outfitter’ Jack Wills have employed this niche strategy to their advantage, by capitalising on their preppy, British heritage lifestyle image (Moss, V.2015). Through enticing designer collaborations and engaging digital marketing tactics, they have managed to entice a broader, international consumer base which has resulted in a 5.2% sales growth in the last financial year (according to a report by WGSN News, 2014). It is clear that although both brands have employed a concentrated marketing strategy, Abercrombie and Fitch have failed to evoke the same level of desirability as Jack Wills.

Where Abercrombie and Fitch have failed, Jack Wills have succeeded in expanding their consumer base to target the millennial group. Al- though they only target a particular segment of this group, as stated by Bilton, R. (2015) “If you’re reaching millennials, you’re already getting somewhere’.

This implies that in order to progress as a brand, Abercrombie and Fitch need to invest in creating a more desirable and inclusive brand image in order to attract new and potentially more profitable consumer segments, thus enabling them to reach the desired market position. See Appendix 1 for further analysis of the millennial consumer.

Fig 23

Fig 22

10 The segmentation table below establishes the characteristics of Abercrombie and Fitch’s current loyal target consumer. It is essential for brands to segment their target market in order to understand their wants and needs and to establish whether or not an alternative segment would be more profitable.

Demographics Psychographics

-Young Men and women - Purchase to ‘fit in’ (Ogle, J et al. 2014), and to enhance status -Aged 18-22 (Maslow’s hirearchy of needs). - They are concerned with -Millennials the opinions of others due to their ‘community orientation’ -High school/ University student (Lazarevic,V 2012). - Socio-economic group: Middle Class (ABC1 equivalent) - Belong to the early majority/late adopters in terms of trend - At college with a low yearly income, most likely KIPPERS- adoption (not particularly adventurous with fashion). (Kids In Parents’ Pockets Eroding Retirement Savings) - Sporty, interested in maintaining a good physique. - Multi-cultural (due to the brand’s international presence). - Has a confident self image, likes to belong to ‘elite groups’ - Have a busy social life, whilst at university or home. - Aspire to excel professionally. - Enjoys cultural/travelling experiences.

Usage and Benefit Geographics (International)

- Not particularly price sensitive, use parents money and America and Canada- California, New York, Georgia, Texas, student loan to pay for apparel. Virginia, Hawaii. Ohio etc.. - Whilst most of this generation is ‘notoriously disloyal (Lazarevic,V.2012) to brands, this consumer is loyal to Aber- Asia- China, Japan, South Korea, Singapore, Hong Kong crombie and Fitch and admires the preppy aesthetic. - Purchases different items across the range. Europe- Spain, Germany, UK, Belgium, France, Denmark, Ire- - Seek augmented garment benefits such as comfort and land, Netherlands, Italy style. - Is inclined to purchase online, but will occasionally visit the physical store for the experience.

Fig 24: The Abercrombie and Fitch typical customer. Table 1: Segmentation Table

11 PERFORMANCE Sales by region ($Bn) 3.0

REVIEW (FINANCIALS) 2.5

2.0 Failing to adapt to the changes in the current With regards to the industry life cycle, the market (Davis, A.2013:p83), has been reflect- company’s weak financial performance suggests 1.5 ed in Abercrombie and Fitch’s performance in that the brand is undergoing the ‘decline phase’ recent years. Chart 2 shows that, having peaked (Lynch, R.2012 p880) and in relation to the in 2012, Abercrombie and Fitch’s sales have de- BCG growth matrix (Lancaster, G and Massin- teriorated significantly throughout 2013-2014. gham, L.2011P:478), Abercrombie and Fitch are 1.0 This is in sharp contrast to direct competitor now the ‘dogs’ of the group, due to their low American Eagle, whose lower price points and market share and growth, which has evidently product revival enabled them to experience a been attained by more agile fast fashion players. 0.5 ‘robust fourth-quarter performance’ (Baldwin, C. 2015) There is a bleak outlook for 2015, in terms of 0.0 regaining lost sources of brand equity and so a US Int Web Sales in the US have been falling since 2011, but firm, convincing strategy is required to resolve 2011 2012 2013 2014 this has been counterbalanced by increasing continued haemorrhaging of their sales. Chart 1 international and internet sales. However, 2014 also saw a lagging decline in these non-domes- As a cash rich business, the company can refur- tic markets, perhaps as a result of bad word of bish and change direction using some of their mouth, which evidently began to spread outside retained profits. This will cause a reduction in the US. Whilst internet sales grew in 2014 by profits (or a loss) for a period which would be Sales and Gross Profit ($Bn) 10%, it is apparent that nearly all of this growth accepted by the stock market if the recovery 5.0 occurred in the first half of the year, as the plan was deemed profitable. It is clear that their company only experienced 1% growth in quar- current re-vamp strategy is not drastic enough, 4.5 ter 4 (including a 5% decline in non-domestic in that it does not fully address the root causes markets). of the problem. 4.0 The decline of Abercrombie’s sales accelerated during 2014 in all regions/channels, quarter by 3.5 quarter, compared to 2013. The latest quarter 4 results indicate that internet sales were flat (and 3.0 indeed negative outside the US). So regardless of the fact that Abercrombie’s internet growth in 2014 appeared reasonable at 10%, by the end 2.5 of the financial year; internet growth was near zero. 2.0

1.5

1.0 Sales Gross Profit 2009 2010 2011 2012 2013 2014 Chart 2 The financial analysis has been extracted from the company’s financial review on the Abercrombie and Fitch Co (2014) annual report (see appendix 4)

12 MARKETING MIX The identification and provision of an appropriate and appealing marketing mix is fundamental in order for an organisation to flourish. Whilst currently lagging in consumer demand, it is apparent that each element of the Abercrombie and Fitch’s marketing mix (including place, promotion, product and price) will need be investigated in order to formulate and implement strategies that will fulfil the customer’s needs (Andrew, M and Kim, D (2007:p358).

Fig 25: Abercrombie and Fitch Campaign images Spring/Summer 2015

13 PRODUCT AND PRICE

Product Price The product is the most tangible element of the marketing mix, and, as Whilst Abercrombie and Fitch has prided itself on the ‘capability to sell prod- stated by Keller, K et al (2012:p71) is the ‘heart of brand equity’. Therefore ucts at full retail price’ in the past (Hancock, J.2009: p90), the current elastic it is crucial for the brand’s product offering to meet the needs of the con- demand for their products demonstrates the consumers reluctance to pay sumer, in order to maximise sales (Lynch, R,2012:p306). However, Aber- the full, premium price points for the merchandise (Kunde, A.2013). crombie’s deteriorating sales suggest that the brand’s reportedly ‘boring’ merchandise has failed to do so (Trefis Team, 2014). The brand has consequently resorted to adhering to a ‘temporary and permanent discount’ pricing strategy (Jackson and Shaw, 2009:138), using their Referring to the notion of Shankman, S (2015), taking the position of a social media sites to frequently promote their heavily discounted merchan- lifestyle brand often entails the changing of the core product. Abercrombie dise. Jackson and Shaw (2009:p141) highlight that this strategy could argu- and Fitch have responded to this by expanding into new categories and ably taint a brand’s premium positioning, as the marking down of stock is larger sizes, in an attempt to attract a broader consumer base (Abercrom- an ‘admission of failure’. This is reinforced by Keller, K et al (2012:p80) who bie and Fitch Co.2014). This has also involved the adoption of a ‘fast-fash- highlight that such frequent sales discounts are likely to lead to ‘decreased ion product strategy’, which, as stated by Jackson and Shaw (2009:p113) is quality perceptions and increased price sensitivity’. an example of an effective way to improve a ‘lacklustre product offering’. Berman, J. (2014), further highlights the risks of ‘price cutting’ for Aber- This strategy has, however, been criticised by Neel, M (2014:online) in an crombie and Fitch, stating that it ‘may only make things worse for the article in the Business of Fashion, which states that it may be disadvanta- teen apparel’. However, it is evident that the company currently does not geous for Abercrombie and Fitch to exclusively employ ‘up-to-the-minute’ possess sufficient enough brand equity to command a price premium. trends as they don’t correspond with the brand’s ‘core aesthetic’. Whilst Therefore the brand will have to make significant adjustments to success- the brand’s heavily logoed product may no longer be coveted by many, it is fully revitalise and justify their price points and to provide the customer also apparent that mimicking the ‘trend-led’ product portfolios of the more with ‘added value’ (Keller, K et al.). This can be achieved by establishing agile fast-fashion competitors will cause them to lose any sense of differen- and promoting aspects of differentiation, such as quality, which may prove tiation. This was evidenced when competitor J Crew, saw a decline in sales beneficial for the brand at this stage. As stated by Ross, J and Harradine, R. due to ‘straying too far from their roots’ (Bloomberg, 2015) to instead (2010:p353) ‘many people use price as an indicator of quality.... consumers become more ‘trend-led’. often assume that higher prices reflect higher quality garments’.

Henceforth, it may be beneficial for the brand to simply refer to the latest trends without ‘slavishly following them’ which will assist the brand in regaining relevance without completely disconnecting from the brand’s origins. The adoption of a more ‘eccentric’ product range may also be beneficial, due to the US consumer’s desire to ‘add uniqueness to their lifestyle’ (Trefis Team, 2014), This has proven a profitable strategy for Urban’s Free People brand whose bohemian product portfolio boosted the revenue of the entire group (McGrath, M (2014)

Table 2: Product and Price

14 ‘The Company sells a broad array of products, including: casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women and kids’ (Abercrombie and Fitch Co, 2014)

Apparel Hoisery accessories 3% 3%

Children's wear 8%

Sportswear Womenswear 13% 34%

Footwear 17% Menswear 22%

% of Total Sales Per Product Category (Data extracted from Euromonitor, 2014)

Chart 3: A&F Sales per category

15 PRICE ARCHITECTURE

Top Priced product

Woolrich with A&F Patrol down short Parka £460

Fig 26

Mid- Premium priced product

Slim straight A&F Preppy fit Pattern open jeans shorts shoulder boho £88 £48 dress £58

Fig 29

Fig 27

Fig 28

Low priced product

Strappy Muscle fit tee Strappy Bral- Swim £16 ette- £10 Bottom £18 Fig 30

Fig 32

Fig 31 Table 3: Price Architecture

16 PLACE

LOCAL VS GLOBAL Sherman, L. (2014), argues that there is (generally) no such thing as over exposure in fashion, stating that it is ‘important to remember that mass exposure can mean major sales’. However, analysis undertaken by Euromonitor (2014) contradicts this, illustrating that Abercrombie and Fitch’s ‘intensive distribution’ strategy (Wood, M.2013) within the US market has caused them to lose their initial sense of exclusivity and desirability. The lack of domestic demand has forced them to close 62 US stores in the last fiscal year and will continue to close more in the coming year (Rupp, L.2014).

Recognising that ‘globalisation is one of the main drivers of fashion change’ (Hines, T and Bruce, M, 2007), Abercrombie and Fitch is now focusing marketing efforts on international growth with the SMART objective (Chaffey, D.2012) of increasing international penetration to approximately 50% of total sales (Abercrombie and Fitch Co, 2014). The brand is currently expanding in areas such as China and Japan, in addition to Western Europe which has been described ‘strategically important’ in terms of achieving brand building objectives.

However, it is apparent that at this critical stage, the brand cannot ignore the American market where, in 2013, 71% of the company’s total apparel and footwear sales were made (Abercrombie and Fitch Co, 2014). Therefore, equity-building marketing activities should seemingly be focused here first before investing too heavily in international locations. This was reinforced in a report by Euromonitor (2014:p36) which states that Abercrombie’s domestic market ‘remains vital in the short-to-medium term’. 17 Fig 33: own image: Primary research: Abercrombie and Fitch flagship store (London) ‘the customer’s in-store experience is still viewed as a primary means of communicating the spirit of each brand. The Company emphasizes the senses of sight, sound, smell, touch and energy CHANNELS OF DISTRIBUTION by utilizing the visual presentation of merchandise, in-store marketing, music, fragrances, rich fabrics and its sales associates to reinforce the aspirational lifestyles represented by the brands’ (Abercrombie and Fitch Co, 2014) Bricks and Mortar stores The continuous transformation of a brand’s ‘place’ is crucial, however, Abercrombie and Fitch have disregarded this by sticking to the same store design for too long. In sharp contrast to the vibrant, brightly lit and product dense stores of its competitors (see following page), it is evident that the time-worn and arguably overwhelming combination of perfume, music and dimmed lighting now fails to resonate with the target market (Rupp, L. 2014). This is reinforced by Hancock, J (2009:p89); who states that ‘newspaper reporters, academics, and parents have continually noted that the store is over-the-top’.

Whilst the company have recently begun to implement changes within a number of their American stores (such as enhancing the lighting), the latest financial results indicate that this has failed to boost sales. With the customers increasing expectations of the in-store experience, it is apparent that the brand will need to incorporate more effective and relevant footfall drivers in order to attain the millennial’s loyalty. This is strengthened in reports by LSN Global (PSFK Labs, 2014), confirming- that brands need to establish ‘a space to transact in culture, experiences and relationships’, they state that brands needs to learn how to ‘Be The Hub’. Competitors such as Tommy Hilfiger have responded to this (see appendix 5) by incorporating state-of-the-art technology to enhance the in-store experience, and, by doing so they have created a more ‘engaging and seamless buying approach”. (CEO Daniel Grieder cited in WGSN news, 2015). At the same time, retailers such as An- thropologie have adopted a more ‘back to basics’ approach, by using art and craft to drive footfall (see the appendix 12 on retailers capitalising on art and culture). Henceforth, the development of a more cultural and digitally innovative physical store may be beneficial for the brand in terms of regaining relevance and achieving enhanced brand equity, particularly in combination with a different range of content. E-commerce The company have recognised the importance of digital marketing in terms of their future commercial success (Chaffey, D. 2013) by focusing their growth strategy on direct-to-consumer sales channels with the objective of increasing internet penetration to ‘25% of net sales The brand operates 46 web- or greater’ (Abercrombie and Fitch Co, 2014). According to reports by Euromonitor, (2014:p31) ‘e-commerce operations, generated US$777 sites (both e-commerce and million in fiscal 2013, contributing 19% of the company’s total net sales’, which indicates profit potential for this channel. This is strengthened by m-commerce) which have recent statistics by Statista (2014), which confirm that ‘B2C e-commerce sales amounted to more than 1.2 trillion US dollars in 2013’. However, been translated into 9 differ- despite recently revamping the website, to appeal to a slightly older target consumer, it appears that Abercrombie’s e-commerce site still ent languages and have been lacks the personalisation and interactivity provided by competing brands. designed to ‘reinforce the brand’s lifestyle’ (Abercrom- In terms of enticing the millennial consumer, LS:N Global’s Walker, D. (2014) states that they use the online shopping channels ‘equally for bie and Fitch Co, 2014). entertainment and as paths to purchase’. Competitiors Urban Outfitters and Topshop for example have responded to this, by providing blogs and services such as personal shopping to maximise their B2C relationships, which has resulted in enhanced brand loyalty (Chaffey, D.2012). Henceforth, it is crucial for the Abercrombie and Fitch to maximise customer involvement, providing them with the opportunity to connect with the brand on a human level (perhaps using video or more personalised services such as outfit building tools) (Mansfield, N. 2014). This should improve their online conversation levels and ultimately decrease the bounce rate (Westnedge, H.2013). Table 4: Channels of Distribution

Number of retail stores operated by Abercrombie and Fitch Co (2014): Location A&F A&F Kids Hollister Gilly Hicks Total USA 253 131 458 1 843 Internationally 22 5 129 7 163 (21 international countries) Total 275 136 587 8 1006

18 Fig 34-40: London Flagship images: Primary Research.

Due to the increasing prevalence of e-commerce, which has triggered a significant regression in American mall traffic (Cheng, A.2014), brands are now required to provide incentives to entice customers into store.The images above illustrate Abercrombie and Fitch’s dark store interiors, in sharp contrast to the light and spacious examples of competitor stores below (Jack Wills, Brandy Melville, River Island, Primark).

19 OPERATIONAL STRUCTURE

Abercrombie and Fitch have recently begun to operate a more vertically integrated structure which has enabled them to serve customers with maximum efficiency, using the designs and quality which the company mandates (Wood, M.2013). By sourcing products directly from multiple vendors in up to 20 countries (including the US), the company is able minimise costs whilst guaranteeing supply (by spreading the risk).

Finished products are sent to distribution centres (DC’s) in Ohio for circulation to North American stores, with additional DC’s in the Netherlands, the United Arab Emirates and in Hong Kong serving non-US customers (Abercrombie and Fitch Co. 2014).

Armstrong, S. (2014) signals that consumers are becoming increasingly concerned with ‘knowing the origin of your clothes’ to avoid encouraging use of sweatshops in developing countries and in support of initiatives such as ‘Made in America’. As such, Abercrombie and Fitch should consider expanding their range of domestically produced apparel. De- spite the likely higher costs, this also has a number of potential advantages, including brand reputation, better control of quality, lower transportation costs, and prevention of traffic restrictions and avoidance of exchange rate issues.

Fig 41: A&F distribution centres Ohio elford.fcdev.net-

20 Communica- tions channel PROMOTION Flagship Store Averse to the use of traditional forms of advertising (such as print or television) Abercrombie and Fitch have historically centered promotional activ- Launches ity on the launching of flagship stores in key international cities (Euromonitor.2014:p21). The significant media coverage generated by these flagship launches (Manlow, V.2013) have thus far enabled the brand to rely on word of mouth to broadcast their ‘iconic in-store experiences’ and to drive footfall (Abercrombie and Fitch Co. 2014). With reference to Lynch, R (2012:p149), in order for a fashion brand to achieve ‘sub- Whilst this strategy may have proven effective in culturally parallel locations (such as the UK), the brand has failed to adapt and ‘feed on the aesthet- stantial competitive advantage’ and consumer ics’ of its newer locations (Rees, T and Firth, P, 2012). For example in Japan, where as reported by Marx, D (2010: online), the brands brash American awareness, it must be constantly renewed with store in Tokyo (and use of topless models- see fig 43) ‘clashes with Japanese fashion and shopping culture in almost every possible way’. The dangers of suitable advertising to support this. Abercrom- ignoring fundamental cultural differences is further highlighted by Keller, K et al (2012:p785), who highlight the importance of avoiding ‘standardised bie and Fitch have responded to this notion marketing’ as it often results in ‘the lowest common denominator’. Henceforth, the brand must adopt a more effective localisation strategy in order by communicating its brand’s personality via a to sustain growing international sales. number of channels in attempt to keep pace Social Media Responding to the influence of social media on the millennials purchasing behaviour (Gurau, C. 2012), Abercrombie and Fitch has re-focused market- with the ‘aggressive promotional activities’ of their ing communication efforts on its various online platforms (Abercrombie and Fitch co, 2014). These include Facebook, Snapchat, Twitter and Instagram US competitors (Abercrombie and Fitch Co. where they have found particular success in the latter with their following of 1.7 million, surpassing competitors such as American eagle who have a (2014:p9). comparatively low following of 968k. According to marketing strategy consultant Jeff Fromm (2014), Instagram ‘is one of the top media channels used by Millennials on a daily basis’, which emphasises its targeting effectiveness. Abercrombie and Fitch’s integrated marketing communications strategy (see table 4) has the Nonetheless, it is apparent that the brands current social media content lacks consistency. For example, the content of the somewhat female domi- potential to reach the millennial target market nated Instagram profile contrasts significantly to the content of the male dominated Twitter account (see supporting images on the following page). who, as stated by Lazarevic,V (2012:p50) are the Henceforth, it is fundamental for the brand to address this issue, especially when targeting the millennial generation who expect high levels of con- generation most ‘heavily influenced by marketing sistency (Ma, Y and Niehm, L (2006). This is further reinforced by Saviolo, S and Marazza, A.(2013:p72), who maintain that a brand must exhibit a level communications presented across multiple forms of consistency across all channels in order to attain sufficient brand authenticity. of media’. However, as previously stated, it is apparent the ‘Ivy league’ themed content fails to What’s more, it is apparent the brand’s current posts lack differentiation from both competitors and its own brand Hollister. (see page 23 for Insta- resonate with this consumer group, and may be gram content examples). This further reinforces the need to alter current social media content in order to be perceived as unique and to attain the perceived as intimidating or off-putting by many desired sources of brand equity. (see fig 42). Henceforth, it may be beneficial for the brand to develop more approachable yet Direct Mail Mar- With a total of ten million email addresses on their customer relationship management database (Abercrombie and Fitch co,2014) the brand fre- aspirational promotional content and to ex- keting quently use direct mail as a method of communicating sales promotions and the arrival of new collections. Whilst Kotler, P (2012:p533), emphasises plore additional/alternative methods of commu- the targeting effectiveness of this strategy, as it allows brands to interact directly with the customer, Jackson and Shaw (2009:p178) paradoxically nication such as video marketing and celebrity highlight that it is often perceived as junk mail. This must be considered when targeting the ‘fickle’ millennial consumer, who is evidently disparaging endorsement to create customer interest and of invasive promotional tactics (Lazarevic,V 2012). Henceforth, the brand is required to incorporate more eye-catching content and subtle, yet en- long-term brand value. With reference to Geczy, ticing incentives within each email which are reflective of their personal values in order to attain their loyalty. This is reinforced by Chaffey, D (2012) A and Karaminas (2012:p16), these tactics have who highlights the importance of the ‘WIFM’ (‘what’s in it for me?’) factor when aiming to acquire and retain customers. the potential to give them a new ‘lease of life’, You-Tube It is evident that Abercrombie and Fitch’s You-tube channel has been somewhat neglected, with new content being uploaded only once every few which has boosted the sales of similarly strug- months. According to an article in the Guardian, 2014), with regards to ‘potential reach’, You-tube has been described as ‘peerless’, as it ‘receives more gling retailers such as J Crew and Burberry (see than one billion unique visitors every month’ (Trimble, C. 2014). Statistics by emarketer (cited by Austin, C. 2013) also highlight the impact of video mar- appendix 10). keting on purchasing behaviour, reporting that ‘more than half of consumers feel more confident in their purchases after watching an online video, and 66 percent who watch videos more than once will eventually purchase something’. This was evidenced by American apparel retailer Wren, who experienced a significant boost in profits following the release of their ‘First Kiss’ video, which has now surpassed over 80 million views (Hooton, C. 2014), empha- sising the impact of online video marketing in terms of brand awareness and profitability.

With forecasts by Neilsen (cited by Trimble, C,2014), indicating that ‘64% of marketers expect video to dominate their strategies in the near future’ , online video is evidently a crucial element of a brand’s content marketing strategy. Abercrombie and Fitch should capitalise on the consumers increased appetite for video, to communicate a new, more desirable brand essence, whilst providing them the entertainment which they desire (Spybey, K. 2015). This will ultimately create a positive buzz around any new collections and would help to build brand loyalty.

Table 4: Comunications Channels

21 ABERCROMBIE AND FITCH PROMOTION Facebook advertising Twitter page

Fig 42: Abercrombie and Fitch April 2015 campaign

Fig 43: Store opening-China

You-tube profile

Instagram page

Abercrombie and Fitch Social Media reach

9.3 million 628K 1.5 million followers followers followers

22 Hollister Instagram Abercrombie and Fitch Instagram

23 POSITIONING The brand positioning map illustrates where Abercrombie and Fitch sits amongst its direct and indirect com- High Price petitors within the highly competitive American apparel market (Trefis Team, 2014) in terms of price and desirability.

It is fundamental for the brand to establish who the direct and indirect competitors are in order to create a more appealing ‘point of difference’ (POD) (Keller, K et al. 2012) and to develop a new, unique selling proposition Ralph Lauren (USP) which will enable them to attain Michael Kors ‘sustainable competitive advantage’ (Lynch, R.2012) Tommy Hilfiger Levi’s J Crew (see following page for further analysis on the competitive environment)

Free People Abercrombie and Fitch

Banana Republic Jack Wills Hollister Desirable/aspirational Undesirable ASOS Topshop Urban Outfitters Zara ASOS Gap American Apparel Aeropostle Forever 21 New Look H&M Uniqlo American Eagle Primark

Key: Low Price

Premium competitors Abercrombie and Fitch Mid/Mass Market competitors (European/US) Competitive Environment Competitive Fig 50 24 Fig 51 Competitor American Eagle store exterior

COMPETITOR ANALYSIS

See appendix 5 and 5a for competitor SWOTS

Threat of existing players In the American market, Abercrombie and Fitch’s biggest rivals are firms such as Teen retailers Aeropostale, American Eagle and Urban Outfitters. However, it is evident that these competitors have been much more responsive and adaptable to the changing market than Abercrombie and Fitch and, as highlighted in the financial overview, have been able to retain and enhance relevance to this market segment at a much faster pace (Baldwin, C. 2015). With reference to reports published by the US Census Bureau. (2011), this has been achieved through low costs and a more inclusive brand ethos. Fig 52: Competitor Urban Outfitters store exterior

Whilst Teen retailers are key competitors to Abercrombie and Fitch, due to the brand’s high price points, premium American lifestyle players such as Ralph Lauren and Tommy Hilfiger also pose a threat. However, these brands have managed to achieve ‘substantial competitive advantage’ (Jackson and Shaw, 2009) by reinventing traditional American pieces, ‘while Aber- crombie lags behind’ (Neel, M.2014).

European fast-fashion giants such as Zara, and H&M must also be considered as competitors to Abercrombie and Fitch, as well as ‘new entrants on the market’ (Porter’s five forces) such as Primark and New Look. These brands (who are currently expanding across the US market) have succeeded in enticing a broad market due to their appealing ‘cost leadership’ strategies and their speed to market (Jackson and Shaw, 2009). So, whilst these brands may not be overtly targeting the same consumers as Abercrombie and Fitch, their strategy of appealing to a wide cross section of consumers across a wide demographic, has resulted in some erosion of Abercrombie and Fitch market share.

However, despite the clear advantages that these competitor fast-fashion brands appear to offer consumers, it is apparent their rapid stock turnover can compromise product quality, which may disappoint the increasingly high expectations of the modern consumer. What’s Fig 53: Indirect ‘New entrant’ competitor Primark (Own image) more, with events such as the Rana Plaza disaster and reports of the negative impact these brands are having on the environment (Abnett, K and Amed, I, 2015), it is evident that consumers are becoming increasingly sceptical of the ‘fast fashion’ phenomenon (Armstrong, S. 2014). Therefore, whilst there could be an argument that the brand may reap the benefits of being more trend responsive (Rosenblum, P. 2015), as previously stated, the adoption of a fast-fashion approach may prove detrimental for the Abercrombie and Fitch brand.

External Environment Instead, as a time-honoured brand, Abercrombie and Fitch have the opportunity to achieve competitive advantage by capitalising on its heritage, authenticity and quality, which these newer entrants lack (Aldenton, S 2014).

25 PESTLE

With reference to Andrews. M and Kim, D (2007) ‘a company’s survival in today’s market place depends on its response to changing lifestyles, markets, regulations, technologies, and economic reforms’.

Therefore, the following PESTLE analysis was carried out, in order to distinguish influential trends occurring in the external environment which may impact the organisation (Jackson and Shaw, 2009). These can then be exploited through marketing planning (Wood, M. 2013) External Environment External

26 POLITICAL/LEGAL Key drivers: Strict employment laws, anti-discrimination and the demand for ‘Made in America’

The political and legal forces (Jackson and Shaw, 2009), refer to the approaches and legal restrictions which may impact the brand’s future strategies (with particular focus on the US market). A key example is the introduction of the Equality Act in 2010, which has meant that businesses are required to follow a strict legal framework to prevent discrimination. Abercrombie and Fitch have evidently failed to adhere to this, and have thus been frequently scrutinised for being unethical and for discriminatory practice (Dishman, L. 2015). The recent ‘landmark religious discrimination case’ further evidences this, whereby a Muslim woman was rejected employment due to wearing a head scarf (Roberts, D. 2015). Also, despite expanding their famously small size ranges in an attempt to overcome this discriminatory image (Bhasin, K. 2014), it is evident that the brand have repeatedly failed to tap into the modern consumer’s inclination to embrace diversity and inclusivity (Peterson, H 2013). This has had a profound effect on the company’s overall sales. Going forward, the brand must adopt a more inclusive brand ethos, to enable them to overcome past negative associations. This is imperative when targeting the millennial generation, who, according to Pew Research Centre are the most ‘ethnically and racially diverse cohort of youth in the nation’s history’ (Keeler, S and Taylor, P. 2015).

Another political/legal factor which may affect the company is President Obama’s trade policy which seeks to promote growth and support more well-paying jobs in the United States (USTR. 2015). According to a recent report by the United States Trade Representative (2015), this has also provoked a return of the aforementioned ‘Made in America’ initiative, which encourages people to buy (higher priced), home produced product. Consequently, it may be beneficial for Abercrombie and Fitch to support this trend, by exclusively offering American made goods, both domestically and outside of the US. This has proven a profitable strategy for brands such as American Apparel and Apple, and may result in the overall enhance- ment of the brand’s image (Li, S et al. 2014).

ECONOMIC Key drivers: Economic recovery, decline in unemployment rates and the increase in consumer confidence (Euromonitor. (2015).

‘Sales in fast fashion begin to decline as consumers adopt a less-is-more attitude and the high street capitalises on an appetite for opulence with the launch of premium collections’ WGSN Think Tank. (2015).

Recent strong improvements in the US economic landscape have generated a growth in employment levels (Mcrae, H.2015), which has boosted the consumers’ confidence and average per capita spending (according to reports by Euromonitor (2014:online). This has also boosted the confidence of retailers, who predict a 42 per cent sales volume lift within the next year (Cadman, E (2015). These economic improvements have resulted in a new sense of optimism, including the millennial generation - particularly the older members - who have had to vigilantly economise for the majority of their adult life and are now predicted to fill the job roles of the members of the baby boomer generation (Petro, G,2013:online). This is reinforced by a survey undertaken by Deloitte (2015:p2) which states that they ‘are generally a little more optimistic about economic prospects than they were a year ago’. However, as highlighted in a report by BBC News (2014: online), having to ‘scrimp and save’ for a substantial amount of their adult lives has resulted in a ‘less-is-more attitude’ which has resulted in a more restrained attitude to spending (WGSN Think Tank. 2014).

As stated by LS:N Global’s Walker, D (2014), this has also provoked a rise in the demand for quality (as opposed to quantity) amongst these older millennials. As a result, premium and luxury retailers have reaped the benefits, whilst budget fast-fashion retailers have experienced a slight sales decline (Euromonitor, 2014). This was evidenced in an article in Drapers, which confirms a 3 month drop in sales for fast fashion retailer New Look (Geoghegan, J. (2015:p5)|, whilst the sales of brand’s such as ‘affordable luxury’ retailer Michael Kors continue to grow, indicating that consumers are willing to invest in a high-quality image (Euromonitor (2014).

Therefore, Abercrombie and Fitch now have the opportunity to capitalize on their premium quality offering alongside the development of a more appealing brand portfolio, which would recapture the interest of the older members of the millennial generation.

SOCIAL Key drivers: The ageing population, the desire to travel and a growth in the outdoor market

One of the biggest global demographic trends in recent years is the increase in life expectancy, leading to an ageing population. In terms of the US market, predictions by the US Census Bureau indicate that by ‘2050, the population aged 65 and over is projected to be 83.7 million’ which indicates the increasing significance of the older consumer segments (Ortman, J et al.2014). The Financial Times contributor Burgess, K (2012), also highlights the vast number of brands appealing to the same (highly saturated) youth demographic of around 16-22 years old. Henceforth, it may be beneficial for Abercrombie and Fitch to refocus their targeting strategies on an older consumer, perhaps recreating their short-lived Ruehl No.925 brand (aimed at the 25-35 market).

There has also been a shift in the traditional order of life milestones, as people are ‘settling down’ much later in order to ‘avoid commitments’, instead indulging in experiences such as travelling and thus negating the conventional cycle (Parker, K External Environment and Wang, W. 2014). This has been described by sociologists as ‘the changing timetable for adulthood’ (Henig, R. (2010). This is strengthened by a survey carried out by Pew Reasearch Center analysis of census data, in 2012, indicating that around one in five American adults ages 25 and older had never been married (Parker, K and Wang, W. (2014). At the same time, work has become more all-consuming due to the emergence of the smart phone and ‘always on’ technology. As stated in a report by WGSN (Williams C.2015), this has allowed millennials to take a more ‘fluid approach’ to work, allowing them to have a more flexible, ‘on-the-go career’ enabling work whilst travelling.

Both of these social trends highlight the growing tension between the desire to escape whilst remaining connected. As stated by Bell, A. (2015) this has contributed to the global tourism boom and a significant growth in the outdoor market (see appendix 7a). Abercrombie and Fitch have the opportunity to capitalise on this trend by re-connecting with their outdoor, nature-inspired roots. The brand could provide the consumer with a retail environment which allows them to escape and yet remain connected when mobile, using m-commerce and their social media platforms.

(See appendix 7-7C for Elemental macro trend)

Table 5 : PESTLE 27 TECHNOLOGICAL

Key drivers: Rise in mobile technology and the demand for a seamless multichannel experience.

‘The Tomorrow Store will be mobile, personal, experiential, informed, inline, social, we-orientated and theatrical’ (Firth, P and Buchanan, V, 2014)

Radical developments in the technology world have presented the retail industry with a vast number of opportunities. One of the most influential developments is the emergence of mobile commerce. With e-tailor ASOS reporting that 30% of its traffic was directed from mobile devices in 2013 (Euromonitor, 2014) and with predictions that there will be ‘more than 196 million smartphone users in the U.S. by the year 2016’ (Statista, 2015), it is apparent that smartphones are a becoming a fundamental component to the modern consumer’s shopping experience (Manthorpe, R and Maiki, J. 2015).

In spite of this, evidence suggests that the physical store still plays an important role in the consumer’s path to purchase (Harvard Business Review Staff, 2011). Perhaps as a result of the ‘showrooming trend’ (where a customer visits the store for the ‘experience’ then proceed to purchase online), it is apparent that customers’ now have increasingly high expectations of their offline experience (Wood, M.2013). This has been reinforced by research undertaken by AT Kearney (2015) which confirms that‘two thirds of consumers who purchase online use the store before or after the transaction’ (Righetto, H, 2015). There is consequently more pressure on brands to achieve differentiation by devising unique and personalised ‘one-off’ experiences (Humphris, I, 2014), which engage people with both real and virtual world interaction (Abnett, K. 2015). Pioneering brands, such as Burberry, have responded to this by adopting state of the art technology to generate a seamless link between virtual and bricks-and-mortar stores (WGSN News, 2015). Similarly, UK retailer Monsoon has used in-store technology for functional purposes by utilising mobile point of sale devices in all stores to replace traditional transactional tills and thus enhancing the customer’s experience (Retail Week (2015:p29).

Henceforth, it is fundamental for Abercrombie and Fitch to focus on enhancing both its on and offline channels for both functional and entertainment purposes, particularly when targeting generations who remember an offline world (Banks, L (2013). This will help the brand to establish relevance and boost profits.

ENVIRONMENTAL

Key drivers: Transparency demand and the adoption of ‘enviropreneurial marketing strategy’ (Polonsky, M. 1999).

Over the past decade the fashion apparel industry has been accused for causing serious damage to the environment. With recent reports by the World Bank estimating that ‘textile dyeing and treatment contribute up to 20 percent of the entire world’s industrial water pollution’ (Bedat, M and Darabi, S. 2014), an increasing number of consumers are expressing their environmental concern and are therefore demanding brands to provide a certain level of transparency (Jobling, A. 2013). This has provoked brands to maximise their ‘green marketing’ credentials by disclosing information about their environmental practices (Lynch, R.2012 p82).

However, the emergence of ‘green washing’ (where a company claims to be green whilst continuing to implement business practices which have ecological impact, (Wood, M.2013)), has heightened the increasing need for transparency. This is highlighted by Beverland, M (2009:p47) who maintains that; ‘leaving things up to the consumers imagination is something you never want to do’.

With regards to the millennial consumer, as expressed by Jobling, A (2013), despite past perceptions that ‘sustainability is not sexy’, it is evident that this generation will opt for brands that openly confront environmental issues (Gurau, C. 2012). Fromm, J and Garton, C (2013:p163) further reinforce this notion, by highlighting their desire to ‘make a difference in the world’. This is, however, contradicted by Bedat, M and Darabi, S. (2014), who state that ‘millennials still consume vast quantities of unsustainable and unethical fashion from some of the most profitable apparel-makers in the world’ which suggests that some of this generation still prioritise their appearance and being ‘on trend’ over environmental concern.

Nonetheless, as more evidence surfaces about the negative effect of fashion consumption patterns, the demand for environmentally friendly brands is likely to surge (Bedat, M and Darabi, S. 2014), which has been evidenced by brands such as Patagonia (cited by Saviolo, S and Marazza, A (2013), who state that ‘Every time we do the right thing for the environment, we make a profit’.Therefore, it is imperative for Abercrombie and Fitch to maximise their contribution to preserving the environment (which is currently insignificant). This will enhance prospects of achieving the millennial consumer’s loyalty. External Environment External

Table 5.1: PESTLE

28 ‘While losing ground to competitors, Abercrombie & Fitch still has tremendous brand potential. But to get things back on track, the company must adjust its approach to product, merchandising, marketing and retail’ (Neel, M. 2014)

Fig 54-58 29 SWOT

The following SWOT analysis summarizes the brand’s current internal strengths and weaknesses as well as any external threats and opportunities. This can be used to generate future strategies with maximum effect (Wood, M.2013), for example, some of Abercrombie and Fitch’s strengths could lead to potential opportunities.

Strengths: Weaknesses:

- The brand has developed a strong international presence and high brand aware- - Despite the brand’s extensive history, Abercrombie and Fitch fail to project an engaging and aspira- ness (using a selective distribution strategy in countries outside of the US). tional brand narrative or celebrate its origins.

- Famous for their use of experiential marketing:, the brand has developed a memo- - Counterfeit products have caused a loss of money (similar situation to Burberry before the brand rable in-store marketing strategy that aims to appeal to the senses (use of perfume, was revitalised). loud music etc). As stated by Kunde, A (2013) it ‘was one of the first conceptualisers of the destination store’. - Due to controversial comments made by ex CEO Mike Jefferies and provocative marketing strategies (e.g using topless male models), Abercrombie and Fitch has a tainted reputation for being superfi- - Provide iconic flagship stores in a number of key international locations, designed cial and appearance orientated. by Seldorf Architects. - The Abercrombie and Fitch campaign imagery is often perceived as intimidating and exclusionary (US - Offer an omni-channel business model, whereby products can be purchased via Census Bureau, 2011). the website, in-store, via their mobile app and via e-tail ASOS. - The brand has been frequently scrutinized by the press for unethical practises and has faced a num- - High quality products, compared to their fast-fashion rivals. ber of legal issues regarding the discrimination of employees (Dishman, L. 2015).

- Strong American heritage. - The brand’s selection of heavily logoed product has been described as boring and ‘formulaic’ (Dish- man, L, 2015) and is no longer desirable or relevant in the current market. - Authentic brand: As the brand was established in 1892, the brand has offfers history and authenticity which newer brands fail to offer. (Aldenton, S. (2014). - Failure to adapt quickly enough to the changing retail environment and failing to meet the demands of the consumer. - Offer a number of graduate schemes and internships based at their Ohio head- quarters, providing comprehensive training to potential future employees. - The original target market has grown up and has different purchasing motives and tastes.

- Strong social media following. - Abercrombie and Fitch’s outdated stores have been described as overwhelming and ‘over the top’ (Hancock, J, 2009). The use of dimmed lighting and loud music restricts visibility and causes confusion.

- Not digitally innovative.

- The company lacks transparency and fails to openly execute green marketing activities.

- Social media content is inconsistent.

-There is evidently a brand overlap between the Hollister and Abercrombie and Fitch brands who targeting a similar demographic (lack differentiation between the two brands, in terms of product, price and marketing techniques) (Euromonitor, 2014).

- The brand has been over-exposed and arguably over-reliant on the US market (Euromonitor, 2014).

- People strategy: ‘Stripped-to-the-waist’ male model sales assistants are no longer perceived as aspirational; instead they are seen as intimidating and off-putting ’ (Armitage, J. 2014).

Table 6 : SWOT analysis 30 Threats: Opportunities

- The brand faces competition from a vast number of popular fast fash- - Using the brand’s authentic US heritage as a key USP, the Abercrombie and Fitch could capitalise on the ‘rise in the popu- ion retailers on the market (such as European Zara and Topshop). larity of niche premium brands’ (Paton, E.2014), and the consumer’s demand for heritage and authenticity by exploiting the brand’s original roots (selling apparel for outdoor pursuits). This has the potential to evoke a more authentic and desirable brand image, whilst tapping into the widespread desire for ‘time-worn American classics’ (Neel, M. (2014), which, according - Teens are no longer interested in the ‘cool, popular kid’ image or to Keller, K et al (2012:p797), has proven an ‘important source of equity’ for brands such as Levi Strauss and Nike. sporting a brand’s logo to define their identities, instead opting for a mix of brands, thus displaying low levels of brand loyalty (Rosenblum, P. - Capitalise on the widespread demand for ‘Made in America’ (USTR., 2015), by restricting manufacture to American facto- 2015). ries.

- Competitors who convey a less discriminatory brand image. - Closure of the Ruehl No.925 stores (aimed at a slighter older demographic) has left opportunities to target the over 25 market. - Threat of the volatile economy which may cause some customers to reduce consumption or avoid premium priced brands. - Exploit new communication channels, and develop a new promotional campaign to illustrate a new brand ethos (which is in line with the target consumers interests), perhaps via online video promotion, exploiting their currently neglected You- tube channel (as highlighted in the promotional analysis). -Threat of price savvy value brands such as Primark: ‘the value market sector has outperformed the rest of the clothing market and that it will - Develop a creative and more digitally innovative in-store experience, to transform and modernise the brands ‘destination continue to grow’ (Ross, J and Harradine, R. 2010:p352). store’ (Kunde, A (2013) and to satisfy the high expectations of the American consumer (Kent, T and Omar, O.2003).

- Overseas markets (such as Japan) may not accept the brand’s image. - Improve the brands omni-channel experience, creating a seamless experience which consistency reflects the brands new and more desirable essence across all channels. - The modern consumer has low brand loyalty and is inclined to brand switching and the mixing of market levels (Hines and Bruce, 2007). - Adhere to the modern consumers ‘thirst for culture’ (WGSN Think Tank. 2014), by collaborating with artists, magazines or musicians, using strong synergy to achieve competitive advantage (Lynch, R.2012).

- Drive further growth in existing markets with profit potential such as Western Europe and Asia.

- Celebrity endorsement, to appeal to the ‘celebrity-influenced’ millennial consumer (Runyan, R (2013),”

- Corporate re-branding (Muzellec, L and Lambkin, M. 2006) change or shorten the name to disguise negative connotations.

- Explore other forms of advertisement (such as traditional print), to maximise reach.

- Increase involvement with different charities and increase green marketing activities to appeal to the environmentally conscious millennial consumer (Lu, L etc al.. 2013)

- Maximise promotion of the ‘Diversity and Inclusion’ scheme, to overcome the brand’s discriminatory image and to suf- ficiently address the diversity of the millennial consumer group (Lu, L etc al.. (2013). This could involve using ‘real people’ within campaign imagery (moving away from the usage of topless models) which more people would be able to identify.

- Tapping into the millennial consumers desire to travel by opening pop up stores or permanent stores in busy travel locations such as airports and train stations (WGSN Think Tank. (2014).

- Introduce in-store service such as cafe’s or a personal shopper service to meet the high service expectations of the older generation Y consumer (Jin Ma, Y and Niehm, L,2006)

31 ANSOFF’S MATRIX

Following the auditing process, Ansoff’s Matrix (1957), highlights further potential opportunities the brand could grasp to overcome current negative equity. This is a beneficial device which may assist the brand in determining future strategies.

Product development: Market Penetration - Continue to expand the product portfolio by - Due to the closure of their short-lived increasing investment in niche categories for Ruehl No.925 stores, there is no longer a example outdoor wear plus size, maternity and brand under the Abercrombie and Fitch sportswear to attract a broader customer base Co name targeting the over 25 market. By (Westnedge, H, 2015) establishing the interests and purchasing behaviours of this consumer segment, they Existing markets - Start to incorporate products made from sustain- have the opportunity to penetrate this cur- able materials such as organic cotton to improve rently neglected millennial sector. This will the brand’s corporate social responsibility and to also enable them to differentiate from the respond to the demand for environmentally friend- target markets of their Hollister sub brand. ly products. This will help to minimise negative associations.

- Similarly to competitor Tommy Hilfiger, Fitch could extend into luxury ranges to appeal to consumers willing to invest in a high quality image (as highlighted in the PESTLE).

Market development: Diversification

- Take advantage of the improvements in the eco- - Re-introduce and modernise the brands original nomic landscape and adjust to a higher premium/af- outdoor sportswear apparel to appeal to new New markets fordable luxury price points to target a slightly older market segments, tapping into the US consumers consumer with more disposible in come, demand for outdoor wear (Euromonitor, 2014)

- Focus on regaining domestic interest by trialling a new store concept in various US locations and make - Adhering to a more effective localisation strat- adjustments based on consumer feedback. egy, Abercrombie and Fitch could develop new product lines/services according to different - Continue globalisation strategy- perhaps entering cultures and tastes and continue to drive further additional emerging markets. growth within international markets (such as the UK) which haven’t been as overexposed.

Table 7: Ansoff’s Matrix

32 STRATEGIC OPTIONS

Considering the threats and weaknesses revealed throughout the audit, it is evident that the brand are required to make considerable changes in order to regain relevance. As stated by Andrews, M and Kim, D (2007), ‘the negative image [of a brand] can lower profits and repel repeat customers’. Therefore each element of the current business model will need to be addressed and revitalised in order to overcome negative associations and to avoid the further haemorrhaging of their sales.

The following page outlines key conclusions made from the audit and recom- mends a number of potential equity building strategies which the company could consider implementing, in order to achieve ‘strategic reinvention’ (Gec- zy, A and Karaminas, V, 2012) and regain lost market share.

Fig 59:

33 AUDIT CONCLUSIONS AND FUTURE RECOMMENDATIONS

Targeting As addressed in the consumer analysis, by employing the ‘Ivy league’ stereotype, the brand has limited itself to an incredibly narrow and seemingly disappearing subculture. By neglecting to address profitable segments within the complex millennial generation (Peterson, H. 2013), the brand has evidently restricted its own financial growth.

In addition, there is an overlap between the Hollister and Abercrombie and Fitch brands and therefore the brands could diversify their marketing mixes, to appeal to different consumer segments and help to maximise revenue. As highlighted in the Ansoffs matrix model, this can be achieved by continuing to use the Hollister brand to target the ‘cash-strapped’ teen consumer (Kunde, A.2013), whilst aiming the Abercrombie and Fitch parent brand at a slightly older demographic. This has proven a profitable strategy by competitors such as Urban Outfitters, who have reaped the benefits of their sister brand Free People which targets an older demographic (Mcgrath, M 2014). What’s more, the brand should endeavour to evoke a more inclusive ethos, especially when targeting the millennial segments, who openly embrace diversity (Peterson, H, 2013). Product Analysis of the Abercrombie and Fitch’s current product strategy highlighted that whilst the brand’s logoed merchandise or Ivy League aesthetic may no longer be seen as desirable, it could be (Outdoor argued that the recent adoption of a a fast-fashion strategy and their drastic cost-cutting may be equally as detrimental for the brand. This is strengthened by Jackson and Shaw (2009:p87) who Heritage) highlight that ‘if a fashion product is fundamentally wrong then no level of price reduction, widened distribution or increased promotion will necessarily make it sell’.

As the ‘heart of brand equity’ (Keller, K et al. 2008), product innovation and relevance is essential. Therefore, to avoid straying too far from its roots, Abercrombie and Fitch could adopt a similar strategy to the likes of Burberry (see appendix 10) and Ralph Lauren, by capitalising and on the brand’s under-marketed heritage. This could involve re-connecting with the brands outdoor origins and tapping into the growth of the outdoor apparel market (WGSN Trend Watch, 2014), whilst, at the same time, satisfying the millennial consumers need for brand depth and authenticity (Beverland, M,2009). The brand could also respond to the demand for ‘Made in America’ goods (USTR. 2015), by exclusively manufacturing products within selected USA factories which would provide sufficient justification for their original premium price points. This would fundamentally enable the brand to achieve differentiation from the newly established fast-fashion rivals and thus providing the consumer with ‘added value’. Place The significant decline in American mall traffic (Cheng, A. 2014) along with a failure to move with the times on store design and use of digital media, has led to declining sales and the closure of a considerable number of Abercrombie and Fitch’s current stores. Whilst competitors such as Tommy Hilfiger have begun to evolve and digitalise their in-store experiences, recognising that it can play an important role in developing ‘sustainable competitive advantage’ (Lynch, R (2012:p2), it is evident that the brand’s current offering lags behind (Neel, M. 2014).

The store is a physical representation of the brand and the company should aim to recapture domestic interest by trialling concepts to address the millennial’s desire for digital innovation, culture and community, alongside introducing a more desirable brand portfolio. The PESTLE analysis also indicates that new calmer well-lit stores could be used to address the blurring of the lines between wanting to escape whilst remaining connected (WGSN Forecast team, (2014), plus use of digital media will enable them to ‘extend and enhance the existing position of the company’ (Lynch, R (2012:p276) Promotion Abercrombie and Fitch could also begin to build relationships with the millennial consumer by developing and executing a new promotional strategy, which would aim to reflect their personal interests and values more closely than their current offering.

This would involve exploiting methods of communication such as: - Developing a range of influential promotional material in response to the impact of online video on the modern consumer’s purchasing behaviour (Austin, C. (2013). - Using celebrity endorsement to generate more positive brand associations (Andrews, M and Kim, D, 2007) - Collaborating with an influential magazine to create a more cultural and profound Brand experience, enabling them to overcome the appearance orientated reputation of the past. - Enhancing the brand’s digital marketing strategies via various social media channels, aiming to create a more inspiring, progressive and digitally innovative lifestyle experience. - Produce more inclusive yet aspirational campaign imagery, incorporating ‘real people’ to convey a more all-encompassing, approachable brand image. Name Change Keller, K et al. (2012:p750) argue that a brand’s name is the ‘most important brand element’ and may therefore be difficult to change. However, it could be argued that in order to overcome past (Corporate Re- negative associations, altering or shortening the brand’s name may be beneficial strategy for the company at this point. It could be considered risky to completely change the brand name from Aber- brand) crombie and Fitch because (as highlighted in the SWOT analysis), there is strength in the heritage of the brand, which could be lost if abandoned completely. This is strengthened by Muzellec, L and Lambkin, M. (2006:p807) ‘For a new name to be launched, however, the old name has to be abandoned, an action likely to nullify years of branding effort in terms of creating awareness. Since name awareness is a key component of brand equity’. Therefore, by rebranding as ‘Fitch’, it is hoped that this will retain existing loyalty of current customers but attract a new customer base through the whole rebranding and repositioning process. Fitch is recommended because it arguably has a more contemporary association than Abercrombie and would therefore convey a more modern and 21st century brand image.

Table 8: Conclusions and Recommendations

34 35 PART 2 MARKETING PLAN

36 VISION AND MISSION

As highlighted in the financial analysis (see page 12), given the brand’s position within the ‘decline’ phase of the retail life cycle (Lynch, R.2012), it is apparent that a radical recovery plan is required in order to be accepted by the stock market.

The audit summarised the external situation and identified the fundamental areas of Abercrombie and Fitch’s current business model which must be addressed in order to meet the demands of the millennial consumer. From these key findings, a multi-pronged marketing plan has been formulated, involving the implementation of effective strategies to support the brand in achieving ‘sustainable competitive advantage’ (Lynch, R.2012),within the saturated retail environment.

With reference to (Keller, K et al. 2008:p688);‘Revitalizing a brand requires either that lost source of brand equity be recaptured or that new sources be identified and established’. The brand will respond to this, taking inspiration from the Elemental macro trend (see appendix 7) and the growth of the outdoor market (WGSN Trend Watch, 2014), by reconnecting with its original outdoor roots.

This will be exhibited using a new store concept to trial an evolved brand essence and a new product portfolio, within the economically recuperating American market. If these are received well, the brand will gradually make the transition from Abercrombie and Fitch to ‘Fitch’ internationally.

MISSION The principle goal is to be recognised as a desirable and inclusive international lifestyle brand, particularly targeted at the older millennial consumer (aged 24-32) which will also entice a wider audience due to its more inclusive ethos. This will ultimately increase the market share, revenue and profits, by enticing new and existing customers and help to regain lost sources of brand equity.

Fig 60:

37 A BRIEF INTRODUCTION TO FITCH

The Fitch Proposition:

vision and values

Style AND Substance The new Fitch amalgamates outdoor gear with timeless, wardrobe staples which will be interspersed with a selection of stylish on-trend pieces, all exclusively made in America. Created for those precious moments of ‘down-time’ (outside the 9-5), whether it’s via extreme outdoor pursuits or cozied up in a coffee shop.

Fitch is unequivocally committed to providing high quality, environmentally friendly products that correspond with the free spirited, multifaceted lifestyle of the consumer, consistently providing them with comfort and style indoors or out. From simple yet luxurious cotton tees to insulating outerwear with enhanced textile technologies and an ‘on-trend’ fit.

Fitch aims to bring together a community of like-minded, free spirited individuals, providing them with an aspirational brand experience alongside high quality product that will inject a sense of optimism, adventure and possibility into the chaotic and time-short nature of the modern world. We want our customers to feel like they can go anywhere and achieve anything.

This evolved outlook/ethos will be incorporated within every aspect of the business model, from the development of the product, throughout each of the online platforms and in the designs of the bricks and mortar stores which will be subtly injected with experience enhancing digital innovation (providing the customer with a place for community as opposed to mere consumption). These key elements will all contribute to the projection of an aspirational lifestyle which the target customer would want to be a part of. Bringing stories of adventure and discovery to life

Fig 62: own Image

Fig 61 38 ‘Revitalising and repositioning a brand through gradual, incremental modification of the brand proposition and marketing aesthetics can be considered a natural and necessary part of the task of brand management in response to changing market conditions’ Muzellec, L and Lambkin, M. (2006).

Fig 62: own Image

39 SMART OBJECTIVES

The following SMART objectives (Chaffey, D. 2012) listed below have been set based on the key conclusions made from the audit. These will then be will be supported by a number of short and long term strategies, in order to achieve the brand’s mission.

SMART objective Rationale

- Increasing awareness of the new brand and implementing strategies to attain the loyalty of the ‘highly coveted’ millennial gen- Brand Awareness eration (Valentine, D.2013) will assist the them in overcoming its Increase awareness of the new brand portfolio currently undesirable brand image. As a generation with significant to 20% of the 24-32 age segment by the end of purchasing power, reaching them with a more relevant and desira- the year plan. ble ethos will encourage repeat purchases and enable the company to gain market share.

Financial objective - To regain relevance in the highly competitive retail environment. Revenue increase and overall performance of Fitch concept stores to be 25% higher than - To justify the decision to rebrand Abercrombie and Fitch and equivalent exisiting A&F stores by the end of the introduction of the new store concept. the first quarter (compared to 2014 results)

Customer Acquisition - To ensure the company is providing a seamless multi-channel shopping experience, particularly desired by the millennial Increase concept store and online footfall by generation. 10% compared to an equivalent sized existing store over the next 1 year - To succeed and be recognised as a more innovative player in the increasingly competitive fashion market

Table 9: SMART objectives.

40 KEY STRATEGIES

Following the change of the name to ‘Fitch’ (only in the concept trial) to indicate the rebranding process and to help disguise negative associations (Keller, K et al. 2012), the following strategies will be implemented in order to achieve the specified SMART objectives and to achieve superior value over competitors.

Whilst it must be recognised that product development is crucial for the re-branding of Abercrombie and Fitch, for the purpose of this marketing plan, place and the promotion will be the key focus.

‘In strategic management we need to move beyond the obvious and comfortable into the new and interesting’ (Lynch, R,2012:p283)

Fig 63:

41 Strategy Tactics Rationale

Strategy 1 (Key Strategy): New store concept (US) to be - To mark the beginning of the transition from ‘Abercrombie and Fitch’ to ‘Fitch’ launched in August 2016 Place of Distribution - To trial the new ‘outdoor heritage’ inspired men’s and womenswear ranges and to see if the rebrand receives a positive response from the public (Musher, L.2010) Trialled in 4 key locations across Amer- ica, including the New York flagship Launch of a new, digitally innovative, - To help revitalise the brand’s currently undesirable image. and 3 satellite stores (Georgia, Santa multi-sensory ‘destination store’ concept, Monica and San Francisco) to trial a new ‘outdoor heritage’ inspired - To address the ‘showrooming trend’ (Wood, M.2013:p160), highlighted in the PESTLE analysis. product portfolio and new, more desirable - To re-establish a sturdy B2C relationship with the older millennial consumer. brand essence. The Fitch stores will be more than just a place of consumption, it - To achieve ‘selling environment differentiation’ (Jackson and Shaw, 2009), which will adhere to the customer’s growing be a place of community. rejection of ‘cloned stores’ (Hines, and Bruce, 2007), and stand out on the high street amongst its rivals.

- To address the blurring of the lines between wanting to escape whilst remaining connected (or the physical and digital world) (WGSN Forecast team, (2014).

-To recapture domestic interest before focusing on driving growth in international markets.

- Designed as a vehicle to launch the new brand and store concept into the US market, and to provoke interest in Strategy 2: Acknowledging the significance of on- international markets. Integrated marketing communications line video content in terms of reaching the millennial consumer (Trimble, C. - To reinforce the brands new key values and personality, 2014). The first in a series of promo- The IMC strategy aims to support the launch tional videos will be launched entitled - To create a buzz and promote awareness of the Fitch concept, using the popular celebrity Leah Jenner to ‘personify of the new brand portfolio and to effective- ‘The Journey’ featuring Leah Jenner. the brand’ (Lazarevic,V, 2012:p55), in order to entice the millennial target market. ly illustrate the brands new ethos. This will maximise liklihoods of success by acquiring - To drive footfall to the store and boost traffic to the e-commerce site (Spybey, K. (2015) and thus achieving the customer acquisition objectives. and retaining customers, encouraging positive word of mouth and boosting sales. - To enhance the emotional experience of the consumer and to create an aspirational brand image, thus supporting the re-branding efforts.

- To reach out to today’s ‘time-precious’ audience, enabling them to quickly understand the brand’s new offering (Spy- bey, K. 2015).

Concept store launch events to take - To continue building brand awareness and customer interest. place prior to the official concept store launch to the public. - To support the launch of the new store concepts and new brand values.

- To maximise exposure to the millennial target market. Collaboration with Folk Lifestyle Mag- azine - To reinforce the brands new ethos.

- To inject an element of culture into the store.

- To strengthen the rebranding process.

‘Fitch Stories’ Instagram screens (Guer- - To increase customer interactivity with the brand rilla marketing) - To maximise awareness of the new brand.

- To create a buzz.

- To increase customer participation both in and outside of the store, giving them the opportunity to interact with the Fitch brand and product, outside the purchasing mind-set (Yarrow, K and O’Donnell, J, 2009p117) Table 10: Key Strategies 42 OBJECTIVES AND SCOPE IN SUMMARY Brand Awareness The longer term objective is the attainment of brand Increase awareness of the new awareness (of the new Fitch brand portfolio to 20% of the concept) and enhanced 24-32 age segment by the end of brand equity which will ul- the first year timately lead to a growth in Financial objective market share. Revenue increase and overall performance of Fitch concept stores to be 25% higher than equivalent existing A&F stores by the end of the first quarter (compared to 2014 results). Customer Acquisition

Increase concept store and online footfall by 10% compared to an equivalent sized existing store over the next 1 In Scope year - 4 concept stores

- Promotional Activity

- Concept samples of new product range Out of Scope

- Rolling out of concept stores to the rest of the domestic and international markets

- Marketing activities/strategies beyond year 1 (including international distribution)

- Product development (full merchandise planning)

-Revitalisation strategies for Hollister and Gilly Hicks sub brands.

Fig 64

43 SEGMENTATION, TARGETING AND REPOSITIONING

44 Fig 65: Own image SEGMENTATION

Due to the increasing expectations of the modern consumer and the fragmentation of target markets (Jin Ma, Y and Niehm, L 2006), marketers are required to develop a superior understanding of their characteristics and purchasing motives to strengthen and preserve B2C relationships. Therefore, in order to achieve ‘customer lifetime value’ (Wood, M.2013), the brand should endeavour to address their diverse needs more effectively.

As highlighted in the audit, the brand have already strategically altered focus from the teen market to the millennial generation, recognising their profit potential due to their vast size and current significant purchasing power (Lazarevic,V.2012:). This generation will continue to be the main focus for the brand, however Fitch’s new; more inclusive and desirable ethos is predicted to entice a broader range of consumers. Therefore, following the process of strategic segmentation (Kotler, P. 2012), the three consumer groups below have been identified as the segments which hold the most profit potential for the brand.

Despite varying tastes in style and life stages each of the consumer groups share common characteristics, in particular, their desire to retreat to the outdoors, their adventurous spirit; their need to escape the burdens and pressures of modern day living and their digital fluency. These characteristics can be exploited through effective marketing strategies.

Consumer A (Core consumer) Consumer B (Potential Consumer) Consumer C (Potential customer) Older Millennial Young Millennial Gen X 24-32 19-23 35+

- Currently focused on themselves, career, travels, as - Studying (with aspirations to excel professionally) or starting -Either starting to think about having a family or married with opposed to marriage and starting a family data’ (Parker, their career. children. K and Wang, W. (2014). - Is an early adopter, in terms of trend adoption. - Working professional (managerial role). - Leisurely activates include music, fitness and socialising. - Displays low levels of brand loyalty (Gurau, C. 2012) -Will opt for quality over quantity, purchasing relatively infre- This consumer also relishes in outdoor pursuits (Ber- - This consumer lives in urban surroundings and loves the quently due to the prioritisation of family etc (Walker, D, 2014). win, L,2010). They will make time to frequently escape city, but loves attending outdoor festivals in the summer. They - They want value for their money and have high service expec- to the countryside or to the coast, to walk the dog, go will often purchase a vast number of outfits to wear to these tations (in terms of product and overall shopping experience) camping, etc. festivals. (Rees, T, 2014) - Will make an effort to attend outdoor music festivals - Very price sensitive due to their low disposable income but - Enjoys outdoor pursuits and is inclined to go on hiking and such as Coachella (CA) and Sasquash (WA). has a desire to stay on trend so will therefore opt for lower camping holidays. - Belongs to the early majority in terms of trend adop- priced, fast fashion retailers. They often seek discounts and - Aims to lead a balanced lifestyle between personal and career. tion- eager to appear stylish but is not a slave to the borrow money from their parent (KIPPERS- Kids In Parents’ -Passionate about the protection of the environment. trends. Pockets Eroding Retirement Savings). - Deeply concerned with personal health and wellness, regularly - Mixes market levels, will occasionally purchase state- - Despite their concern will the state of the environment, they participates in yoga classes and is prepared to spend more mon- ment luxury/premium pieces as well mid-market fast often see fashion items as disposable (Bedat, M and Darabi, S. ey on healthy, fresh, organic foods (Rees, T, 2014). fashion retailers, to inject a bit of variety into her ward- (2014). - Opts for timeless classics and functional pieces that will last. - robe. - Have grown up immersed in the digital world and now inte- They buy clothes for protection and comfort (Ruckman,J, 2005) -DINKY or HENRYs’ (High Earners Not Rich Yet) (Bell, grate technology into their everyday lives (Moore, M.2012) - Is likely to have a ‘fixed brand portfolio’ (Young and Rubicam, A.2015) - This consumer is reliant on their smart phone and addicted 2014) meaning they are likely to be loyal to a smaller number of - Strong sense of brand awareness (Gurau, C. 2012). to social media. They will use the various platforms to commu- specific brands and are therefore less experimental than younger - Expects brands to establish a connection/relationship nicate with peers and to seek the latest fashion trends (par- consumers. with them, this consumer, embraces personalised prod- ticularly via Instagram - They are in the early to late majority in terms of trend adop- ucts and has high service expectations (Jin Ma, Y and - Due to this consumer’s inclination to shop online, they re- tion. Niehm, L (2006). quire incentives and entertainment to be tempted into enter- - Appreciates technology and has an increasing usage of social - Use social media to stay informed with trends and the ing a physical store. media and the internet, but isn’t as reliant on it as younger con- news and communicate with friends. - They have a desire to belong (Maslow’s hierarchy of needs), sumers. but are enticed by brands with diverse product offerings which - Will use the internet for apparel purchases, and enjoys watch- enable them to express their individuality (Ogle, J et al.2014). ing video content online. (see further analysis on page 47) Table 11: Segmentation Table 45 TARGETING

The audit highlighted the benefits of employing a ‘concentrated marketing strategy’ (Wood, M, 2013) and therefore Fitch will continue to use this strategy moving forward. How- ever, it was also highlighted that the brands past approach within this strategy lost relevance to its target market which evidently restricted their financial growth.

The SWOT analysis underlined a consumer-led shift away from ‘ostentatious and mainstream mega-brands’ which has triggered a growth in the popularity of niche, premium brands (Paton, E.2014). Therefore Fitch’s new, unique outdoor heritage brand portfolio will be aimed at the arguably overlooked older millennial consumer of around 24-32 years old (consumer A), continuing to use a concentrated marketing strategy.

By tailoring the new marketing mix to the male and female consumer within this specific segment, Fitch will be able to compete cost-effectively whilst establishing enhanced value over mass market giants.

At the same time, it is also advisable to avoid the exclusion of other consumer segments (see previous page) which hold profit potential especially, as highlighted in the audit, being too uninclusive has been detrimental for the brand in the past. This is reinforced by Chernev (2012), who highlights the dangers of ‘over segmenting’. Therefore the brand will strive to convey an inclusive, approachable brand essence that is likely to appeal to a range of demographics.

46 NEW TARGET MARKET (Consumer A) Demographics This consumer profile below is a further analysis of Fitch’s core consumer, who has been identified as holding the most profit- po tential for the brand. This will allow Fitch to formulate the most effective marketing strategies to develop meaningful B2C relation- Segmentation Target Consumer ships and maximise chances of brand loyalty. (see appendix 6 for pen portraits on the male and female Fitch consumer). Age 24-32 Generation Generation Y (Millennial) Occupation and life Young professional- working up the career stage ladder. Education Highly educated- most likely with a degree. Usage and benefits Social Grade USA Middle Class Income $52,000 a year. User type Regular HENRYs’ (High Earners Not Rich Yet) and Price This consumer is now progressing in the work place and enjoying having more disposable income (Gurau, C. 2012).. However, YUPPIES (young Urban professional) sensitivity having to ‘scrimp and save’ for a substantial amount of their adult lives (BBC News (2014:online), means that they are unlikely to spend as freely and thoughtlessly as younger generations. Therefore they are now more inclined to pay a price premium Geographics (Runyan, R (2013) for quality brands which reflect their personal values (Gurau, C. 2012). Housing Type Modern style apartment in urban town/ Having ‘settled’ for lower quality fast fashion products in the past, this consumer is now eager to spend a little more on higher (Urban, suburban or city. The consumers at the older end of the quality products (both classic and on-trend) that will last longer. rural) spectrum may be moving into houses in the suburbs, having worked their way up the Purchasing This consumer enjoys shopping in spacious stores that stimulate and entertain them (Ma, Y and Niehm, L (2006) and is partial career ladder. motives/ to browsing both online and in-store (Walker, D (2014). Region US: California, San Fransisco, Washington, Behaviour Virginia, Having experimented with a range of different unconventional or daring styles and brands throughout their teens/early 20’s, this consumer has now established their identity and is no longer concerned with adopting every new trend. They now opt for more inconspicuous items, with a more classic aesthetic. They are more concerned with how the clothing is made and its Lifestyle/personality functionality, as opposed to its level of fashionability (Segran, E. (2015).

Will still occasionally purchase fast fashion products to add ‘variety’ to wardrobe, however will opt for more ‘one of a kind’ Lifestyle Still in the relatively early stages of their career, the target consumer premium priced products most of the time (Ilaria, V and Codeluppi, B (2013). This consumer is supportive of the ‘Made in has a fairly busy lifestyle, aiming to juggle work, socialising, hobbies America initiative’ (see PESTLE), due to a strong sense of patriotism and their admiration for ‘country-specific product’ (Bell, A and spending time with the family. This older millennial has contrasting (2015). priorities and interests to the younger millennials but will place equal emphasis on entertainment and leisure time (the WGSN Forecast As confirmed by a study by the Boston Consulting Group (cited in the Economist, 2014) this consumer is ‘geared to pleasure team, (2014). rather than to possessions’, making them less inclined to buy ‘things’. Interests/hobbies Fitness and participating in outdoor pursuits (staying active- walking, Purchase Will primarily opt for a smaller number of quality products over a vast amount of less quality products, purchasing when nec- running, gyming, hiking etc) holidays, travelling, art, music, socialising, and con- essary as opposed to thoughtlessly (Walker, D, 2014). food, cooking/baking, eating out, festivals, Has an overwhelming desire sumption for adventure (Fromm, J and Garton, C (2013:p128) Enjoys active, out- patterns doorsy holidays in locations such as Austria as well as more contemplative, relaxing holidays in places such as Bali. This consumer relishes Attitudes/ This consumer is also ambitious and strives to succeed and make a positive difference in the world of business (Deloitte in cultural experiences and is part of the ‘global tourism boom’ (Bell, Opinions (2015). However, they feel that their personal relationships, their involvement with society and the local community has higher A.2015) value than their financial stability (Cooke, S. 2014).

Is an early adopter of technology (Fromm, J and Garton, C, 2013), but As an environmentally conscious consumer, they are increasingly concerned about the effect products and services may have has an increasing interest in remaining unconnected as much as they on the environment, as well as health and the community (Lu, L etc al.2013). can throughout the day. They expect transparency and social responsibility from the brands they buy from (Bedat, M and Darabi, S. (2014) and will generally opt for socially responsible companies which openly support good causes (Valentine, D. (2013). Despite the higher costs, Self image - Belongs to the early majority (in terms of trend adoption) this consumer will often opt for organic clothing and food, and consider sustainable packaging as an important aspect when - Contradicting the younger millennials disposition to ‘demand the making purchasing decisions (Jordan, A. (2015), due to embedded environmental concerns (Durmaine, B.2012).. latest trends’ (Runyan, R (2013), this consumer is trend aware but doesn’t follow them religiously. Brand Loy- Whilst a vast number of this consumer group are ‘Variety seekers and there for display low levels of brand loyalty due to alty sheer volume of choice (Gurau, C. 2012), it apparent that some may be ‘habitual loyals’ sticking to a small number of brands - Confident and happy in their own skin, doesn’t feel the need to they are familiar with and which share their personal values. conform to a certain group or stereotype in order to appear ‘cool’ Percieved Functionality, versatility, style and comfort are all considered when selecting products to purchase, as opposed to ‘newness’ (Runyan, R.2013). benefits (Runyan, R.2013). They have incredibly high expectations of service (Ma, Y and Niehm, L, 2006). Tables 12-14: Based on Customer Characteristics table and Product related approaches table, (Wood,M.2013)

47 Core Consumer Mood Board Consumer

Intelligent, creative. confident, adventurous, interested in art, and music, young, free spirited, health conscious well-travelled, ambitious, optimistic, sporty, successful, curious, sophisticated. brave, appreciates quality, desires to be cultured, free spirited...

The new core- consumer mood board

48 BRAND RE-POSITIONING

The Fitch Value Proposition (Chernev, 2012)

With reference to Keller, K et al . (2012:p750) ‘repositioning a brand requires establishing more compelling points of difference’. This is imperative for the company to address in order to improve desirability, which, as highlighted on the brand positioning map in the audit, is currently fairly weak compared to its competitors.

Fitch will achieve differentiation, by bringing high quality, technical outdoor-heritage apparel to the fast-fashion dominated market and through the introduction of the innovative new store concept. This will provide the customer with added value by addressing the increasing demand for functional yet stylish apparel, and by effectively addressing the blurring of the lines between the physical and digital worlds (Bate, M, 2014).

What’s more, by maximising charitable efforts (such as increased involvement with the Earth Watch institute), the brand will convey a more philanthropic brand image and will employ attributes such as ‘wanderlust worthy’ campaign imagery, exclusive magazine collaborations and unique in-store experiences to provide a more aspirational, cultural and community-based brand experience. This aims to correspond with the core consumers values and traits, thus helping to achieve the brand loyalty objectives.

Repositioning

As a result of this repositioning and the diversification of the brand’s portfolio (detailed later in the report), Fitch will need to consider a broader range of competing retailers. With reference to Porter’s Five Forces, this will include the ‘threat of substitutes in the market’ such as functional outdoor brands North Face in addition to premium American heritage brands such as Tommy Hilfiger. The brand must also remain mindful of substitutes such as fast-fashion retailer Zara, who also appeal to the same targeted demographic. ‘Newer entrants on the market’ must also be considered such as UK outdoor heritage brand Barbour who have an increasing presence within the US market.

Fig 66: Own Image

49 Estimating Competition: The positioning map illustrates the brand’s predicted new position amongst its competitors in terms of their price and desirability following the implementation of the new strategies. High Price

Ralph Lauren

Barbour Hunter Woolrich Tommy Hilfiger Black Diamond Fitch Levi’s Patagonia J Crew Free People North Face Without Walls (for Urban Outfitters) Poler Stuff Timberland Banana Republic

Jack Wills Gap Desirable/aspirational Undesirable ASOS Topshop Urban Outfitters Hollister Uniqlo ASOS Zara American Apparel H&M Forever 21 New Look American Eagle Aeropostle Primark

Key:

Heritage competitors Outdoor brand competitors Fitch Indirect mass market competitors Low Price

50 The new brand onion model (Posner, H.2011) highlights Fitch’s key values and personality which will be conveyed to the consumer following the rebranding process.

ion act in Involvment with charities nd ra and organisations such as B Earth Watch. Donate a percentage of profits to these charities. Brand Tag Line: Bring- The Fitch concept stores will focus sonality ing stories of adven- on the beauty of nature, the great Per and ture and discovery to outdoors, and the beauty of time and Br Non-discriminatory life things that really matter. Fun Approachable es Inclusive alu Provide stylish yet func- d V Relaxed an tional, high quality, logo- Br Actively encourage less premium products. and celebrate diver- They will offer comfort Provide a stimulating, Quality subtly, digitally innova- Essence sity (inclusive and ap- and versatility and are rand tive in store environ- B proachable) guaranteed to last. ment which entertains Friendly the consumer whilst Ethical Fitch is an authentic providing them with brand, rooted in the a cultural ‘communi- outdoors. It offers func- Strive to be as envi- Classic Employ, friendly and ap- ty-orientated’ lifestyle Have a sincere tionality forward think- ronmentally friendly and collabora- proachable sales assistants space to relax and rid ing design and timeless and ethical as pos- Authentic tive relation- sible who are knowledgeable and themselves of stress Americn style. ship with con- passionate about the brand. away from busy urban sumers. lifestyles. Confident

Sophisticated Free- Spirited Provide a creative, cultur- ‘Wanderlust-worthy’ campaign Boho al brand experience. imagery that aims to inspire Cool (not indimidate!) and visually stimulate the viewer, making Casual Fitch products will be ex- Liberating them feel like they can go any- clusively ‘Made in America’, Philanthropic where and achieve anything. using selected American Elegant vendors.

Use unique, environmentally Operate a seamless om- friendly packaging for all Fitch ni-channel business model. products, responding to the heightened environmental concerns of the modern consumer.

NEW BRAND IDENTITY

51 This adaptation of Aak- er’s brand identity model (1996) was used to further illustrate the brand’s evolved ethos and key Brand as a attributes to highlight the product Brand as an added value it will deliver to the customer. organisation authentic High quality authentic Eco-friendly reliable Stylish devoted (to the con- comfortable sumer/employees) functional Charitable fashionable Transparent Ethically manufactured in the USA Fitch

Brand as an Experience Brand as a person

relaxed adventurous Inclusive youthful homely Boho memorable free-spirited modern ambitious inspirational approachable Outdoorsy bold liberating Loyal community Orientated

52 FITCH MARKETING MIX

The following chapter will explore the brand’s evolved, more desirable marketing mix with particular focus on the place and promotional elements.

Fig 67: Own Image: Fitch Campaign imagery example

53 Fig 68: Visual Merchandising/store aesthetic inspiration

PLACE ‘the store is like a portal, a venue for communities of aficionados, where one experiences, gathers ideas and continues the conversation about the brand’ values’ (Saviolo, S and Marazza, A.2013:p75)

Fig 68 ‘the atmosphere of a store in which products are purchased and consumed could be even more important than the products themselves’ (Kim, J, 2012).

54 KEY STRATEGY- THE CONCEPT STORES

The audit highlighted how the physical store still plays an important role in the millennial consumers path to purchase (Harvard Business Review Staff (2011), and thus should not be neglected. However, with the emergence of multi-channel retailing, customer expectations of the store experience have been increased, meaning brands are now required to provide tempting incentives to entice customers into the store (Walker, D,2014). The following pages will illustrate the aesthetic and contents of the Fitch concept stores, which have been designed to visually stimulate the customer, whilst moving away from the company’s arguably overwhelming offering of the past (Hancock, J.2009).

Referring to the sentiment of Greenwood, G (1993) ‘The impact of such a radical change in store image on the culture of the organization should not be underestimated’, therefore the development of the new store concepts will mark the beginning of the transition from ‘Abercrombie and Fitch’ to ‘Fitch’.

Concept Store Objectives

- To achieve ‘design-led’ competitive advantage (Kent, T and Omar, O.2003)

- To reinforce the brand’s outdoor heritage.

- To create a place for consumers to escape/ retreat from the chaos of modern life, as part of a community.

-To convey the brand’s new desirable ethos.

Fig 69:

55 Fig 70: Selfridges No Noise room

FITCH CONCEPT STORE INTERIOR

With reference to Kim, J. (2012) ‘The influence of physical surroundings in retail stores is considered a very important issue for retailers in that retail environmental cues directly influence consumers’ experience and their purchases in Fig 71: Own Image: White Stuff stores’. In light of this, the new Fitch store concepts will provide customers with a ‘sensory-rich’ (the WGSN Forecast team, 2014) store environment which will function as ‘experience hubs’ (Walker, D, 2014). By addressing the millennial consumer’s digital fluency (Yarrow, K and O’Donnell, J.2009:p185), the brand will subtly incorporate digital technology such as interactive iPads and Instagram screens, amongst the new eclectic mix of desirable product, to ensure that a seamless multi-channel experience is provided.

Whilst Lynch, R.2012:p276) argues that ‘technology has come to play an important role in the development of sustainable competitive advantage’, as highlighted in the Elemental macro trend (see appendix 7), there is a rising desire for solace and retreat from the modern world, particularly as people are suspicious of certain aspects of technology – e.g. invasion of privacy. So, whilst technology will be an important element of the total sensory experience in store, the technology incorporated in Fitch stores will be uninstruc- tive and subtle.

In keeping with the brand’s outdoor roots, the nature inspired visual merchandising aims to capture the customer’s imagination and will be skilfully assembled in order to evoke a sense of the immense American countryside. The light and spacious design of the store takes inspiration from the Selfridges ‘no noise room’, as it will offer customers a place to relax and daydream, enabling them to escape from the chaos of modern urban life. The overall store experience will persuade customers to spend longer in store and to encourage purchasing (Humphris, I, 2014), whilst responding to the older millennial consumers desire to ‘maintain a sense of human interaction’ (Bate, M, 2014). Fig 72: Own image Fat Face What’s more, the distinctive look of the store will effectively convey the brand’s new, desirable ethos and will enable the brand to achieve ‘design-led competitive advantage’ (Kent, T and Omar, O,2003) whilst recapturing domestic interest.

Fig 71 and 72 (White Stuff and Fat Face store interior) demonstrate how retailers have incorporated outdoor influences within their stores to enhance the overall design and to reinforce the brand’s essence. Fig 73 displays the store interior of Shoreditch based Huntergather who have adopted a ‘back to basics’ store design, by creating a community-orientated stores complete with cafe and an exhibition space. The brand has acknowledged the millennial consumers desire for community, recognising its potential to result in a more loyal and committed customer base (Kotler and Keller (2012.p276) whilst avoiding the forceful selling tactics (Runyan, R. 2013). Fig 73: Own Image: HunterGather 56 THE STORE’S KEY DIFFERENTIATING FEATURES

Feature Description Interactive Responding to the premise that ‘organisations operating in the old model are dying faster and faster’ (Busi- Ipads ness of Fashion, 2013) and to further address the blurring of the lines between digital and physical retailing, small touch screens and iPad’s will be available around the Fitch stores. These will be available for customers to browse through the new collections and to explore the new in store only website (see following page). If the demand for Fitch product is high, a ‘click and collect’ service will be introduced in store a month after the official launch, (to USA locations only) to offer a more seamless and engaging buying approach (WGSN news, Fig 74: Cultural influence: Artist Piplotti Rist 2015). The website will also provide detailed information about the brand, including their ‘green’ marketing activities, their manufacturing process and their involvement with charities, in order to maximise consumer demand for transparency.

In line with a similar strategy used by UK retailer Monsoon, the iPad’s will be used by store employees to roam amongst customers to engage with them and complete transactions on the move. This will minimise the queueing at cash desks. Employees will also be able to swiftly order any unavailable stock into the store for ultimate flexibility and convenience and will be used to collect additional contacts for the mailing list. The incorporation of the iPad’s will ultimately improve purchasing efficiency, whilst providing the target consumer with the face- to- face contact and entertainment they desire (Bate, M, 2014). ‘Fitch Stories’ According to a retail industry outlook survey undertaken by KPMG (2013), 71% of US retailers identified Interactive Ins- social media to be the most significant technology trend influencing their business and highlights how these tagram Screen. platforms can be used to enhance the customer experience. With this in mind, each store will feature an interactive Instagram screen, which will play a key role within the store. The screen will enable customers to upload (Additional images of their most profound and special everyday moments, using the #fitchstories hashtag, which will then Fig 75: Own image screens will be streamed live to the screens for public viewing. Store mock up: Instagram screen and Ipads in store. also be positioned outside To encourage contributions during the brand build stage, fortnightly competitions will also be held, whereby the stores in customers will send in images of themselves wearing Fitch products and prizes (such as day trips and festival public areas, tickets) will be given for the most innovative posts. This live stream will also be featured as a scrolling window which will be in a section on the new Fitch website, which will be specifically dedicated to ‘Fitch Stories’ posts. detailed later Fitch on in the re- With reference to social media specialists Tint; ‘social media walls are an excellent way to get your audiences Stories port) talking and sharing’ (Koo, T, 2013), therefore the implementation of this feature is predicted to encourage sturdy C2C and B2C relationships by increasing interactivity whilst contributing to the brand’s seamless Tag your best photo with #fitchstories to multi-channel strategy. What’s more, due to this consumer groups averseness to ‘advertising clutter’ (Lazarev- share a moment with people around the ic,V (2012:p50), this feature will avoid ‘aggressive marketing’ techniques. Instead, it will encourage the brand world! participation which they desire, enabling them to interact with the brand and the new products ‘outside the purchasing mind-set’. According to Yarrow, K and O’Donnell, J (2009:p117), retailers encouraging this kind of interactivity are likely to ‘enjoy long-term benefits’. Moving Light Moving light projections, inspired by the work of Pipilotti Rist (see appendix 7 and fig 74) will also feature Projections in store which will project visual, moving narratives, set in the stunning American countryside. They will also convey the brand’s new ethos by illustrating the Fitch brand from concept to end product, further supporting their more transparent brand image. The brand’s latest promotional videos (detailed later on), will also be projected, to ensure a consistent and potent brand message is exhibited across all customer touch points. This differentiating attribute will enhance the overall ambience by visually stimulating the consumer and providing @Josie: ‘There are There are many them with an incentive to stay in store longer. places to explore in New Zealand. All Table 15: The Fitch concept store’s key differentiating features of which are beautiful and should be embraced’ This was my favourite place in Queen- stown #fitchstories

57 The Fitch Stories Instagram screen The image below shows a mock-up of the women’s wear section of Fitch e-commerce site (to be trailed on the iPads in the concept stores only). This site will go live internationally the following year if the Fitch concept proves profitable.

Fitch

WOMENSWEAR MENSWEAR LOOKBOOK ABOUT FITCH STORIES

Fitch Woman at Sea mountain Fitch Woman fitch woman at home Fitch Woman of the land

FitchFITCH favourites... FAVOURITES...

58 A LOOK AROUND THE STORE

Fig 76: Sketch Up design: Hypothetical example of the Fitch concept store layout

59 Designed in the style of a LED lighting and heating Adhering to the consumer demand for art and culture (Saunter, L. (2014), the Fitch stores wood cabin, to emphasise will be installed to mini- will feature the work of the photographers for Folk magazine (see later on for further detail) Relaxing seating areas a more ‘back to basics’, mise the energy consump- which will feature in store and throughout the introductory campaign (images of the impres- Camping/outdoor inspired for customers to sit, camping inspired aesthetic. tion. sive American countryside). This aims to reinforce the outdoor heritage theme whilst driving visual merchandising to relax and soak up the footfall. correspond with the atmosphere of the store. brands essence.

The iconic Moose head will continue to feature within the store, to further reinforce the reconnection with the brand’s roots.

‘the moose and seagull logos are an essential Moving element of our light strategy’ (Ab- projections ercrombie and inspired Fitch Co, 2014). by Pipilotti Rist.

Folk Magazines featured in various places around the store (see later on in the report for further detail)

Ambience: ‘Fitch Stories’ Interactive Instagram Clearly illuminated Screen. Lighting: The retail space will therefore be low display tables to well-lit to enhance the atmosphere, and Interactive In-store ipads draw attention to to clearly illuminate the merchandise. key products and to effectively break up Adhering to recent global visual See appendix 8 for floor plan Music: Ensuring to provide the customer the floor space. merchandising reports by WGSN with a multi-sensory experience, music (2014), the flooring and walls will be will play a key role in enhancing the made from hard wood which will store’s ambience. Abandoning the argua- contribute to the outdoor heritage bly overwhelming nightclub music which theme. The natural imperfections in pervaded the store in the past, the stores the wood will be left to evoke a more The stores visual merchandising will encompass a calming yet uplifting rustic, authentic aesthetic, as stated and product displays will be compilation of up-to-date indie, folk and by Musher, L (2010:p57), this can ‘add minmalistically arranged, avoiding alternative music such as Mumford and character to the space’. the overcrowding of product to Sons and Alt-J to reflect the brands new prevent the customer from feel- free-spirited personality. ing overwhelmed or confused.

Single clothing display rails will be used to effectively exhibit the new ranges. Hypothetical example of the Fitch concept store layout

60 LOCATION

With reference to Kent, T and Omar, O (2003:p210); ‘store location is one of the most important determinants of retail success’ , therefore it is crucial to strategically implement the new brand portfolio within locations most likely to have maximum impact and exposure.

The company will minimise costs by implementing the concepts within a number of their existing stores, and will observe Christaller’s Central Place theory (1966) by using busy urban locations across America to heighten prospects of achieving high footfall. This strategy will help to achieve the brand awareness objectives and will ideally accelerate the spread of positive word of mouth. Fitch Fitch Commencing with the vast New York flagship to generate New York a ‘buzz’, the store will be implemented within 3 ‘satellite San Fransisco stores’ (Hines and Bruce, 2007) in California (San Francisco and Santa Monica), and Georgia. The contrasting locations will enable the brand to achieve a more accurate idea of the ‘general consensus’ of opinion. Fitch Fitch However, due to America’s vast geographical size, as stated Santa Monica by Kent, T and Omar, O (2003:p126), it can ‘more usually be Georgia considered as a number of separate consumer markets’. There- fore, the brand must avoid ‘standardised marketing’ (Keller, K et al (2012:p785) by tailoring the marketing mix appropriately to each location.

(see appendix 3 for site selection rationale)

See appendix 8 for floor plan

61 FITCH PRODUCT

As previously stated, whilst product development is one of the most important components of the brands reinvention, the following chapter will simply provide insight into the design direction and content off the new Fitch product ranges, which will exclusively distributed to the concept stores.

Outdoor heritage: ‘While part of the market focuses on new technology, the other looks to escape today's fast-paced lifestyle in favour of a simpler time. Traditional handcrafted constructions, fabrics produced in heritage mills and low-tech functionality are indicative of the desire to connect with nature without technology. Camping, hiking and non-competitive outdoor activities drive this market’s product offer, resonating with the consumer’s appreciation of nature and community’ WGSN - (Sturch, K. 2014).

62 Product objectives:

- To provide a desirable, outdoor inspired THE ‘FITCH FIELD’ product portfolio, reconnecting with the brand’s original outdoor roots whilst adhering to the growth in the outdoor COLLECTION apparel market (functional yet fashionable clothing (WGSN Trend Watch (2014).

‘Go back to your roots and what you were once renowned - Achieve substantial competitive advan- for selling. Through clever retail design, these products can be tage and differentiation by offering the pushed to the fore and celebrated’ (Reyner, M and Ellerby, J. durability and functionality of the outdoor ‘Brands can be successfully brands (such as The North Face and Pa- (2010). revamped by adapting current tagonia) whilst offering the style/fashion- styles while celebrating its histo- ability and authenticity of heritage brands such as Burberry. The initial Fitch collection (to be exclusively distributed to the ry. “Burberry is about heritage, concept stores) will be branded ‘Fitch Field’ and will consist of men’s but about making that heritage - Use high levels of craftsmanship and wear, women’s wear and bags. These ranges will celebrate the brand’s relevant for today,” said Bailey enhanced textile technologies to make ‘under-marketed’ outdoor heritage by offering a more contemporary Fitch’s ‘Made in America’ products (using twist on its original outdoor wear products. In so doing, Fitch will in 2009. “You have to make selected vendors in America), which will achieve differentiation by offering timeless, authentic merchandise, sure what you do is right for justify the brand’s premium price points responding to the target market’s desire for ‘quality over quantity’ the moment you live in’ and exceed customer expectations. (Walker, D, 2014). Aquino, J (2011). -To contribute to the effort of bringing Additionally, due to advances in textile technologies, customers have high quality, technical yet stylish outdoor increasing product performance expectations, therefore, in order to apparel to the ever-changing fashion meet the growing demand for ‘functionality over fashion’ (Armstrong, market. S. 2014), Fitch products will combine material innovation with heritage construction, to ensure maximum durability and comfort and to - To help achieve the overall objective to support the target consumer’s interest in outdoor pursuits and their be perceived as a desirable lifestyle brand. busy lifestyles.

Moreover, in keeping with the natural and ‘outdoorsy’ brand attrib- Fig 78 utes, a portion of each of the product ranges will be made from 100% organic cotton, to enhance the company’s image as being corporately socially responsible. This will also meet the demand for environmentally friendly products (see PESTLE) and thus offer customers greater PRICE ‘added value’. As highlighted in the audit, frequent discount- Whilst a small selection of seasonal, ‘on-trend’ product will be availa- ing and cost cutting (to match competitors) ble within the ranges (in order to appeal to the ‘early adopters’), the has proven detrimental for the brand (Berman, brand will adhere to a similar strategy to Burberry, whereby it will J. 2014). Fitch will therefore employ a ‘value predominantly consist of ‘continuity products’ which can be repeated added’ pricing strategy (Kotler, P, 2012:p315) year after year. This aims to minimise exposure to shifts in consumer using the aforementioned superior crafts- preferences and emerging fashion trends (Moore, C and Birtwistle G, manship, made in America manufacturing and (2004), whilst achieving differentiation amongst the short product life advanced textile technologies to reduce the cycles of the brand’s ‘fast fashion’ rivals and reinforcing its position as a price elasticity and to justify the brand’s origi- lifestyle brand. nal premium price points.

(see page 66 for price architecture and ‘Fitch Field’ range plan sample) (see page 90 for product risks)

Fig 77 63 The like-for-like product comparison below compares a selection of coats belonging to Fitch’s key competitors including leader outdoor retailers and American heritage brands. This investigation has enabled the brand to determine how to create superior value in order to stand out in the market place.

Barbour Ralph Lauren Tommy Hilfiger North Face Patagonia International Original ‘Nano-Air™ Bi-Swing breaker

Brand ‘Felix Jacket’ ‘Men’s Quest Waxed Jacket Jacket’ Jacket’

$486 $148 $269 $216 $372 Price

Lightweight with en- Made from in a heavyweight Sylkoil Hooded and waterproof, Insulated, stretchy and Material: hanced mobility (water waxed cotton, has a matte finish with a soft, comfortable breathable fabric. Nylon repellent and soft) and is lined with corduroy for feel. Classic, tai- insluation. lored style. Added Value Added

Table 16: Like-for-like comparison

64 The Fitch Core product (shown below), will be a modernised version of their original outerwear jacket. This will feature in the brand’s new campaigns and will be emphasised in store and on the website.

Fig 79 Fig 80

Images of the original Abercrombie and Fitch collections (inspiration for the Fitch Field ranges).

CORE PRODUCT Potential product Actual/Expected Attributes The Iconic Fitch Heritage Huntsman Jacket -Alternative colours - Made from High quality fabrics - Enhanced technologies features (sim- Contemporary Heritage functional clothing -Tailored at the waist to offer a flattering ilar to Tommy Hilfiger’s novelty solar and on-trend fit, powered jacket) -Modernised version of a classic/heritage - Additional embellishments product. - Additional Seasonal versions (new - Offers a sense of investment (superior on-trend prints, fabrics) quality of materials and craftmanship) - Premium price point - Product lifecycle: ‘long term fashion (icon)’ (Jackson and Total/Augmented Benefits Shaw, 2009) - Timeless stylish garment (continuity product) - Premium product with a luxurious look and feel - Stylish yet practical and functional - Made in America - Waxy look and feel, without the heaviness -Durable, waterproof and highly breathable fabrics. - 100% organic cotton lining - Iconic piece of the Fitch brand

65 FITCH MEN’S WEAR RANGE SAMPLE A/W 16

Fitch Safari Jacket $107

Fitch organic cotton Tee The Iconic Fitch Heritage $47 Huntsman Jacket $321 Fitch Cargo pants (Low Priced Fitch Cargo utility $77 Product) jacket (Top Price Product) (Mid-Priced $185 Product)

Fitch

Fitch Camper Rucksack The Fitch Lumberjack shirt $44 $84 (identified as a key trend for AW16) Fitch Lamb’s wool Crewneck Fitch, high-stretch, ‘dense twill constructions and a pilled finish $56 breathable Tapered enhance tactility’ (Hendry, V. 2015). Fitch organic cotton Denim Jeans Shirt $102 $86

Concept Sample Collection adapted from WGSN’s AW16 flats See appendix 7c for Micro trend design direction for first Fitch Field range. 66 Example Top line merchandising plan (Men’s Wear to feature in the New York store)

Name of range: Fitch Field ‘Men’s Styles % Mix Colours Total SKUs % Mix Price Range wear’ per style (stock keeping units) Coats and Jackets 4 19.05% 1 4 19.05% $147-$319

Organic cotton Tees 3 14.29% 1 3 14.29% $47-59

Shirts 14.29% 14.29% $84-90

Plain: 2 1 2

Printed (lumber jack): 1 1 1

Total Shirts: 3 3 Sweaters 2 9.52% 1 2 9.52% $56-60 Trousers: 3 14.29% 1 3 14.29% $69-77 Jeans 2 9.52% 1 2 9.52% $95-102

Bags 4 19.05% 1 4 19.05% $44- $48 Total ‘Fitch Field’ men’s wear 100% 100% Table 18: Top line merchandising plan. With regards to the width and depth of the product range, Fitch concept stores will feature a fairly ‘narrow and shallow’ selection (Jackson and Shaw, 2009) to avoid making a loss if proven less popular than expected. If the Fitch Field ranges meet target sales, the selection will be widened and diversified following the launch, in order to attract a broader customer base.

As stated in the previous chapter, due to the sharp contrasts in climate and consumer purchasing behaviour across the various American states, it is crucial that the product selection is adapted appropriately to each location. Therefore the products to be featured in the New York concept store, for example, (shown in the top line merchandising plan above), will comprise of garments with thicker fabrics, and will feature a slightly higher portion of outerwear, compared to selection featured in the Santa Monica store.

Fig 81

67 PROMOTIONAL STRATEGY

In order to ensure that the revitalisation process is successful, widespread awareness of the new store concepts and brand ethos is crucial (Keller, K et al. 2008). As promotion is the most visible (and arguably most persuasive) element of the marketing mix (Chernev, 2012), this will be achieved through the development and execution of a compelling integrated marketing communications strategy, which aims to convey the brand’s evolved, more approachable and good-natured personality.

Each promotional activity aims to correlate with the target consumers core values and traits, such as their optimistic and free spirited nature in order to build sturdy B2C relationships (Bedat, M and Darabi, S. 2014). These measures will include celebrity endorsement, exclusive launch event parties, guerrilla marketing, digital media marketing and an exclusive collaboration with Folk Magazine.

Whilst the transition from Abercrombie and Fitch to ‘Fitch’ may cause confusion amongst new and existing customers, the brand aims to exhibit a high level of consistency across all traditional and untraditional channels in order to convey an authentic brand message and to maximise chances of securing the target consumer’s trust (Laza- revic,V, 2012). The aim is to generate positive word of mouth, thus enabling the brand to overcome past ‘negative equity’ (Andrews, M and Kim, D, 2007:p358)

WHERE IT ALL BEGINS...

68 PROMOTIONAL VIDEO

Creating a ‘buzz’ (Wood, M.2013)

As highlighted in the audit, online video has become one of the most effective promotional tactics in terms of reaching the millennial consumer (Trimble, C. 2014). The brand will respond to this by creating a video as part of the introductory campaign, designed as a vehicle to launch the Fitch concept into the US market.

Taking inspiration from the brand’s outdoor, heritage roots and the Elemental macro trend (see appendix 7a), the initial video will be road-trip themed. It will be set in various locations across the vast American countryside and sprawling national parks, shot on a vintage style camera, to induce a classic Americana feel. The enormities of these awe-inspiring locations aim to scintillate the viewer’s senses and will capture the imagination of the ‘nomadic’ millennial consumer (WGSN Think Tank, 2014- see appendix 7b). Tapping into the desire for a narrative (Firth, P and Buchanan, V. (2014), it aims to tell an honest brand story, whilst evoking a sense of possibility and optimism to appeal to the target consumers spirit for adventure and thus helping to create an aspirational brand image. The uniqueness and charm of the video will cut through the immense amount of ‘clutter’ (Jackson and Shaw, 2009:p157), which will help to accomplish the customer acquisition objectives.

Following the initial introduction of Fitch to the market, the brand will release a series of additional outdoor-inspired videos on a fortnightly basis in order to continue building the brand narrative and forge an authentic brand image (Aldenton, S. 2014).

While the promotional video will increase brand awareness to some degree, it must be acknowledged that this method of communication may only reach a limited number of potential customers. Therefore it is essential to exploit alternative methods of communication in order to attract the target market and other demographics which may hold profit potential. These are detailed later on in the report.

(Please refer to page 90 for potential risks) Where will this feature?

-On the brands You-tube channel

-In store for the customers entertainment (light projection on walls and i-pads).

-Across all social media platforms.

- On the existing Abercrombie and Fitch website.

- In existing store windows. WHERE IT ALL BEGINS... Fig 82 69 ‘THE JOURNEY’ PROMOTIONAL VIDEO

The first in the series of videos to be released will be entitled ‘The Journey’. It will feature the new brand ambassador Leah Jenner (detailed later on in the report) plus a mixture of male and female Fitch brand representative models who the target market will be able to identify with. They will be seen driving down long, sun-drenched American highways, hiking across vast mountain scenes, exploring stunning woodland scenery and strolling/cycling down idyllic sandy beaches. Accompanied by an exhilarating and uplifting soundtrack, the film will encompass a sense of fun, humour and adventure, which will reflect the brand’s personality whilst subtly promoting the new ‘Fitch Field’ range.

Fitch Promotional video storyboard: Mixture of primary and secondary images. 70 ‘Capture the imagination of armchair adventurists with interactive video and in-depth imagery that tells an honest story and overwhelms the senses’ (Szymanska, A (2014)

Introducing...

Fitch

Bringing stories of adventure and discovery to life

71 The image below shows the Abercrombie and Fitch You-tube channel where all of the upcoming full-length Fitch promotional videos will be published. A cut-down version of the promotional video will also be used as a YouTube advert, in advance of other films identified by data analytics as appealing to the target audience.

#introducingfitch Changes are occuring in the world of Abercrombie and Fitch. Meet our new and improved identity ‘Fitch’

Fitch Take a leap of faith with ‘The Journey’. Fitch’s first short film Bringing stories of encompassing a sense of fun and adventure and adventure. discovery to life Promotional Video Promotional

72 Promotional Video

Coming soon... Fitch Bringing stories of adventure and discovery to life

Images from the new campaign will also feature on large billboards on exterior of each of the new concept stores to maximise exposure (see New York Flagship below).

Mesher, L (2010), highlights the impact of a shop front in terms of providing insight into the essence of the store’s interior. Consequently, the new promotional video will be exhibited on digital screens in store windows, to convey the brand’s evolving essence, to heighten suspense and to effectively communicate the introduction of Fitch to passers by. Coming soon... Fitch

Bringing stories of adventure and discovery to life

73 Fig 83: Leah Jenner

CELEBRITY ENDORSEMENT

‘Celebrities are used to make marketing tactics more convincing and help to make marketing communications more effective’ (Lazarevic,V (2012:p53)

In order to maximise publicity of the rebranding efforts, Fitch has selected American singer and actress Leah Jenner to be the brand ambassador (Posner, H.2011). As the sister Where will she feature? in law to Kylie and Kendell Jenner, Leah is now a recurring cast member of the internationally viewed ‘Keeping up with - In the pre-launch promotional video Fig 84: Leah Jenner Kardashians’ series, which, according to statistics by Nielson (cited by Casserly, M, 2012) averages over 3 million viewers - Leah will be invited to perform and attend per episode. What’s more, her following of over 1.1million the San Fransisco and LA stores followers on Instagram, (where she will be asked to endorse a small selection of Fitch’s new products) signifies the potential for the collaboration to maximise reach, and broaden the - On the new website customer base. - Collaborating with the brand to release a With reference to Kotler, P (2012:p267), ‘companies must be new line. careful when selecting celebrities to represent their brands. Picking the wrong spokesperson can result in embarrassment and a tarnished image’. However, it is evident that Leah’s ‘aspirational yet accessible’ personality will have synergy with the brand’s new essence (Stoppard, L.2015) and has the potential to improve the brand’s image. She is therefore an ideal celebrity to engage the target market, who are considerably influenced by ‘celebrity culture’ (Runyan, R,2013). This has proven a profitable strategy for competitors such as Tommy Hilfiger, whose collaborations with Alexa Chung, Kendall Jenner and Zoey Deshanel attracted a new type of consumer - resulting in an overall sales boost (Euromonitor, 2014).

Fig 85: Leah Jenner Capitalising on the fact that ‘influence sells’ (Stoppard, L .2015), the actress will also endorse and promote a line of apparel to be released alongside the store launch. This signing is predicted to be a profitable strategic move that will enable the brand to further boost sales and awareness, and ultimately achieve customer acquisition and loyalty objectives.

74 CONCEPT STORE LAUNCH EVENT PARTIES

Fig 86: Leah Jenner Singing

What and In order to maximise publicity of the rebranding efforts, invite-only exclusive launch parties where? will take place two days prior to the official public launch of each store. This ‘PR mechanism’ (Manlow, V.2013), will take place within the four new concept stores, over a period of 3 weeks, commencing in the New York flagship.

Fig 84: Leah Jenner At each store launch event, there will be a catwalk show to showcase the brand’s initial ‘Fitch Field’ collection which will be presented to guests within a new Fitch look book and a free Fitch t-shirt to take away (see page 77 for examples). Guests will also be entertained with a different musician depending on location and will be provided with a selection of canapés and refreshments throughout.

The purpose of this promotional activity is to build and showcase the brand’s new identity, which will ideally create a buzz prior to the public launches, whilst effectively positioning the brand within the market (Manlow, V.2013). Who? A number of influential celebrities and bloggers will be invited to the launch event with some incentives (such as free Fitch merchandise) to entice them into coming. This will Press, Ce- include high profile guests such as Jennifer Lawrence, and Ryan Reynolds who will be invited lebrities and to the launch in New York as well as Taylor Swift for the Georgia store launch and brand Bloggers ambassador Leah Jenner, who will perform at the two Californian events. Abnett, K (2015) notes the significant influence of bloggers and celebrities, in terms of dictating ‘what’s ‘in’ and ‘out’ of fashion’, therefore, in view of the TEARS model (Shimp, T, 2010:p254) the presence of these guests will entice a broad audience and to help to create a desirable brand image.

Furthermore, with reference to Hines and Bruce (2007:p283) ‘the creation and nurturing of positive relationships with the fashion press is critical’, therefore an assortment of influential press will also be contacted prior to the launch in order to maximise exposure. This will include bestselling American newspapers such as the New York Times, USA Today, The LA Times, The New York Post, The Washington Post and The Chicago Tribune. Fashion magazines will also be contacted, including Dazed and Confused, Cosmopolitan, Vogue, GQ, Elle, ID, Company and Stylist. All of the targeted press listed above will be provided with a Fitch press pack including a press release (see appendix 15), a free sample of a Fitch t-shirt and the Fitch look book. Detailed information on the new brand concept and the involvement with the Earth Watch charity will also be included, in order to create a positive impression of the brand, and thus increasing likelihoods of positive coverage following the event.

In order to promote awareness internationally and to instigate B2B relationships, a press release will also be sent to newspapers and trade publications overseas locations (such as the UK’s Retail Week and Drapers). Social Media The brand’s existing social media platforms will be used prior to and during the launch (see later on events with the hashtag #introducingfitch. The various platforms will provide the customer for further de- with a real-time commentary of what’s going at the event in order to generate a sense of tails on social intrigue and excitement. Celebrity guests will be also asked to Tweet and post images of the media promo- event to their Instagram profiles and will be encouraged to post photos to the interactive Fig 87: Mock-up visualisation of store launch event tion) Instagram screen. Table 19: Launch event information. 75 Fig 88: Own Image YOU’RE INVITED!

Fitch USA

(Formally known as Abercrombie and Fitch)

Fitch invites you to attend an exciting launch event of our new San Francisco store concept, to celebrate the transformation of Abercrombie and Fitch. Fol- lowing an exclusive preview of the new A/W 16 collection, prepare to be entertained with champagne, food and live music from the lovely Leah Jenner.

August 20th 2016

Westfield San Francisco Centre 865 Market St San Francisco, CA 94103

In partnership with Earth Watch and Folk Lifestyle Magazine

Above is an example of an invite to the one of the Fitch concept store launch event parties, which incorporates one of the images from the new Fitch campaign. The invite will display the involvement with Folk Lifestyle magazine (see later on for details) and the Earth Watch charity, in order to create positive associations and to reinforce the brand’s evolved values. 76 FITCH LOOK BOOK The Fitch look book will be provided at the event and on the public store launch days. This will feature key products and imagery from the latest Fitch campaign.

Fitch

Ladies Fitch Field Jacket Tailored fit $235

The Iconic Fitch Heritage Huntsman Jacket Fig 89:Own Image $321

Fitch Breathable tapered jeans $77

Fitch Look Book

Fitch

Bringing stories of adventure and discovery to life Fitch

Bringing stories of adventure and discovery to life

Fig 89a:Own Image Fig 89b:Own Image The image above displays an example of a Fitch Field T-shirt which will be The Fitch Campaign imagery (see examples above) will feature in the Fitch Look Book, across all digital media platforms, in store and in any publicity relating to the brand.In com- provided within the press pack and for all of the guests attending the launch parison to the seemingly unappealing images which have been used in the past by Abercrombie and Fitch and which the target consumer does not relate to, similarly to the new event. The t-shirt will be enclosed in Fitch’s uniquely designed, environmental- promotional video, all Fitch images will feature ‘real people’ who reflect the realistic aspirations of the new core consumer. The campaign imagery will also include humour and ly friendly packaging, which, according to statistics gathered by LS:N Global, idyllic scenery to convey a more approachable and desirable impression of the brand. is regarded by 80% of the 18–30 age segment, as an important factor when making purchasing decisions (Jordan, A, 2015). 77 GUERRILLA MARKETING Fitch Stories

INSTAGRAM SCREENS Tag your best photo with #fitchstories to share a moment with people around the world!

Identical to the in-store interactive Instagram screens (see page 57), the company will invest in eight additional screens which will be positioned in busy areas in the cities where the new store concepts will be locat- Fig 91: Instagram Screen ed. The content of the Instagram feed will be displayed Fitch on both the store and street screens, and will stream a Stories selection of customer contributions interspersed with Fitch product placement advertising. ‘We have to create experiences that perhaps are only had by few but are Tag your best photo with #fitchstories to share a moment with As stated by Jackson and Shaw (2009:p172), this compelling enough to fuel conversations people around the world! method of outdoor promotion is an increasingly ‘useful with many’ way of connecting and advertising to youth markets’. It (Coca Cola CMO- cited by Kotler, has been successfully employed by brand’s such as P.2012:p475) Coca Cola, whose ‘Hug me’ and ‘Small world’ guerrilla marketing campaigns encouraged customers in different international locations to interact with each Fig 93: Coke: Hug Me other and the brand (see fig 92 and 93), creating ‘112 Campaign million impressions in only a week’s time’ (cited by Kotler, P.2012:p475).

Therefore, despite the infancy of the Fitch concept, the Fitch Stories screens will potentially generate similar levels of C2C interaction. This will ideally capture the attention of both the target and broader markets to create a buzz before and after the launch and to help achieve the brand awareness objectives. Fig 92: Coke ‘Small World Campaign

Fig 90: Instagram Screen 78 DIGITAL MEDIA Abercrombie and Fitch’s existing digital platforms will be utilised extensively throughout the launch of the concept stores and during the brand building stages of Fitch. They will provide existing and potential customers with a commentary of news including behind the scenes imagery, details of the new brand concept and information regarding the ‘Fitch Stories’ guerrilla marketing locations. The platforms will primarily be used to generate a sense of excitement and to maximise transparency, thus avoiding confusion during the introduction of Fitch, #introducingfitch so that consumers are fully aware of the changes being made. As evidenced by digitally innovative competitors such as -Tommy Hilfiger, this has been recognised as one of the most effective ways to reach the digitally attuned millennial consumer (Yarrow, K and O’Donnell, J,2009).

Channel How the digital plaforms be used during the introduction of Fitch

Social Media A social media strategy is central to modern retailers’ e-business strategy (Chaffey, D, 2012), so the various social media platforms will continue to play a key role in customer engagement. Facebook and Instagram will be used to Bringing stories of adventure and - All social media frequently post the brand’s new ‘wanderlust-worthy’ imagery and will incorporate enticing clips from the intro- discovery to life platforms will be ductory video campaign, acting on the consumer’s ‘appetite for short bursts of video’ (Spybey, K.2015). These updated around 5 platforms will contribute to the development of a Fitch brand community, whilst helping to build interest and times a day with confidence in the brand. The Twitter platform will be used for posting regular updates on the brand’s activities. ‘Introducting Fitch’ related posts (see All social media posts will be consistently accompanied by the hashtag #introducingfitch, which will instigate page 81). customer participation and C2C conversation (Chaffey, D.2012), so helping to achieve the brand awareness objectives. The original Abercrombie and Fitch social media presence will be retained during the transition period in order to maintain engagement of existing loyal customers. These platforms will not be fully rebranded as ‘Fitch’ until it has been confirmed that the concept has proven successful.

During the brand building stages, each of the ‘Fitch’ related posts featured on the various platforms will incorporate incentives such as promotional giveaways, such as ‘win a holiday’ competitions to entice the free-spirited target market.

One of the disadvantages of social media is the lack of control a company has over the customer’s posts, meaning that if the introduction of Fitch is badly received, any negative feedback posted will be public. Therefore all platforms will also be used to respond rapidly to customer feedback, aiming to minimise the spread of negative word of mouth. Direct Mail Despite the risks of direct mail (as highlighted in the audit), evidence suggests that this type of ‘one-to-one marketing’ (Keller, K et al. 2012) is a cost effective way of targeting and instigating long term relationships. Staff will be asked to actively request and collect email addresses of all customers entering existing Abercrombie and Fitch Fig 94 stores. The company will then utilise the newly collected contacts and the extensive 100,000 email contacts on the existing database to notify them about the launch of store concepts and the rebranding process. Each contact will also receive a personalised invite to the public store launches to establish a connection with the brand (to make them feel special) and to encourage attendance.

Similar to the social media platforms, each email will incorporate eye-catching imagery and will be designed so that it is coherent with the brands new identity. Emails will also incorporate enticing incentives (such as festival ticket giveaways) in order to command their attention and provide the recipient with the aforementioned WIFM (What’s in it for me) factor (Chaffey, D.2012). Online advertising With reference to an article on the Business of Fashion (2013), ‘online advertising can help drive sales, especially to (see fig 96). your own e-commerce site, and can be targeted and measured much more effectively than print ads’ (BOF Team. (2013). This is reinforced by Chaffey, D (2012:p523) who maintains that they can help to enhance brand awareness and achieve brand interactions. However, he also highlights that they can be perceived as intrusive, therefore the online promotion of Fitch will be subtle, yet eye-catching, using the brand’s breath-taking, nature-inspired campaign imagery. The brand will also employ analytics to identify appropriate websites to be featured which will ensure the correct demographic is targeted and thus strengthening the effectiveness of the concentrated marketing strategy. You-tube Given the targeting effectiveness of online video (Trimble, C. 2014), You-tube will also play a key role in promoting the new store concept and brand portfolio following the launch. In addition to showcasing the series of promoto- nial videos (as previously discussed), the channel will also feature behind the scenes footage of the brand (including the manufacturing process and the new store concepts), adhering to the millennial consumers demand for transparency (Bedat, M and Darabi, S. 2014). Table 20: Digital marketing activities. 79 As stated by Kent, T and Omar, O (2003:p505), a website can ‘play a cost effective role in the communication mix’. Hence, the company’s existing website will also be used for promotion, prior to and post launch of the new concept stores and, (if received well) will be used to effectively notify existing customers of the gradual transition from ‘Abercrombie and Fitch’ to ‘Fitch’. The homepage (see below) will showcase the new promotional video and will feature a live countdown prior to the official public launch of each store, with the hope of generating a sense of enthusiasm and an- ticipation for the upcoming event. Following the launch there will also be a section on the site specifically dedicated to the new Fitch products, where customers will be able to browse through the Fitch Field collections and select items to put in a ‘wish list’ (see following page). This will enable the company to assess which products are likely to be the most popular before they are available for online purchase later on in the year. However, as previously stated, the risks of losing loyal existing customers must be acknowledged during this critical transition period (Munthree, S and Bick, G. 2006) and therefore the remainder of the site will continue as normal. This is separate from the Fitch website (see page 58) which will be trialled in-store only at this stage. Sales will be distributed through existing channels when Fitch products are available for purchase later in the year.

MENS WOMENS JEANS Fitch Browse the exclusive new Fitch collections!

Introducing... Fitch

Bringing stories of adventure and discovery to life

16 days Website and Fitch Abercrombie Till the New York Fitch store 80 official launch! Online advertising Fig 96: own Image Existing A&F Twitter

Digital media objectives

- To enhance B2C and C2C relationships.

-To generate positive word of mouth and Introducing... #introducingfitch hinder negative word of mouth. Click the link below for a sneak preview of the stunning new Fitch campaign. - To boost awareness of the new store con- Introducing... cepts and rebranding efforts. Fitch

-To help achieve the customer acquisition Fitch objectives. Bringing stories of adventure and discovery to life - To encourage and acquire valuable customer feedback.

Existing A&F Facebook

Fitch Lamb’s wool Crewneck $56

Something new is coming! Check out the new Fitch pro- Add to wishlist motional video below and the awesome new collecion!

Introducing... Bringing stories of adventure and Fitch discovery to life Bringing stories of adventure and discovery to life Bringing stories of adventure and discovery to life

The Fitch introductory promotional video and campaign imagery will feature recurrent- ly on the brand’s existing Facebook wall enabling consumers to discover and engage with the evolved brand (Jordan, A,2015). 81 ‘A group of millennials exploring the modern maker movement across the globe’ FOLK LIFESTYLE Folk Lifestyle MAGAZINE Fig 97: Fitch Magazines in store COLLABORATION With reference to an article in the Business of Fashion (2013) ‘The most successful fashion brands will embrace a blend of both traditional and new media to communicate a consistent and authentic message’. Consequently Fitch will exploit new communication channels via collaboration with Folk Magazine, who have a strong international following particularly amongst the millennial generation, across their various social media platforms, as well as a high number of subscribers to their print magazine.

The collaboration will take place across all of Folk’s B2C touch points, in order to maximise exposure during the critical trial period of the new concept stores, with the goal of creating strong synergy with the Fitch brand and therefore achieving competitive advantage (Lynch, R.2012).

Fitch products will feature at regular intervals on Folk magazine’s Instagram profile, using promotional tactics such as giveaways (see fig 98) to spark interest. This aims to provide target consumers with sufficient incentive to visit the store and to encourage future purchase of the brand. In addition, Folk print magazines will be distributed in store, to enhance the shopping experience. In GIVEAWAY: All American, outdoor heritage return for the enhanced exposure that Folk magazine will obtain from distribu- brand Fitch is giving away these two handcrafted, quality exclusive bags. One for you tion in Fitch stores and on Instagram, it is proposed that Folk write a feature on and one for a friend! In order for a chance to win, use the hashtag #introducingfitch and Fitch products over a number of publications, thus increasing awareness of the check out one of their new stores in Georgia, Fitch brand amongst target consumers and encouraging traffic to the stores. New York, San Fransisco and Santa Monica. Fitch Reach The American- outdoorsy ‘live authentic’ ethos of the magazine is synergistic with Fitch’s new evolved essence and therefore this collaboration aims to sup- Fitch 50,000 port the rebranding process whilst, at the same time appealing to the millen- followers nials ‘thirst for culture’ (WGSN Think Tank, 2014) - thus providing them with ‘deeper value’ (Saw,M.2009). Therefore, this collaboration has the potential to entice not only the target demographic but also to broaden its consumer base, thus enabling the brand to achieve its brand awareness and customer acquisi- 517, 000 tion objectives. followers

(Please refer to page 90 for potential risks regarding the collaboration) Fig 98: Promoting Fitch products on th Folk Magazine Instagram 82 Fitch Products featuring on the Folk magazine website

EDITORS PICK | FITCH

We at Folk Magazine are proud to be a part of the launch of Fitch, the new and evolved version of Abercrombie and Fitch. Their introductory ‘Fitch Field’ range is inspired by the outdoors, and is exclusively ‘Made in America’, featuring functional yet stylish casualwear. We feel that this is certainly a brand to watch. See below for a selection of our favourite Fitch products. When you click on an image, it will send you straight to their website!

Also, don’t forget to check out these new Fitch ranges in store (located in Santa Monica, San Francisco, Georgia and New York) where you’ll be able to see our very own Folk photography, which will be proudly displayed on the walls!

83 Fitch IMPLEMENTATION AND CONTROL

84 MEASURING SUCCESS

Following the introduction of the Fitch concept, the company will employ a number of key performance indicators and specific metrics to frequently monitor the effectiveness of the each implemented strategy. In addition, managers of each store will be required to immediately notify head office any teething complications, enabling the company to make any necessary changes during the critical trial phase, before they escalate (Lancaster, G and Massingham, L. 2011).These measures will ensure the SMART objectives (specified at the beginning of the plan) are being met.

SMART objective (KPI’s) Metrics used to measure effectiveness Frequency of progress review

Brand Awareness - Extensive market research will be undertaken (including satisfaction Weekly Increase awareness of the new brand surveys and online questionnaire’s to establish levels of awareness and portfolio to 20% of the 24-32 age seg- the general consensus) in the area of the concept stores. ment by the end of the first year. - Frequency of You-tube hits/views of the new promotional video.

- Frequency of images uploaded to the ‘Fitch Stories’ Instagram screen.

- Measuring the ‘delivery rate’, ‘open rate’ and ‘click-through (Chaffey, D.2012) of all emails sent out to ensure Fitch related messages are being received.

- Recording number of social media users using the #introducingfitch hashtag.

- Tallying the number of press articles referring to the launch. CONTROL Financial objective Monitoring of weekly takings (compared with existing A&F stores). Weekly (for 2 months), Revenue increase and overall perfor- then monthly mance of Fitch concept stores to be thereafter) 25% higher than equivalent existing A&F stores by the end of the first quarter (compared to 2014 results)

- Footfall counters will be installed at the entrance of each concept Weekly Customer Acquisition store to measure frequency and volume of customers entering. - Counting the number of customers adding Fitch items to their Increase concept store and online foot- wishlists on the website. fall by 10% compared to an equivalent sized existing store over the next 1 year.

Table 20: Control: measuring success

85 IMPLEMENTATION AND MARKETING ACTIVITIES TIMELINE

2016- CRITICAL TRIAL PERIOD Stores will The ‘People strategy’ (Wood, M.2013): be open to a Existing members of staff (in the chosen select number Plasma screens store locations) will be informed of the of potential will be installed changes and upcoming marketing strategies, customers in store win- to ensure they are executed with maximum and industry dows (where effect and to ensure the set objectives are representitives the concept met. When the stores are opened, it is cru- (to recieve stores will be cial for these members of staff to reinforce feedback prior located) to the brands new brand values and image and to launch) exhibit the new to make customers feel welcome within promotional Following the stores. Fitch’s customer service will be video campaign. Send out extensive attentive and of an impeccably high standard Fitch products market to mirror the premium quality products on influential research, offer and to encourage repeat custom. celebrities and a new (in ‘Event triggered’ bloggers to store only) - Staff at each existing A&F stores (Chaffey, D,2012) help spread Fitch web- will be asked to actively request and collect promotional emails awareness of site will be customer email addresses to add to the and personalised in- the new brand. deisgned database. vites will be sent out to new and existing customers on the database.

January March April July

Old Abercrombie Fitch products and Fitch furniture will start featur- Fitch related and equipment ing on Folk life- POS will be will be removed style magazines positioned IMPLEMENTATION Extensive and replaced with digital platforms around the market new Fitch visual and print maga- existing research will merchandising, zine. Release new pro- Abercrom- be undertak- fixtures etc into motional video Confirm a bie and Fitch en to inspire the chosen store to create a buzz contract stores. new product locations. prior to launch portfolio and with Folk store design. Lifestyle magazine Fitch product Send out Fitch Stories will be devel- Friendly press release Instagram Product manufacture: oped exclu- user trials of to promote screens will Fitch product range sively in US website fea- store launch be installed will be screened and vendors based turing Fitch event parties in key loca- developed and tested on customer products and new tions near by existing and po- feedback. tential customers and A series of campaign (to gain cus- brand. the new con- influencial channel imagery will be tomer feed- cept stores. members to establish designed, conveying back prior to Send out VIP their feedback. the brands evolved launch) and press essence. This will invites for feature across the launch event various platforms in- party. cluding social meida, the website, within the concept stores etc.. 86 The marketing plan will take place over the course of the 2016 calendar year. Fitch concept launch Following extensive market party event (invite research and planning, the only): majority of promotional New York store: 6th August and marketing activities will begin to be implemented Georgia store: 11th August Overall performance around July. This will ensure A click and col- review: Market research and that a considerable ‘buzz’ is Santa Monica store: 16th lect service will If the Fitch concept monitoring of You- August be introduced, has proven profitable, acheived prior to the official which will be tube hits and contri- it will start to be rolled launch of the concept stores butions to the ‘Fitch San Fransisco store: 19th available via the out into more stores Stories’ Instagram and A/W16 collections. August iPads and inter- across America and in active screens screen will take place international locations. in store. on a weekly basis. The Fitch product Overall sales and profits will portfolio will also be be reviewed in January 2017, extended at this point. to establish whether or A ‘live chat’ feature will not the Fitch concepts have be installed onto the new in-store Fitch website proven profitable, before and to the existing A&F they are gradually rolled out website, to encourage across the USA and interna- customers to voice their tionally. opinions on the new Fitch Field collections. At this stage, ALL customer touch points can start to be changed to ‘Fitch’ August September October December January 2017

Official Launch of Fitch concept to the public Review success New York store: 8th August Monitoring of of ‘Fitch Stories’ If demand should war- weekly takings Instagram screen rant it, Fitch merchan- Georgia store: 13th August for 2 months before imple- dise will be available for after the launch menting more purchase online via the Santa Monica store: 18th August (to ensure finan- in additional existing Abercrombie cial targets are locations (both and Fitch website (ini- San Fransisco store: 21st August being met) domestic and tially for USA locations international) On each of the official public only using the com- launch days, the first 50 custom- pany’s existing logis- ers to enter the store and make tics and distribution a purchase will be recieve a free strategy). Fitch field t-shirt.

New promotional videos will be released on a fortnightly basis.

87 Fig 98a: Own Image FINANCIALS

Responding to the requirement for radical Concept store launch (year 1) Mass Market Launch (year 2- If received well) change, Fitch will make a significant initial investment into the future of the organisa- Estimated costs Estimated costs tion with a redevelopment spend of $3.5 Store refurb for concept trials x 4 US $250,000 x4 Store refurb for all other US stores $35,000 per shop million, acknowledging the fact that; ‘striking (including in-store digitalisation and new (including in-store digitalisation and new the right cord is difficult and often costly’ (Gad, T visual merchandising) visual merchandising) (2001p23). Promotional activities Promotional activities

Statistical forecasting approach - Launch events $20,000 - Internet advertising $500,000 Recognising the complexity in predicting fu- - Promotional videos $200,000 ture costs, the financial forecasts for the Fitch Website re-design $150,000 concept launch (see table 21-22) have been - Celebrity endorsement $300,000 made using a mixture of judgemental, sta- - Internet advertising (including You- $500,000 PR $100,000 tistical and research-based approaches. This tube ad-placement) Market Research $350,000 will enable the company to predict the most - Promotional videos $200,000 Collaboration with Folk magazine $25,000 realistic and accurate figures (Wood, M.2013). - External Instagram Screens x8 $40,000 Warehousing logistics- roll out changes to $300,000 Product development $1,000,000 supply chain In order for the Fitch concept stores to Total costs $10.4m be deemed a success, the company aim to Website re-design $150,000 Table 22: year 2 estimated costs achieve revenue 25% higher than the existing PR $100,000 equivalent average sized Abercrombie and Market Research $350,000 Fitch stores (see table 23). Collaboration with Folk magazine $25,000 Warehousing logistics- dedicated new $75,000 The larger concept store (placed within range team the New York flagship) is three times bigger than the average, and will also have a success Total costs $3,540,000 target of +25% increase in revenue, compared Table 21: year 1 estimated costs with an equivalent sized existing flagship. Calculating Aspirational Target Revenue for concept stores (vs existing) Forecasts Based on the successful revamp of brands such as River Island and Burberry (see appen- Total US Revenue 2014 ($1,96 billion) dix 9 and 10), a revenue increase of +25% is $ Millions /No of US stores (800)= $2.45 million achievable and therefore has the potential to Revenue per US store 2.45 per year turn around the fortunes of Abercrombie and Fitch. (800) Aspirational Target per concept store Smaller Satellite concept 3.07 $2.45 million +25%= $3.07 million Stores (+25%) (Santa Revenue per flagship on the assumption Monica, Georgia and San that it is 3 times larger than the average Fransisco) A&F store= $7.37 million Revenue per US flagship 7.37 Aspirational Target for larger concept store (x3) store (New York)= $9.21 million Concept store (New 9.21 York flagship) Table 23 : year Target revenue for concept stores

88 CONTINGENCY PLANNING AND RISK ASSESSMENT

It must be acknowledged that the proposed change in direction for Abercrombie and Fitch is even more significant than the one they took to move away from their outdoor/sports roots towards the ‘formulaic’, ‘casual luxury’ aesthetic in the 1990’s (Dishman, L. 2015). As noted by Greenwood, G. (1993:p60), ‘It is potentially difficult to change such an established image. This must be particularly problematic when a retailer has worked long and hard communicating and maintaining an image and a presence’. This quote highlights the significant risks in the rebranding and repositioning process, particularly where the changes proposed are so drastic and because the brand has a vast international presence, the process is likely to be considerably challenging (Burgess, K. 2012). However, Abercrombie and Fitch have little choice, as inaction is not an option but they do have the heritage and sufficient resources behind them to achieve a successful rebranding, if handled correctly.

The company will therefore be required to employ effective risk management in order to successfully achieve the set objectives and to maximise chances of success. The following pages specify a number of potential internal and external challenges which the company may be confronted with following the introduction of the new brand portfolio and implementation of the new strategies.

Fig 99: Own image

89 Risk Type Example of Risk Risk Prevention/Mitigation New store - Risk of the new store concept proving to be unpopular. - In the case of the Fitch concept stores proving unpopular, all of the fixtures and visual merchandise will be easily removable. This will help to minimise costs and damage if badly concept - Risks of vandalism or damage of the new digital innovations in store. received. - New digital features fail to improve brand image and cause the company - The new concept will not be rolled out in to more stores until the existing 4 have proven profitable. to lose a significant amount of money. - Increased security procedures will be implemented in order to closely monitor and prevent vandalism. - Risk of bad publicity for perceived wastage after replacing old furniture - The company have acknowledged the fact that they may make an initial loss, due to the heavy investment in these technologies, this is reinforced by Lynch, R, (2012:p276), who and equipment with new (for the concept stores). states that they are unlikely to have any ‘short-term impact on strategy’. However, evidence from competing retailers suggests that they will be worth the investment, and have - Insufficient amount of press coverage following the launch of the new the potential to eventually enhance the position of the company. store concept (preventing attainment of brand awareness objectives). - Old or outdated Abercrombie and Fitch equipment and furniture will be recycled or donated to charity to minimise waste and contribute to the brand’s more philanthropic - Risk of the concept stores failing to achieve the predicted high footfall in image. the chosen locations. - Additional/alternative tactics will be implemented following the launch in order to engage the media, and encourage positive press coverage (such as festival based promotional activity). - The brand has acknowledged the high levels of competition in the chosen locations for the concept stores; however it is felt that the stores content and extensive promotional activity will prevent them from being overlooked. Choice of - Chosen celebrity brand ambassador not well received by the target - The contract with Leah Jenner will only last for a year following the official re-launch of the brand. This will be extended if well recieved, and discontinued if not. celebrity market. - Alternative/additional celebrities may need to be explored. - Negative publicity regarding the chosen celebrity. Product - Selection of product is not seen as desirable by new or existing custom- - The selection of new product to feature in the new stores will be relatively narrow and shallow in order to avoid making a loss if proven unpopular. Initially avoiding a wide and ers. deep range will also simplify the inventory control procedure and will enable the brand to react more rapidly to the dynamics of the supply chain. (Supply and - Decline in the consumer’s demand for functional, heritage outdoor wear. - Exclusive distribution strategy (Wood, M.2013): Product distribution will be restricted to the 4 stores only during the trial period, this will be increased should demand warrant demand) - Risk of the company struggling to keep on top of demand for new stock. it. Fitch product will then be available to order online towards the end of the plan and via the click and collect service in store, but will be restricted to USA locations only, using - Manufacturing/production issues (e.g malfunctioning equipment, industrial the company’s existing logistics and distribution strategy. relations- strikes) - Should the demand for heritage outdoor apparel decline, the brand will explore alternative product categories which hold profit potential. Fitch will also enrol to prestigious - Exceptionally high costs due to manufacturing products exclusively in trend forecasting agencies such as WGSN in order to respond rapidly to the latest consumer and design trends. America. - The company will use quick response systems (QS), point of sale systems and Electronic data interchange (EDI), which will enable buyers to accurately forecast the appropriate - New product selection in the concept stores is too narrow and shallow. amount of SKU’s and to swiftly meet the demands of the consumer. - Ensure a positive industrial relations policy is enforced. - The company has acknowledged the risks of restricting the manufacturing process to the USA only. However, as highlighted in the audit, it is felt that advantages such as enhanced reputation, lower transportation costs and the avoidance of exchange rate issues, outweigh the risks. These benefits have been evidenced by competitor American Apparel, who reported that their LA-based manufacturing ‘ultimately results in the lowest cost and highest value for the customer’ (Li, S et al. 2014). - If the Fitch Field product range proves to be too narrow and shallow, selected items from the existing Abercrombie and Fitch range may need to be used in the short term, Folk lifestyle - Folk Lifestyle magazine choose to end the collaboration for any reason. - A legal contract will be drawn up by both parties for mutual agreement on terms of engagement, this would include period of termination (for the first year of the Fitch con- Magazine col- - Folk Lifestyle magazine may be a victim of bad publicity. cept trial) and specification of magazine quantities supplied. laboration - Inadequate provision of physical copies for the stores. - It would be required that each feature would be approved by Fitch prior to printing. - Feature would not convey Fitch products in a way which conveyed a nega- - Alternative magazines may need to be considered for future collaboration. tive impression of the brand. - Risk of Folk magazine going bankrupt. Customer Risks - Losing the loyalty of the current customer base. - Due to the drastic change in the brand’s portfolio, losing some existing customers is inevitable. However, in order to retain as much of the already loyal customer base as possi- - Failure to meet the customer acquisition objectives (existing negative ble (Munthree, S and Bick, G. 2006), the transition from Abercrombie and Fitch to Fitch will happen gradually and logically. This will also minimise the risks of customer confusion ‘Customer satis- associations preventing customer acquisition). during the rebranding process. It is also predicted that the strategic decision to reconnect with the brand’s origins will help to retain the loyalty of existing customers. faction has be- - Risk of customer confusion during the rebranding process. - Continue to develop desirable product ranges and alluring promotional tactics (perhaps exploring additional channels) in order to attract the target market and continue come one of the - The risk of negative word of mouth (which is enhanced due to the mod- broadening the consumer base. most important ern consumers inclination to openly assert themselves on social media, - Frequently undertaking market research (surveys and focus groups) in order to establish the general consensus. management (Chernev, A. 2011), - Ensuring customers are aware and well-informed of the rebranding process. issuess around’ - Decline in customer interest following an initial positive response - The company will use the existing customer support service on the website, to rapidly resolve any arising customer issues. (Kent, T and - The company’s social media platforms will be used extensively to reassure customers and to respond to any negative feedback. Omar, O.2003) - If a pattern of decline transpires, following the initial buzz of the store’s opening, further promotional tactics will be implemented such as special in-store events, celebrity guest appearances and enticing competitions which will reflect the interests of the target market. Guerilla Mar- - Inappropriate Images uploaded to the screen by the members of public - To prevent inappropriate images featuring on the Fitch Stories Instagram screen, images will be moderated for suitability prior to transmission keting (Fitch - Risk of vandalism - It has been acknowledged that the screens are at high risk of vandalism, however they will be built with a robust design to minimise this. Stories Insta- - Guerrilla marketing tactics fail to attract the target market. - If the Instagram screens fail to generate a reaction from the target market, alternative locations will be considered or alternative tactics will be implemented such as promo- gram Screen) tional ‘Fitch’ tour buses. Warehousing - Failure to effectively and efficiently manage stock following the launch of - The company will employ data analytics tools to effectively strengthen the replenishment and distribution of new stock. and Manage- the new Fitch stock. - Improvement of the two USA warehouse distribution centres to accommodate for the expected growth, prior to mass market launch. ment of stock - Unexpectedly large demand of new Fitch products: insufficient infrastruc- ture. Promotional - The video reaches an inadequate number of viewers (due to the increas- - The video will feature across multiple platforms and channels to ensure maximum exposure (as specified earlier on in the report). Video ingly video saturated digital environment (Trimble, C.2014) - The company will undergo extensive market research and will employ data analytics to establish the sites most frequently visited by the target market. Short clips and links to - The video fails to be seen by the core target market. promotional video will then be featured on these sites. - The video is not well received. - The content of the video will be created based on its relevance to the target audience (following extensive market research), to ensure it correlates with their interests and grabs their attention. - Data analytics will be employed to ensure the condensed version of the promotional video is featured at the start of the You-tube videos most likely to be viewed by the target market. Economic - Negative changes in the economic landscape provoke a significant decline - The brand may need to reassess price architecture to reflect the current climate, and to perhaps explore additional methods of advertisement to maximise exposure and downturn in consumer spending. encourage sales.

Table 24: Risk Management. 90 CONCLUSION

This report has established that the Abercrombie and Fitch brand is currently badly damaged and in need of radical overhaul - inaction is not an option. As acknowledged by Andrews, M and Kim, D (2007) ‘weak or badly managed brands can take many years to revive successfully’, therefore it must be recognised that the proposed changes discussed may not have sufficient immediate effect. Following a similar strategy to UK retailer River Island (formally known as Chelsea Girl), if the new brand concept is received well, then the transition from ‘Abercrombie and Fitch’ to ‘Fitch’ will take place gradually and methodically, in order to be sensitive to the existing customer base (Ewing, M. et al. 1995).

It also is in the interests of the company to continue implementing strategies which will enable them to further develop and sustain a strong brand community. This should ultimately result in a more loyal and devoted customer base (Kotler and Keller, 2012) who will be strong advocates of the rebranded Fitch.

Fitch

Bringing stories of adventure and discovery to life

(see appendix 13 for further future recommendations)

Fig 100: Own image 91 APPENDIX

Further Millennial’s market analysis:

The ‘non-homogeneous’ group (Fromm, J and Garton, C (2013) Appendix 1 (aka Generation Y) Age 19-35 (Valentine, D.2013). Abercrombie’s previous target market, who have now grown into the Millennial generation, were once enticed by heavy logos and a Preppy, Ivy-League lifestyle throughout their teenage years, in order to fulfil their ‘belonging and self-esteem’ needs (from Maslow’s hierarchy of needs) (Hancock, J.2009). However, as a large percentage of Millennials are now in their 20’s-30’s, it is apparent that their purchasing preferences and priorities have changed. Unfortunately for Abercrombie and Fitch, the Generation Z teens who followed did not adopt the similar desire for the ‘cool-kid’ image, instead opting for lower-priced, fashion-forward retailers such as H&M, Zara and Forever 21 (Cazin, N.2014). Hence the strategic decision to refocus the business model and marketing strategies on the Millennial consumer (of 21+ years old) (Feran, T.2014) As the largest generation by population size (Spenner, P. 2014), and arguably with the most abundant purchasing power, Millennials are a generation highly coveted by marketers internationally (Valentine, D.2013). Runyan, R. (2013), argues that this widespread desire to gain their loyalty has been heightened due to their significant influence on the purchasing behaviour of other generations, which means they can ultimately influence the success or failure of a brand.

It is also apparent that the Millennial generation has been repeatedly stereotyped and generalised by brands, which has prevented some from acquiring their loyalty. Therefore, it is crucial for retailers to understand the varying characteristics and purchasing motives of this generation, in order to develop relevant, cost-effective marketing strategies and long term relationships (Ma, Y and Niehm, L (2006:p622).

There are a number of crucial factors which influence the Millennials purchasing behaviour (Lazarevic, V. (2012), including age and culture. This is reinforced by Fromm, J and Garton, C (2013:p52) who highlight the significant differences between the younger and older end of the Millennial generation, due to the contrasts in their life stages. For example, with regards to technology, whilst the younger Millennials have been immersed in the digital world since day one, the older members still remember and appreciate an offline and unconnected world (Banks, L.2013).

This is further reinforced by Bate, M (2014) who maintains that whilst they are ‘early adopters’ of technology, they still ‘have a distinct desire to maintain a sense of traditional human interaction’.

Furthermore, the younger millennial consumer has a distinct desire to ‘fit in’ (Ogle, J et al.2014), whilst at the same time is prepared to take risks with trends in the quest to find their identity. This is in sharp contrast to older members of the Millennial generation, who, as stated by Jin Ma, Y and Niehm, L (2006), have long acquired a personal identity and thus do not rely on edgy trends or ‘style leaders’ to define who they are. Research by Young and Rubicam (2014) strengthens this notion, indicating that consumers in their 30’s are likely to have more ‘fixed tastes’ and are therefore less inclined to experiment and adopt ‘fad trends’.

This analysis further highlights the varying and potentially unpredictable purchasing motives/behaviour of the Millennial consumer group. It is therefore crucial for the brand to employ strategic segmentation in order to identify the most profitable segments to target.

Appendix 2

Additional Social Trends

Health and fitness and the ‘casualisation trend’

Factors such as rising obesity levels (Mintel, 2014) and the profound impact of the 2012 Olympics have triggered a growth in the health and fitness market. Savvy sportswear brands such as Nike and Adidas have responded to this trend using motivational promotional campaigns, integrating more ‘on-trend product’ and by using celebrity endorsement to appeal to a broader market (Euromonitor, 2014). A recent US consumer report undertaken by Mintel (2014) highlights a ‘blurring of the lines between fitness and casual wear’, as consumers are investing in comfortable, versatile and accessible fitness clothing which can be worn both in and outside the gym. This has provoked mainstream retailers such as H&M to also tap into this consumer trend by offering their own sportswear ranges (Mintel, 2014). This ‘overreaching casualisation trend’ (Mintel, 2014). is something which Abercrombie and Fitch could capitalise on.

92 Appendix 3 West Coast Store locations Site selection California: 38.8 million California is renowned for being the most wealthy and populous American state (United States Census Bureau (2014), and, as stated by Kent, T and Omar, O (2003:p127), it has a trend setting population which is ‘open to adopting new ideas and products’. This West coast state is therefore an ideal location to trial the new Fitch concepts. The 2 stores in Santa Monica and San Francisco will have the same aesthetics as the East coast stores, East Coast Store locations however, the product offering will be slightly different due to the contrasts in climate.

‘San Francisco continues to be one of the most highly desirable places to visit, live and work’ (Cushman and Wakefield, 2014) New York: ‘Our ability to attract customers Population: 8.4 million to our stores depends, in part, on San Francisco: the success of the shopping malls Population: 837, 442 720 5th Ave or area attractions in which most Westfield San Francisco Centre The largest concept store will be positioned on the bottom floor within the New of our stores are located’ 865 Market St York flagship store. Due to New York’s dense population and the high levels of pub- (Abercrombie and Fitch Co, San Francisco, CA 94103 licity which a flagship store opening generates, this location will help to achieve the 2014). brand awareness objectives. The San Francisco concept store will be positioned within the Westfield shopping cen- As stated by Manlow, V (2013), the flagship store; ‘functions to be the ultimate em- tre. According to a recent retail report by Cushman and Wakefield, (2014), San Fran- bodiment of the brand which serves to communicate the personality and lifestyle of cisco has benefited greatly from the strengthening of the US dollar. The report states the designer’. Therefore, this world renowned location will help to reinforce Fitch’s that this area has been the ‘catalyst for greater consumer spending’, which is a result of desirable brand ethos. increasing affluence and a growth in the number of tourists in the area (Cushman and Wakefield, (2014:p1). This signifies the profit potential for the Fitch concept store to What’s more, as the brand originated in New York, this location is the most appro- be located here, due to the enhanced likelihoods of achieving high footfall (made up of priate, in terms of reconnecting with its origins. both tourists and locals) as well as an increase in the customers willingness to spend which would assist the company in achieving the financial and customer awareness objectives.

Georgia Santa Monica Population: 10 million Population: 3.884 million

This concept store will be located in the ‘Mall of Georgia’, one America’s largest Third Street Promenade shopping centres and the largest in Georgia state. It is predicted that this busy 1345 3rd Street Promenade location is likely to encourage a wealth of potential customers. Santa Monica, CA 90401

In addition, it is considered that the agricultural quality of the South Easterly states (Kent, T and Omar, O.2003), correlates well with the brand’s outdoorsy essence. The Santa Monica Fitch concept store will be positioned within the Third Street Prom- enade, one of the busiest shopping destinations in the area. Amongst live entertainment, farmers markets and movie theaters, this store is predicted to attract a wealth of tourists and locals.

93 Appendix 4

Year-on-year Financials (in $ thousands)

2009 2010 2011 2012 2013 2014 Sales 2,928,626 3,468,777 4,158,058 4,510,805 4,116,897 3,744,030 Gross Profit 1,883,598 2,217,429 2,550,224 2,816,709 2,575,435 2,313,570 Operating 117,912 237,180 221,384 374,233 80,823 113,519 Income Net Income 78,953 155,709 143,138 237,011 54,628 51,821 from Opera- tions Net Profit 254 155,709 143,934 237,011 54,628 51,821 %change 18.4 19.9 8.5 -8.7 -9.1

Sales by seg- 2009 2010 2011 2012 2013 2014 ment Total 2,928,626 3,468,777 4,158,058 4,510,805 4,116,897 3,744,030 US 2,710,842 2,615,138 2,161,183 1,966,677 Int 894,616 1,195,016 1,178,798 919462.44 Web 552,600 700,651 776,916 854607.6 US 65.2% 58.0% 52.5% 52.5% Int 21.5% 26.5% 28.6% 24.6% Web 13.3% 15.5% 18.9% 22.8%

Quarter 4 financial results

Full Year 2014 Sales Results Comparative Sales ($ in mil- Net Sales % Change Stores Di- Total Direct lions) rect-to-Con- sumer U.S. $ 2,408 -9% -9% 8% -6% International $ 1,336 -8% -18% 13% -12% Total Com- $ 3,744 -9% -12% 10% -8% 854607.6 pany

Source: http://www.abercrombie.co.uk/anf/investors/investorrelations.html

94 Appendix 5- Competitor Profiling Operating under the PVH group, The analysis of two competitors was undertaken to further American competitor Tommy Hilfiger illustrate the brand’s situation compared to competitors in its is a prime example of a brand that has successfully re-established brand equity. market. The successfully revitalised premium retailer Tommy Following a decline in the sales of their Hilfiger was selected in addition to teen retailer Urban Outfitters heavily logoed, baggy, casual apparel, to compare the marketing activities of competitors belonging to which brought the brand success in the contrasting market levels. 1990’s (O’Connor, C. 2015), the brand swiftly adapted to the changes in the demands of the consumer by developing a more sophisticated product portfolio. By TOMMY HILFIGER SWOT strategically capitalising on the demand for niche premium brands (Paton, E. 2014) the brand employed a ‘marketing skimming’ pricing strategy (Jackson and Strengths Weaknesses Shaw, 2009), instead offering a more sophisticated American preppy style - Strong international presence (350 stores worldwide). Particularly popular within the American and - Do not provide a mobile app (O’Connor, C. 2015). Having experienced Western European markets. The brand reported a dramatic increase of global retail sales of $2 billion, a $2 billion increase in global retail sales from 2009-2013 (PVH, 2015). according to the BCG Growth Matrix (Lancaster, G and Massingham, - Similar pricing and product offering to Calvin Kline (also owned by from 2009-2013 (PVH, 2015), they are L.2011P:478), they are the cash cows of the group. PVH). the cash cows (Lancaster, G and Mass- ingham, L.2011P:478) of the PVH group - Have a strong product portfolio, evoking the quintessential American Heritage style. - Some consumers still may be put off my Tommy Hilfigers past edgy, (who also own Calvin Kline). urban image (which was arguably over-exposed during the 90’s) - Conduct an effective ‘differentiated marketing strategy (Wood, M.2013), including the Tommy Denim More recently the brand Tommy Hilfiger and Tommy Hilfiger and the Hilfiger Collection, which are effectively tailored to different consumer - Ad campaigns arguably lack diversity. has adopted the opportunities of the dig- segments (in terms of style and price) ital era, by focusing on digital marketing - Lack of information on the brands ‘green marketing activities’, tactics, which accounted to over 25% of - Celebrity endorsement- Strong associations and promotions with fashionable celebrities (such as overall marketing spend (Euromonitor Internal Alexa Chung and Kendall Jenner) - Have recently tailored their clothes smaller, which may be perceived (2014), and have also developed new discriminatory (O’Connor, C. 2015). state of the art digital shows rooms. - Strong digital marketing activities for example ‘Meet the Hilfigers’) However, it could be argued that the minimalistic aesthetic of these digital- - Innovative product offering- such as solar powered phone charging jackets ly enhanced stores, fail to convey the brands quirky American essence. Hence- - Strong cause related marketing: Involved in a number of charitable organisations (Save the Children, forth, it may be detrimental for the WWFN etc) under the ‘Tommy Cares’ scheme. Donated 50% of all net proceeds from their solar brand to continue focusing too heavily power jacket to the Fresh Air Fund. on these innovations, as they run the risk of straying too far from its roots, and - Digitally innovative bricks and mortar store, which effectively portray the Tommy Hilfiger lifestyle. thus losing loyal customers (Bloomberg. (2015) - Recently staged ‘super-bowl themed’, innovative/memorable runway show at NYFW which was attended by a vast number of celebrities and influential players within the fashion industry.

- Adhere to a ‘selective distribution strategy’ (Wood, M.2013), which arguably heightens the brands exclusive image.

Opportunities Threats

- Develop a mobile app. - Fierce competition from international brands and new, innovative competitors entering the market. Tommy Hilfiger Digital Showroom - Extend product lines (new fitness ranges for example). Source: WGSN - Preppy, ‘American-cool’ style may be on-trend and desired now, how- - Could continue to drive growth within emerging markets and locations such as Asia Pacific where ever due to the rapidly changing market there is a risk that it may date. the brand has a minimal presence (Euromonitor, 2014). - Ceaseless popularity of lower priced, fast fashion brands. - The brand could capitalise on the strong growth within the luxury markets.

External - Face competition from other well established Heritage brands such - Enhance cultural aspects of the brand perhaps collaborating with an artist/ musician. as Burberry and Ralph Lauren.

- Maximise ‘green marketing activities’. - Choice of celebrities (such as Rita Ora and Alexa Chung) to endorse the brand may not appeal to all segments of Tommy Hilfger consumers. Have only used young celebrities which may not appeal to older generations.

95 Appendix 5a

URBAN OUTFITTERS SWOT

camronpr.com Strengths Weaknesses - Urbam Outfitters in store photo booth - Extensive product portfolio. The brand supplies a range of different brands, including Adidas and Without Walls. - Have been scrutinised for innapropriate and offensive labelling/slo- gans on some of their merchandise (Segran, E. (2015). Urban Outfitters is one of Abercrombie - Offer a vintage collection which is unique to each store. and Fitch’s closest competitors. Founded - Such a broad product offering may be confusing or overwhelming for as a small store in Pennsylvania in 1970, the - Provide an engaging and ‘quirky’ e-commerce site (Westnedge, H. consumer. brand offers an eclectic mix of merchandise (2013) for both apparel and home. The brand has - Low presence in up and coming markets such as Asia. rapidly expanded across America and has Internal - Have an international presence, with large flagships in high footfall built a presence in regions such as Canada areas. - Lack physical presence (compared to competing retailers). and Europe. Using unique and memorable in-store experiences Urban Outfitters en- - Strong social media presence. - Not digitally innovative, fail to provide a mobile app. tertain and visually stimulate the customer using attributes such as photo booths (see - Sister brand to Anthropologie and Free people, both profitable top left image) and charging systems, which retailers Mcgrath, M (2014) is one of the brand’s key differentiators. - Impressive and distinctive flagship store environments. However, whilst the brand’s unique in-store experience may have enabled them to - Collaborations with up and coming artists (such as Weyes Blood), achieved competitive advantage, it is apparent that their undesirable product offering has held them back. As highlighted in the SWOT the product, which famously em- Threats bodies the ‘hipster’ aesthetic, which may no Opportunities longer be seen as desirable or ‘cool’ to the modern youth consumer (Segran, E. (2015). - Increase physical footprint in both international and domestic re- - The brand’s ‘hipster’ aesthetic has become mainstream and is no This was evidenced with a reported 9% gions. longer as desirable to some (Segran, E. (2015). decline in net sales throughout 2013, falling behind its sister brands Anthropologie and - Expand into emerging markets. - Saturated market, with many retailers targeting the same demo- Free People (Mcgrath, M (2014). graphic (Burgess, K. 2012) External -Acquisions and mergers with other companies. The brand has now acknowledged these - Intense competition, particularly due to the threat of fast-fashion changes in the target consumer, by in- - Could enhance their multi-channel business model. Incorporating budget retailers who, due to the economic down turn, have more troducing new, more relevant lines. For more digital innovation and developing a mobile app would assist appealing price points. example, responding to the growth of the them to achieve this. outdoor market, the brand launched the - Without Walls collection, which according - Continue to build on their product portfolio, perhaps exploring to an article by Forbes ‘received tremen- more collaborations with new designers. dous customer response’ (Trefis Team, 2014). - Celebrity endorsement.

96 Appendix 6 PEN PORTRAITS

The pen portraits below provide further insight into the characteristics of the Fitch core consumer (male and female). These can then be addressed by the company to ensure their expectations are being fulfilled.

MEET KELLY

Kelly, aged 27, is a prime example of a female Fitch consumer. She appreciates fashion and strives to appear stylish, however she isn’t a slave to the trends and tends to opt for clothing and brands which reflect her quirky and laid back personality. Having established her identity, Kelly doesn’t like to be dictated by brands about what she should wear (Paton, E. 2014), but will often take inspiration from her celebrity style icons such as Jennifer Lawrence, Zoey Deschanel and Kate Hudson. With reference to the VALS segmentation system, Kelly belongs to the ‘makers’ segment, due to her increasing concerns with the MEET ADAM state of the environment and will deliberately avoid brands which neglect to operate sustainably. At age 31, Adam is at the latter age of the millennial generation and is a typical example of a male Fitch Having worked hard at university, Kelly has fought customer. Currently living with his parents in Wil- her way up the career ladder and has a reasonably liamsburg, USA, Adam prioritises play over work high disposable income. Therefore, as a HENRY (High and has jumped from job to job, as he is uncommit- Earners Not Rich Yet), she is not averse to spending a ted to a set career path (Malik, S.2015). He has no bit more on apparel items, but will occasionally pur- desire to settle down with a family at this stage. chase from lower market brands for a more unique look (Hines, T and Bruce, M.2008). Kelly prioritises With a strong desire to travel, Adam is a ‘global meaningful experiences and spending time with loved shopper’ who relishes cultural experiences (Bell, ones over ‘things’. She will dedicate time to exer- A.2015). He thinks of himself as a ‘free spirit’. cise, trying out new healthy recipes, socialising with Passionate about music (Runyan, R. 2013) and will friends, and will make time to travel as she savours spend the summer months visiting different festi- cultural experiences (Bell, A.2015). Having been vals around the globe such as Coachella in LA and introduced to the digital era at a young age, Kelly is Glastonbury in the UK. He enjoys outdoor pur- digitally fluent and will often use her smart phone for suits and will often go camping, hiking or mountain purchases. However, she still remembers and appre- biking with friends. With reference to the VALS ciates the offline world, and enjoys the shopping in lifestyle segmentation system, Adam is an ‘experi- physical stores. encer’ and is willing to pay a premium (Runyan, R (2013) for high quality pieces to support his busy lifestyle (Walker, D (2014). Once identified himself as a hipster (wanting to be unique and alternative), now opts for simpler, cleaning-designed clothing (Segran, E. (2015).

97 Appendix 7 Elemental Macro Trend

One of the criticisms Abercrombie and Fitch has faced, is the lack of sensitivity to The demand for retreat has also been recognised by Geir Berthelsen, who the changes and trends in the macro environment. This must now be addressed founded the Institute of Slowness, encouraging people to avoid getting in order to regain relevance. Having explored the wider macro environment, the sucked in to the rapidity of the modern lifestyle, instead focusing on the following Elemental trend has been identified as one of the most prevalent, and things that really matter. The concept of ‘slowness’, permits people to ‘live arguably has a wider potential to effect the future direction of current brands. This the moment’, instead of being preoccupied by the stresses of the past or trend explores the power of simplicity and the desire to escape from the chaos future (McCarthy, M 2015). Savvy retailers such as Selfridges adhered to and stress of the modern world. this trend in 2013 by providing customers with a minimalistic and calming ‘No Noise’ room, allowing them to unwind, relax and de-stress, separate ‘consumers are turning away from their busy, hyper connected, digital lifestyles and prior- from the noise of the city (see image below). itising personal fulfilment and well-being’ (LSN Global (2012) As the pressures of modern life and the developments in disruptive digital This trend is ubiquitous due to the relentless and arguably disruptive devel- technology show no sign of decelerating, people are likely to become opments in technology, which, as stated by Lancaster, G and Massingham, L. more and more physically disconnected. This further indicates that the (2011:p52) have created a ‘defragmented society’. The pressures of the competi- need for retreat, slowness and the simplification of the complex modern tive working environment, the economic and political volatility and the challenge world will continue to be relevant in future years. to find time to unwind also contribute to this desire (LSN Global, 2012). Brands therefore have the opportunity to capitalise on this trend, owing Whilst the advances in technology have had a number of advantages (such as the to the fact that, with reference to LS:N Global’s McCarthy, M (2015) it has simplicity of human communication), it is apparent that many people are over- the potential to allow them to flourish in the long term. This is strength- whelmed by them instead choosing to prioritise ‘their world, their experiences and ened by WGSN News (2015) who maintain that consumers are prepared how brands make them feel’ (Cooke, S et al, 2014). This is strengthened by the to pay a price for products that simplify their hectic lives. WGSN Forecast team, (2014) who state that ‘people are no longer as excited by technological progress as they are exhausted by it’.

According to a study undertaken by LS:N Global, people are also becoming increasingly sceptical about these technologies and the internet, with ‘just under half (47%) agree that internet and social media have eroded people’s sense of personal values and trust’ (Jordan, A (2014). Perhaps due to the amount of personal data that is tracked and the unavoidable surveillance of CCTV, people are now feeling uneasy, and desire a place of solace.

Meanwhile, Bate, M (2014), highlights the negative impact on the ways in which people are communicating with mobile technologies. This has been acknowledged by the sportswear brand Lululemon (see following page) whose recent stripped “Selfridges’ No Noise is a project which invites customers to find a moment of peace in a world back campaign advises people to ‘slow down, live in the moment, look up and where we are bombarded by a cacophony of in- make the world a better place’, This taps into the older millennial consumer’s formation and stimulation. We hope that people desire to preserve human interaction (Bate, M . 2014) will enjoy the restorative qualities of quietness by visiting our Silence Room and by participating in a specially curated programme of quiet experiences.” - Alannah Weston, Selfridges Creative Director

98 The White Wolf Hotel

Responding to the seemingly widespread Wanderlust Fest demand for retreat from the fast paced ‘Wanderlust Festivals are all-out celebrations of mindful living’ modern world, the White Wolf hotel, located in Panafiel Portugal, allows its The Wanderlust festivals tap in to the growing need for slowness guests to unwind and escape in tranquil and escape, by providing people with time away from the labori- environment. The hotel, which exhibits ousness and pressures of every day life. These festivals take place a minimalist aesthetic, endeavours to in various locations across the globe. Offering visitors to inter- encourage guests to ‘embrace the peace mingle with people of similar dispositions, as part of a community. and spirituality of the natural environment’ (Summerton, D (2014) With regards to the American market, the increase in the num- bers of people participating in activities such as Yoga is further evidence of the search for opportunities to retreat and unwind ‘The buildings dive in the ground, in a unification process that enhances the (Euromonitor, 2013) relation of proximity between the user and the site, between man and nature,’ say the architects. = ‘We bring together a remarkable group of yoga and meditation instruc- tors, musical performers, speakers, artists and chefs for transformation- al retreats in the world’s most awe-inspiring natural resorts. This is an experience that gets into your mind, body and soul’

Cultural influences ‘Driven by quiet introspection, artists are creating works that encourage the audience to slow down and reflect’ How are consumers escaping? (Bell, A. 2015).

Lululemon: #GivePresence: Escaping technology.

Bate, M (2014), highlights the profound, negative impact of the growth of mobile technologies in terms of the ways in which people Pipilotti Rist: are communicating. This has been acknowledged by the sportswear brand Lululemon, who’s recent stripped back campaign advises Installation: ‘Worry Will Vanish’ people to ‘slow down, live in the moment, look up and make the world a better place’. An artist who has also addressed this Their latest highlights the distracted and disconnected behaviour people are displaying due to the arguably unavoidable preoccupa- trend is the experiential artist Pipilotti tion with mobile technology, which taps into the older millennial consumer’s desire to preserve human interaction (Bate, M . 2014) Rist. He has developed a sensory exhibition in London which enables visitors The campaign expresses the disapproval of the modern consumers urge to compulsively check their social media sites, email inbox to withdraw from the chaotic, frenzied and messages on their phone, thus breaking down the natural forms of communication. pace of city life by taking them into their http://purple.fr/diary/entry/pipilotti-rist- comfort zone (Hauser & Wirth, 2014). “I think we are becoming more and more a disconnected, multitasking culture” worry-will-vanish-at-hauser-and-wirth- The moving light installations project a london repeating video of idyllic wheat feilds and grassy knolls and aims to explore the relationship between nature and the Many consumers’ body. Visitors are encouraged to relax senses have become under white duvets, which are strewn dulled as they spend across the floor(Jordan, A. (2015). more and more time in front a screen ‘Inspired by the 1930s concept of Autogen- (Walker, D and Bu- ic Training – using a series of visuals and sounds to induce visitors into a state of re- chanan (2015) laxation’ (Walker, D and Buchanan (2015)

99 Appendix 7a Outdoor and Folk Festivals Escaping to the outdoors Latitude Festival, Suffolk (the outdoor market) Stillness and clarity of thought is found in the great outdoors

Glastonbury Green Fields. A US consumer report, undertaken by Euromonitor (2013), highlights how nature has become an important antidote. Due to more of the global population living in increasingly congested metropolitan spaces, people yearn for retreat to natural environs, in order ‘to rid themselves of distractions and stress and shift away from busy urban lifestyles’ (Sturch, K. (2014). This has provoked a rise in the number of American’s adding outdoor rooms in their gardens for a place to escape and unwind (Euromonitor, 2013). see fig x

This retreat to nature has been demonstrated in the soar of the number of people embracing outdoor pursuits (Berwin, L.2010), with statistics by Mintel. (2015) indicating that ‘As the outdoor industry around ‘half of Americans aged six and older [participate] in outdoor activities’, which has evolves and the con- ‘Into the woods festival ; seen the significant growth in the outdoor apparel market, which rose 7% in 2013 (Eu- sumer segment grows, romonitor, 2014). This has been reinforced by recent WGSN reports which confirm that the demand for casual brands are looking for ‘ways to cultivate a deeper connection with nature by simplifying yet functional pieces increases’ gear and going back to the origins of outdoor appreciation.’ (Sturch, K. 2014). Sasquash outdoor festival Washington (WGSN Trend Watch It is evident that people are recognising the physiological benefits of these outdoor ac- (2014). tivities, as it allows them to find consolation in the offline world. This includes non-com- ‘Music festivals have – perhaps petitive activities such as hiking and camping (Sturch, K.2014), as well as increased partic- more successfully than any other ipation in sponsored challenges such as running and mountain climbing (Berwin, L.2010). service – grown and adapted Functional outdoor retailers such as UK heritage brand Barbour have reaped the benefits alongside their ageing demographic by appealing to millennials' of this consumer trend, as people demand functional pieces which will support these thirst for culture and memorable pursuits (Armstrong, S. (2014). experiences. The average age of a festival-goer is now 36; the 16-year- It seems apparent that many people, including those belonging to the millennial gener- old who went to Reading Festival in ation are exhibiting an increased desire to escape, at least temporarily, from the con- the 1990s is now the 30-year-old straints of a technologically dense society. This is not only clear in the embracing of the taking the family to Latitude’ aforementioned activities including hiking and mountain climbing but also in the dramatic (WGSN Think Tank. (2014). surge in popularity of outdoor festivals. As stated by Blacks Leisure chief executive Neil Gillis, ‘People in their 20s are driven by the festival business. Festivals are huge now and it is getting people more interested in the outdoors’ (Berwin, L.2010). Zen Design: Modern Henceforth, brands targeting millennials have the opportunity to capitalise on this trend architecture- responding by fulfilling the consumers interest in the outdoors, particularly as, according to an article to the trend in Retail Week, ‘the fastest growing demographic in the outdoor market along with older ‘Simple, elegant glass customers is people in their 20s’ (Berwin, L.2010). This suggests that Abercrombie and creates light, space and Fitch’s outdoor origins now have a place in the modern retail environment, and now have fluidity between the inside significant profit potential. and out / Outdoor areas double in size and open up with floor to ceiling doors / Glass and swimming pools create an impression of endless space’ (WGSN,2014)

100 Appendix 7b

Travelling to Escape ‘millennials are considered the nomadic generation that ‘‘Millennials express an overwhelming desire for adventure, craves authentic and original experiences’ and they pursue these opportunities as if they are keeping a (WGSN Think Tank, 2014). scorecard and checking off experiences as they go’ (Fromm, J and Garton, C (2013:p128)

Google- Field Trip app Due to the accessibility of travel in the modern world and ‘Live like a local when you travel to the modern consumers’ tendency to ‘settle down’ much new places’ later on than in the past (see PESTLE), there appears to Google have responded to the ‘digital be an unremitting rise in the number of people who are fluency’ (Kotler, P.2012) of the millen- inclined to travel, particularly amongst the millennial gen- nial generation as well as their interest eration (Robinson, H et al. 2012). in culture and their desire for ‘novel experiences and adventure’ (Geoffrey P. Lantos, (2014). The app enables the As expressed by Fromm, J and Garton, C (2013:p38), it is user to explore and discover unique apparent that a common ‘life stage characteristic’ displayed details about their current location . across the different segments within the millennial generation is their inclination and ability to ‘live the moment’. This also applies to millennial parents who, as illustrated in a report by WGSN Think Tank (2014), believe that ‘having a child isn’t a barrier to exploration’, and thus fulfil their desire to travel anyway. Influencial brands such as Three mobile Whilst this trend is particularly relevant to the millenni- have tapped into this trend incorporating travel within their marketing campaigns, in al consumer, reports by LS:N global indicate that it also order to effectively adhere to the interests applies to older generations ‘who want to recapture the and motivations of the younger generations. travel of their 20s’ (Cooke, S and Buchanan, V (2014)

With reports by the United Nations World Tourism Or- ganisation highlighting that international tourism generated $1.4 trillion in 2013 (Bell, A.2015), it is evident that this desire to travel remains a global trend’ (Bell, A.2015), and is seemingly a key way for consumers to find escape.

http://ouropenroad.com/about/ Fig x

Millennial traveller Instagram profiles:

‘Millennials more than non-millennials reported a desire to visit every con- tinent in their lifetime (70 percent vs 48 percent) and travel abroad as much as possible (75 percent vs 52 percent)’(Fromm, J and Garton, C (2013:p128)

101 Appendix 7c FREEDOM FOLK (INSPIRED BY THE ELEMENTAL MACRO TREND) The ‘Freedom Folk’ micro trend stems from the aforementioned Elemental macro trend, which indicates a widespread consumer desire to escape from the burdens and chaos of modern life, and illustrates a bohemian or ‘folk’ aesthetic focusing on more meaningful things such as community and culture (see fig 3). This trend is rooted in nature and will influence the design direction of the initial Fitch Field collections. The trend is also influenced by the ‘Made in America’ initiative, which indicates a widespread desire for home produced, ‘country specific product’ (Bell, A (2015).

Styling: Quintessentially outdoors, the new ‘Fitch Field’ men’s and women’s wear collections are inspired by woodsmen and deer hunters, which links back to Abercrombie and Fitch’s outdoor roots. This nature inspired aesthetic was identified by WGSN as a key trend in Milan this season. Designers such as Misoni and Fendi (see fig 1) were reported to ‘ display an artisanal opulence, with intricate, multi-coloured knit and weave constructions blended, patched and layered into heavily textured, sophisticated country looks’ (WGSN trend forecast AW 15/16)

Key words: Nature, Folk, Community, Traditional, organic, natural, simplistic, quality, sophisticated, American heritage, outdoors, soft, heavily textured, season less, camping, Folk, hunting, heritage, premium textiles/fabrics (natural and technical blends) understated, durable, countryside, freedom, festivals, classic, sophisticated, pastoral, rustic.

Key Fabrics: Paraffin waxed cottons, durable cotton twills, organic cotton, waterproof moleskins.

Key Colours: Earthy Pallet of olive/leafy greens, rustic red, soft browns to reflect the outdoor theme.

The company has recognised that the ‘Freedom Folk’ micro trend (which has inspired the aesthetic of the initial Fitch Field range) could - like most trends - be ‘short-lived’ (O’Connor, C. (2015). Trend forecasting sites and frequent consumer analysis should be used to ensure the target audience is provided with the products they desire. However, by minimising the amount of ‘fad’ products within the range, it is expected that the exposure to shifts in consumer preferences and emerging fashion trends will be minimised Outdoor heritage: . Fig 3- ‘American Re-rooting (WGSN, 2015) ‘While part of the market focuses on new technology, the other looks to escape today's fast-paced lifestyle in favour of a simpler time. Traditional handcrafted constructions, fabrics produced in heritage mills and low-tech functionality are American ‘Re-rooting’ ‘Along with regrouping, people are ‘re-rooting’, drawn to the idea indicative of the desire to connect of laying down roots in growing communities. As illustrated by Hypebeast’s The Atlanta Project, the southernmost states of the with nature without technol- USA are currently undergoing a revival, with artists and creatives migrating to places such as Atlanta, Austin, Nashville and New Camping, hiking and non-com- Orleans. Finding a sense of belonging, they appreciate the slow- ogy. Fig 2: Original Abercrombie and Fitch er-paced lifestyle and unique culture and history of the American petitive outdoor activities drive this South, bringing their unbridled creativity to dynamise the area’ (WGSN, 2015) market’s product offer, resonating with Fig 1: Milan (WGSN) the consumer’s appreciation of nature and community’ (WGSN’s Sturch, K. (2014).

Folk: ‘The common people of a society or region considered as the representatives of a traditional way of life and especially as the originators or carriers of the cus- toms, beliefs, and arts that make up a distinctive culture: ‘Nature and the outdoors are one of the big inspirations in Milan this season, connecting with simi- -The Free Dictionary.com lar themes seen at Pitti Uomo. Fabrics (’ 102(WGSN trend forecast AW 15/16) Appendix 8 Fitch Concept Store floor plan

The store concepts will be strategically designed in a ‘straight plan’ (Kent,T and Omar, O.2003), which aims to draw customers through the store and to maximise exposure to the new product offering and the store’s differentiating features. In sharp contrast to the brands famously overstimulating, dark stores of the past (Hancock, J (2009), the light and spacious interiors will stimulate the customer whilst minimising confusion and making them feel at ease. Moreover, in order to attract both the female and male members of the target consumer group, the store design will not appear overtly masculine or feminine.

103 Appendix 9: Chelsea Girl to River Island- Rebranding Case study

An example of a fashion retailer which has undergone a successful rebrand is River Island, formally known as Chelsea Girl. Having struggled for a number of years, the brand acknowledged the changes in the fashion retail market, and altered their marketing mix accordingly. Following a trial run of 6 River Island stores around the UK, the company successfully attracted a number of customers, who were enticed by the new, revamped store format and product portfolio. Whilst this trial was not supposed to be rolled out nationwide, it was evident that such high demand for the new brand, and its modernised design meant that all original Chelsea Girl stores were gradually converted to River Island.

The brand is now making sales of around £839m, and has expanded into an array of product categories, collaborating with popular celebrities such as Rihanna, which helped boost overall sales (WGSN News.2014). What’s more, the brand has now capitalised on their original roots, by reintroducing a capsule collection of the Chelsea Girl range (Rushton, K 2011), which further reinforces the demand for heritage, in terms of achieving a desirable and authentic brand image (Beverland, M (2009.p92).

Sales after rebrand in 1988 (source: Greenwood, G.1993)

Year £m

1988 £210

1989 £220

1990 £240

Primary research- River Island flagship store

104 Appendix 10

Burberry case study http://www.aroots.org/IMG/ http://media.cleveland. jpg/emma-watson-wear- com/style_impact/photo/ Despite its contrasting market position, an example of a famous rebranding success story which ing-burberry-trench-coat.jpg burberry-trench-coat- must not be overlooked is that of Burberry. Established in England over 150 years ago, the brand jpg-85f38b1750a789fe_medi- originally sold a small selection of high quality outdoor attire. This remained the case until the um.jpg 1970’s when the brand became over exposed and, as stated by Aquino, J. (2011), was ‘at risk of being dismissed as frumpy and over-extended. It was even considered gangwear’.

The brand’s iconic check print became associated with ‘chavs’ in the 1990’s, which further de-val- ued its products and thus provoked a significant decline in sales. In an article in the International Journal of Retail & Distribution Management, Moore, C and Birtwistle G, (2004) maintain that at this point the brand had become “an outdated business with a fashion cachet of almost zero’.

However, following the appointment of Christopher Bailey as creative director in 2001, the brand managed to turn the tarnished brand image around, and thus re-established lost sources of brand equity. This was established through a winning combination of savvy product design, expansion into international markets, aspirational advertising campaigns, digital innovation and the endorsement of high-profile celebrities( Aquino, J. (2011). The brand also reintroduced and modernised the original Burberry trench coat, which is arguably now recognised as one of the most iconic and significant fashion garments in the world. By maintaining a suitable balance between traditional and contemporary, Burberry successfully developed a desirable product portfolio which evidently resonated with the modern consumer (Keller, K et al. . (2008:p669)

As expressed by Keller, K et al. . (2008:p669) ‘Burberry appeals to a very broad market, which is why it is doing so well. But with the great advertising campaigns and the cool models keep the Burberry very high end, appealing and desirable’.

In contrast, Abercrombie and Fitch have evidently neglected to celebrate their outdoor-inspired heritage, instead focusing on the Ivy league image to influence the direction of the brand. Whilst this may have proven profitable a decade ago, it is apparent that the modern consumer craves the authenticity, innovation and relevance which Burberry provides. Geczy, A and Karaminas, V (2012) maintain that successful reinvention of tiring brands, often involves ‘drawing on the qualitative values of their heritage and by replacing outdated values with a sleeker, more contemporary format.’, which reinforces the effectiveness of this strategy and could thus be the key to Abercrombie and Fitch’s reinvention.

Images of the orginal and modern Burberry trench coat and examples of the visually innovative Burberry stores.

105 Appendix 11 Press Release Introducing ...

Fitch

FOR IMMEDIATE RELEASE

ABERCROMBIE AND FITCH UNDERGOES A MAJOR TRANSFORMATION

USA, August 2016 - Abercrombie and Fitch is proud to introduce the beginnings of a new brand identity, ‘Fitch’.

Capitalising on the brand’s outdoor heritage origins, the newly named ‘Fitch’ will offer a charming new collection of premium outdoor wear. These new contemporary ranges mark a new beginning for the brand, and have already provoked considerable interest from influential celebrities and style leaders alike. This drastic transformation will be exhibited and trailed in four state of the art concept stores. These new, awe-inspiring retail spaces are infused with the theme of nature and aim to stimulate the customer, whilst providing them with a place of community, to relax and unwind, away from the chaos of urban life.

The Fitch concept stores will be positioned in four locations across America and will commence with an exclusive launch event at the New York flagship, where VIP guests such as Jennifer Lawrence and Ryan Reynolds will be entertained with collection previews and live music. Similar events will also be held in the new concept stores in Georgia, San Francisco and Santa Monica, where the new brand ambassador, Leah Jenner, will make an exclusive appearance. The West-Coast boho beauty expressed her enthusasiam for this reinvention stating: ‘I am honoured to be asked to be a part of this rebrand, I adore the new collections and I think people will identify with its new, more approachable and free-spirted ethos!’

Executive Chairman Arthur C. Martinez states; ‘We’re expecting great things from this transformation, we feel the new collections and revolutionary concept stores will have greater appeal to a broader market and will help to put the brand back on the map as a market leader’

For further information please contact: Public Relations Department Abercrombie & Fitch 614-283-6192 [email protected]

106 & other stories Appendix 12 Diesel Retailers using art and culture to drive footfall (Market Research)

Evidence suggests that there has been a rise in the number of retailers using art and culture to drive footfall (Saunter, L.2014). This strategy enables brands to create memorable shopping experiences, using gallery-inspired merchandising and artistic collaborations to achieve differentiation (see images to the right).

Anthropologie- Using art and culture to drive footfall (Saunter, L. (2014).

Anthropologie have tapped into this trend by incorporating art/craft within their stores, in order to capture the customers imagination and drive footfall. Through this use of craft (both in store and on their blog) the brand provides the customer with an interactive and memorable experience. In various locations such as New York, the brand have incorporated the work of local artists and locally based labels, thus tailoring their offering to appeal to the New York consumer (Hughes, A. 2012).

This strategy has proven successful, and, in relation to the BCG growth matrix (Lancaster, G and Massingham, L.2011P:478), the brand is evidently the ‘Cash Cow’ of the URBN INC label. According to Richard Hayne (Urban CEO) Anthropologie ‘brought in $1.68 billion of Urban’s $3.1 billion full-year revenue’ (cited by Mcgrath, M 2014). H&M Jeff Koons collaboration

‘Arts and crafts represent a principal component of socio-economic life and an integral element of the culture of every Arts and Crafts- The maker Community country’ (PR web. (2012). The demand for art and culture has also been evidenced through the rise in consumers using arts and crafts, which arguably evolved as a result of the 2008 recession. As consumer expenditure declined, people to achieved savings by making products themselves (PR web. (2012). Evidence suggests that the art and craft industry shows no sign of losing pace, as making objects ourselves reflects the economic, social and cultural values of the modern world, in which personalisation and individuality are becoming unquestionably prevalent.

According to reports by the Global Industry Analysts (PR web,2012), the US arts and crafts market was predicted to exceed $40 billion by 2015. This ‘maker community desire’ is also reflected in the UK, where, according to the UK Crafts Council (2015) the craft market annually generates nearly £3.4bn for the UK economy. These statistics accentuate the magnitude of this craft trend and how it is predicted to continue in future years as more and more consumers reject mass produced products in search for something more ‘one-of-a-kind’. This trend has been evidenced throughout retail stores, where brands such as Free People have capitalised on the ‘Maker communities’ by incorporating creativity and craft within their stores, overlooking the new technologies and innovation for a more back to basics approach.

Craft tips featured on the Athropolgie blog

https://cbsnewyork.files.wordpress.com/2011/08/anthropologie-facebook.jpg?w=225&h=300 Anthropologie Stoe interior 107 Appendix 13- Future recommendations

Going forward, the brand will the brand could continue broadening their domestic and international consumer base, using their re-established outdoor essence to further extend and diversify their product range, perhaps introducing stylish outdoor accessories and functional equipment (for camping and hiking etc)

Other recommendations include:

- Incorporate additional services (such as cafe’s and personal shopper services) within the new stores. - They may also consider further collaborations with additional style leaders and charities, in order to continue developing and enhancing their corporate social image. - Collaborating with outdoor festivals (such as Wanderlust and Saquash) may also be beneficial for the brand, and will provide further incentive to draw customers into store. - The brand could continue expanding its physical presence by opening stores in profitable locations such as airports, tapping into the global tourism boom and appealing to the millennial consumer’s nomadic tendencies. - Introduce a Fitch loyalty card to provide motivation to interact with the brand and to encourage brand loyalty. - Create a Fitch app to provide a new platform that will generate point of sale. This would be accessible for customers internationally and would offer the customer with maximum convinience. - Introduce a lower priced sub brand in order to appeal to a more price sensitive customer (consumer B). - Explore further collaborations, perhaps featuring up and coming outdoor brands which fit into the brand’s new aesthetic or building associations with the music industry.

108 Bibliography and References Books Aaker, D (2004). Brand Portfolio strategy. New York: Free Press. p83-91 Bay, R and Gill, P (2008). Why of the Buy. New York: Fairchild books. Beverland, M (2009). Building Brand Authenticity. London: Palgrave Macmillan. 15th Feb 2015. Shimp, T (2010). Advertising Promotion and Other Aspects of Integrated Marketing Communications. Canada: Cengage Learning. p254 Chaffey, D (2012). Digital Marketing- Strategy, Implementation and Practice. 5th ed. Essex: Pearson. Chernev, A (2012) Strategic Marketing Management, Cerebellum Press Clow, K and James, K (2014). Essentials of Marketing Research. London: Sage publications Ltd.. Davis, A (2013) Promotional Cultures. Cambridge:Polity. P83-87 Fromm, J and Garton, C (2013). Marketing to Millennials. New York: American Management Association. p. Gad, T (2001). 4D Branding . Sweden: Bookhouse Publishing. .. Geczy, A and Karaminas, V (2012) Fashion and Art. London. Bloomsbury Hancock, J (2009). Brand Story. New York: Fairchild Books. p89-107. Hines and Bruce (2007)- Fashion Marketing, Contemporary issues. Hudsen, B et al. (2009). Cool Brands. London: Superbrands (UK) Ltd. Jackson and Shaw (2009) Mastering Fashion Marketing.London. Palgrave Macmillan. Keller, K et al. (2008). Managing Brands over time. In: . Strategic brand management. Harlow: Pearson. p653-694. Keller, K et al. (2012) Strategic Brand Management. Pearson. Essex. Kent, T and Omar, O (2003), Retailing.London: Palgrave Macmillan. Kotler and Keller (2012). Marketing Management. 14th ed. Essex: Pearson Kotler, P (2012). Principles of Marketing. 15th ed. Essex: Pearson. Lancaster, G and Massingham, L (2011). Essentials of marketing management. Abingdon: Routlege. P Lynch, R (2012). Strategic Management. 6th ed. Harlow: Pearson. Musher, L (2010). Retail Design. London. Bloomsbury. Polonsky, M (1999). Greener Marketing:A responsible approach to business. Sheffield: Greenleaf Publishing ltd. Posner, H (2011). Marketing Fashion. London: Laurence King Publishing. Rath, P et al (2015). The Why of the Buy. 2nd ed. London: Bloomsbury. Raymond, M (2010) The trendforecasters hand book. London.Laurence King Riewoldt, O (2000). Retail Design. London: Laurence and King Publishing. p. Saviolo, S and Marazza, A (2013). Lifestyle Brands- A guide to aspirational marketing. London: Palgrave Macmillan. P Stone, M et al.. (2004). Consumer insight and market research. In: . Consumer Insight. London: Kogan Page Limited. p111-133 Wood, M (2013). Essential Guide To Marketing Planning. 3rd ed. Harlow: Pearson. Yarrow, K and O'Donnell, J (2009). Gen BuY. San Fransisco: Jossey-Bass. Academic Journals Andrews, M and Kim, D (2007),"Revitalising suffering multinational brands: an empirical study",International Marketing Review, Vol. 24 Iss 3 pp. 350 – 372 Bolton, R. (2013). Understanding Generation Y and their use of social media: a review and research agenda. Journal of Service Management. 24 (3), p245-267. Bryman, A. (2006). Integrating quantitative and qualitative research: how is it done. Qualitative Research. 6 (1), p97-113. Choi, H et al. (2014). The Role of Fashion Brand Authenticity in Product Management: A hollistic approach . Product Development & Management Association. 1 (1), p Das, G et al. (2012),"Impact of retailer personality on consumer-based retailer equity”, Asia Pacific Journal of Marketing and Logistics, Vol. 24 Iss 4 pp. 619 - 639 Dias, L. (2003). Generational buying motivations for fashion. Journal of Fashion Marketing and Management. 7 (1), p78-86. Ewing, M. et al. (1995),"Renaissance: a case study in brand revitalization and strategic realignment", Journal of Product & Brand Management, Vol. 4 Iss 3 pp. 19 – 26 Greenwood, G. (1993). River Island Clothing Co. A case study on changing an image. International journal of retail and distribution managment. 21 (3), p60-64. Gurau, C. (2012). A life stage analysis of consumer loyalty profile: comparing Generation X and Millennial consumers. Journal of Consumer Marketing. 29 (2), p103-113. Hsieh, A and Li, C (2008),"The moderating effect of brand image on public relations perception and customer loyalty", Marketing Intelligence & Planning, Vol. 26 Iss 1 pp. 26 - 42 Hulten, B. (2010). Sensory marketing: the multi-sensory brand-experience concept. European Business Review. 23 (3), p256-273. Ilaria, V and Codeluppi, B (2013),"Consumption practices of fast fashion products: a consumer based approach", Journal of Fashion Marketing and Management: An International Journal, Vol. 17 Iss 2 pp. 206 - 224 Jahn, B. (2012). How to transform consumers into fans of your brand. Journal of Service Management. 23 (3), p344-361. Jin Ma, Y and Niehm, L (2006),"Service expectations of older generation Y customers", Managing Service Quality: An International Journal, Vol. 16 Iss 6 pp. 620 - 640 Kim, J. (2012). Human factors in retail environments: a review. International Journal of Retail & Distribution Management. 40 (11), p818-841. Lantos, G (2014) "Marketing to Millennials: Reach the Largest and Most Influential Generation of Consumers Ever", Journal of Consumer Marketing, Vol. 31 Iss: 5, pp.401 - 403 Lazarevic,V (2012),”Encouraging brand loyalty in fickle generation Y consumers”, Young Consumers, Vol. 13 Iss 1 pp. 45 – 61 Lu, L etc al.. (2013). Green marketing: what the Millennials buy. JOURNAL OF BUSINESS STRATEGY. 34 (6), p3-10. Manlow, V. (2013). Form and function of luxury flagships- An international exploratory study of the meaning of the flagship store for managers and customers. Journal of Fashion Marketing and Management. 17 (1), p49-64. McCormick, H and Livett, C. (2012). Analysing the influence of the presentation of fashion garments on young consumers’ online behaviour. Journal of Fashion Marketing and Management. 16 (1), p21-41. Moore, C and Birtwistle G, (2004),"The Burberry business model: creating an international luxury fashion brand", International Journal of Retail & Distribution Management, Vol. 32 Iss 8 pp. 412 - 422 Moore, C. (2000). Brands without boundaries. European Journal of Marketing. 34 (8), p919-937. Moore, M. (2012). Interactive media usage among millennial consumers. Journal of Consumer Marketing. 29 (6), p436-444. Munthree, S and Bick, G. (2006). A framework for brand revitalization through an upscale line extension. Journal of Product & Brand Management. 15 (3), p157–167. Muzellec, L and Lambkin, M. (2006). Corporate rebranding: destroying, transferring or creating brand equity?. European Journal of Marketing. 40 (7/8), p803-804. Ogle, J et al (2014),"Segmenting the teen girl apparel market: differences in fashion involvement, materialism and social responsibility", Young Consumers, Vol. 15 Iss 2 pp. 153 - 166 Ross, J and Harradine, R (2010),"Value brands: cheap or trendy?", Journal of Fashion Marketing and Management: An International Journal, Vol. 14 Iss 3 pp. 350 – 366 Ruckman,J (2005),"The application of a layered system to the marketing of outdoor clothing", Journal of Fashion Marketing and Management: An International Journal, Vol. 9 Iss 1 pp. 122 - 129 Runyan, R (2013),"What is cool? Operationalizing the construct in an apparel context”, Journal of Fashion Marketing and Management: An International Journal, Vol. 17 Iss 3 pp.322 - 340 Valentine, D and Powers, T. (2013). Generation Y values and lifestyle segments. Journal of Consumer Marketing. 30 (7), p597–606. Wirtz, J (2013),"Managing brands and customer engagement in online brand communities", Journal of Service Management, Vol. 24 Iss 3 pp. 223 - 244

109 Websites Abercrombie and Fitch Co. (2014). Abercrombie and Fitch Annual Report. Available: http://www.sec.gov/Archives/edgar/data/1018840/000101884014000033/anf-20140201x10k.htm. Last accessed 12th Jan 2015. Adams, E (2015) http://racked.com/archives/2015/01/13/tracking-abercrombies-plan-to-get-cool-again.php Armstrong, S. (2014). Barbour: From farmers and fishermen to fashion royalty. Available: http://www.bbc.co.uk/news/uk-england-tyne-27678879. Last accessed 5th April 2015. AT Kearney. (2015). On Solid Ground: Brick-and-Mortar Is the Foundation of Omnichannel Retailing. Available: http://www.atkearney.com/documents/10192/4683364/On+Solid+Ground.pdf/f96d82ce-e40c-450d-97bb-884b017f4cd7. Last accessed 28th Feb 2015 BBC News. (2014). Is this Generation Right?. Available: http://www.bbc.co.uk/news/magazine-27865991. Last accessed 11th Feb 2015. BBC News. (2015). UK inflation falls to 0.5% in December. Available: http://www.bbc.co.uk/news/business-30794673. Last accessed 13th Jan 2015. Berman, J. (2014). Abercrombie To Cut Prices As Downward Spiral Continues. Available: http://www.huffingtonpost.com/2014/02/26/abercrombie-prices_n_4859883.html. Last accessed 16th Jan 2015 Betts, A. (2014). The UK and US digital markets: consumer culture, differences and commonality. Available: https://econsultancy.com/blog/64508-the-uk-and-us-digital-markets-consumer-culture-differences-and-commonality/. Last accessed 28th Feb 2015 Bhasin, K. (2014). Teens Love Brandy Melville, A Fashion Brand That Sells Only One Tiny Size. Available: http://www.huffingtonpost.com/2014/10/14/brandy-melville_n_5978626.html. Last accessed 9th March 2015. Bilton, R. (2015). Is it time for millennial publishers to go specific?. Available: http://digiday.com/publishers/is-it-time-for-millennial-publishers-to-go-specific/. Last accessed 6th March 2015. Chaffey, D. (2013). Marketing Trends for 2014 and into 2015. Available: http://www.smartinsights.com/managing-digital-marketing/marketing-innovation/marketing-trends-2014/. Last accessed 15th Jan 2015 Crafts Council (2015) Research Documents. Available at: http://www.craftscouncil.org.uk/what-we-do/research-reports/. Last accessed 6th March 2015 Cushman and Wakefield. (2014). Marketbeat Retail Snapshot- San Fransisco CA. Available: http://www.cushmanwakefield.com/~/media/marketbeat/2015/02/SanFrancisco_AMERICAS_MarketBeat_Retail_Q42014.pdf. Last accessed 20th April 2015. Deloitte. (2015). The Deloitte Millennial Survey 2015. Available: http://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html. Last accessed 10t Feb 2015. Dumaine, B (2012) Patagonia founder Yvon Chouinard believes less is more with products. Available at: http://fortune.com/2012/08/13/patagonia-founder-yvon-chouinard-believes-less-is-more-with-products/. Last accessed 21st Feb 2015. Fromm, J. (2014). Why Idea Brands Win With Millennials. Available: http://www.millennialmarketing.com/2013/09/why-idea-brands-win-with-millennials/. Last accessed 8th Jan 2 Grinspan, I. (2014). A&F Quarterly: The Story of Abercrombie's Highbrow, Controversial, Sort of Amazing Magalog. Available: http://racked.com/archives/2014/10/01/a-and-f-quarterly-abercrombie-magazine.php. Last accessed 17th Jan 2015. Hauser & Wirth. (2014). Pipilotti Rist Worry Will Vanish. Available: http://www.hauserwirth.com/exhibitions/2302/pipilotti-rist-worry-will-vanish/view/. Last accessed 20th Feb 2015. Ipsos Retail Performance. (2015). Ipsos Retail Performance. Available: http://www.ipsos-retailperformance.com/resources/blog/retailers-enjoy-nationwide-footfall-growth-first-time-decade/. Last accessed 12th Feb 2015. KPMG (2013) Tech innovation leads to a brighter future Available at: http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Documents/retail-outlook-survey.pdf. Last accessed 17th April 2015 Mattin, D (2015). 10 consumer trends for 2015. Available: http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=05537550-2167-48c3-a337-09664699cf87&CID=A103563&PUB=WARC-TRENDS. Last accessed 21st Jan 2015. McQuivey, J. (2013). Digital Disruption: Unleashing The Next Wave Of Innovation. Available: http://solutions.forrester.com/Global/FileLib/webinars/Digital_Disruption_JM.pdf. Last accessed 15th Jan 2015 Mintel. (2015). Outdoor Enthusiasts - US - February 2015. Available: http://store.mintel.com/outdoor-enthusiasts-us-february-2015. Last accessed 11th April. Mintel. (2014). Mintel identifies four key UK consumer trends for 2015. Available: http://www.mintel.com/press-centre/social-and-lifestyle/mintel-identifies-four-key-uk-consumer-trends-for-2015. Last accessed 8th Jan 2015. ONS (2014) Statistical bulletin: Internet Access – Households and Individuals 2014 available at: http://www.ons.gov.uk/ons/rel/rdit2/internet-access---households-and-individuals/2014/stb-ia-2014.html?format=print. Last accessed 23rd Jan 2015 ONS. (2014). Births in England and Wales by Characteristics of Mother 1, 2013. Available: http://www.ons.gov.uk/ons/rel/vsob1/birth-summary-tables--england-and-wales/2013/stb-births-in-england-and-wales-2013.html. Last accessed 29th Jan 2015. Ortman, J et al.. (2014). An Aging Nation: The Older Population in the United States. Available: http://www.census.gov/prod/2014pubs/p25-1140.pdf. Last accessed 27th March 2015. Parker, K and Wang, W. (2014). Record Share of Americans Have Never Married. Available: http://www.pewsocialtrends.org/2014/09/24/record-share-of-americans-have-never-married/. Last accessed 1st March 2015. Pathak, S (2015) Do we need millennial-focused ad agencies? Available at: http://digiday.com/agencies/need-millennial-focused-ad-agencies/. Last accessed 8th Feb 2015 PR web. (2012). The US Market for Arts and Crafts to Exceed US$40 Billion by 2015, According to New Report by Global Industry Analysts, Inc. Available: http://www.prweb.com/releases/arts_and_crafts_stores/handicrafts_fine_arts/prweb9092143.htm. Last accessed 6th March 2015. Price, L. (2015). What the Tech World Doesn't Understand About Fashion. Available: http://www.racked.com/2015/2/16/8039853/apple-watch-google-glass-fashion-tech. Last accessed 17th Feb 2015. PVH. (2015). Our brands. Available: https://www.pvh.com/brands.aspx. Last accessed 13th March 2015 Rogers, K. (2015). Strong dollar puts pressure on ‘Made in USA’ manufacturers. Available: http://www.cnbc.com/id/102553370. Last accessed 19th April 2015. Segran, E. (2015). The Fall of the Hipster Brand: Inside the Decline of American Apparel and Urban Outfitters. Available: http://www.racked.com/2015/3/3/8134987/american-apparel-urban-outfitters-hipster-brands. Last accessed 6th March 2015. Shankman, S. (2015). 2015 Trend: Travel Brands Reimagine Themselves as Lifestyle Connoisseurs. Available: http://skift.com/2015/02/04/2015-trend-travel-brands-reimagine-themselves-as-lifestyle-connoisseurs/. Last accessed 27th April 2015 Sherman, L. (2014). There’s No Such Thing as Overexposure in Fashion. Available: http://www.style.com/culture/entertainment/2014/overexposure-in-fashion-karl-lagerfeld-pharrell-cara-delevingne?utm_source=Subscribers&utm_campaign=8c915d9ead-&utm_medium=email&utm_term=0_d2191372b3-8. Last accessed 15th Jan 2015. Statista. (2015). Number of smartphone users in the U.S. from 2010 to 2018 (in millions) . Available: http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/. Last accessed 27th April 2015. Statista. (2014). Statistics and Market Data about E-commerce. Available: http://www.statista.com/markets/413/e-commerce/. Last accessed 21st Oct 2014. The European Outdoor Group. (2014). Overview of the European outdoor market. Available: http://www.europeanoutdoorgroup.com/research/current-project/overview-of-the-european-outdoor-market. Last accessed 12th March 2015 Turner, M. (2014). Lifestyle Branding: The Success in Selling An Image. Available: http://www.businessonmarketst.com/lifestyle-branding/. Last accessed 8th Jan 2015. USTR. (2015). The President’s Trade Agenda. Available: https://ustr.gov/sites/default/files/2015-Presidents-Trade-Agenda_2.pdf. Last accessed 19th April 2015. Wicksteed, T. (2013). So you want to be a lifestyle brand?. Available: http://www.pearlfisher.com/live-item/lifestyle-brand/. Last accessed 8th Jan 2015. Young and Rubicam (2014) Available at: http://emea.yr.com/ygo.pdf. Last accessed 23rd March 2015

Forbes Casserly, M. (2012). Keeping Up With The Kardashians 2015: E! Pays $40 Million For Three More Years. Available: http://www.forbes.com/sites/meghancasserly/2012/04/24/keeping-up-with-the-kardashians-2015-e-pays-40-million-for-three-more-years/. Last accessed 4th April 2015. Chernev, A. (2011). Pros and Cons: Should You Embrace Lifestyle Branding?. Available: http://adage.com/article/cmo-strategy/marketers-puma-embrace-lifestyle-branding/228028/. Last accessed 25th Feb 2015. Chernev, A. (2011). Why Facebook Is A Threat To Lifestyle Brands. Available: http://www.forbes.com/sites/onmarketing/2011/08/11/why-facebook-is-a-threat-to-lifestyle-brands/. Last accessed 7th Jan 2014. Dooley, R (2013) The Perverse Brilliance Of Abercrombie & Fitch's CEO. Available at: http://www.forbes.com/sites/rogerdooley/2013/05/16/abercrombie-ceo/. Last accessed 24th Jan 2015 Faw, L. (2012). Meet The Millennial 1%: Young, Rich, And Redefining Luxury. Available: http://www.forbes.com/sites/larissafaw/2012/10/02/meet-the-millennial-1-young-rich-and-redefining-luxury/. Last accessed 11th Nov 2014 Forbes. (2014). Abercrombie & Fitch's Fall Slows Down; Q1 Results Beat Estimates. Available: http://www.forbes.com/sites/greatspeculations/2014/05/30/abercrombie-fitchs-fall-slows-down-q1-results-beat-estimates/. Last accessed 16th Jan 2015 Loeb, W (2014). Boom! Abercrombie & Fitch Drops Its Logo. Available: http://www.forbes.com/sites/walterloeb/2014/09/02/boom-abercrombie-fitch-drops-its-logo/. Last accessed 26th Jan 2015. Maheshwari, S (2012) At Abercrombie & Fitch, Sex No Longer Sells. http://www.businessweek.com/articles/2012-08-30/at-abercrombie-and-fitch-sex-no-longer-sells Mcgrath, M (2014) Anthropologie And Free People Brands Lift Urban Outfitters Profit And Revenue. Available at: http://www.forbes.com/sites/maggiemcgrath/2014/03/10/anthropologie-and-free-people-brands-lift-urban-outfitters-profit-and-revenue/ Petro, G (2013) Millennial Engagement And Loyalty -- Make Them Part Of The Process http://www.forbes.com/sites/gregpetro/2013/03/21/millennial-engagement-and-loyalty-make-them-part-of-the-process/ Pinsent Masons. (2014). Lifestyle brands can grow significantly in next five years if they address international expansion challenges, says report. Available: http://www.out-law.com/en/articles/2014/june/lifestyle-brands-can-grow-significantly-in-next-five-years-if-they-address-international-expansion-challenges-says- report/. Last accessed 7th Jan 2014. Rosenblum, P. (2015). Wet Seal Whipped: Expect More Casualties As Fast Fashion Retailers Take Over Teen Market. Available: http://www.forbes.com/sites/paularosenblum/2015/01/20/fast-fashion-retailers-are-taking-over-the-teen-market/?utm_source=Subscribers&utm_campaign=215b32f9f3-&utm_medium=e- mail&utm_term=0_d2191372b3-215. Last accessed 21st Jan 2015. Rupp, L (2014) Modesty Is the New Abercrombie Available: http://www.businessweek.com/articles/2014-05-22/abercrombie-and-fitch-tries-to-win-teens-back-from-online-retail. Last accessed 16th January. Rupp, L. (2014). Abercrombie’s Next CEO Needs to Revamp Outdated Brand, Again. Available: http://www.bloomberg.com/news/2014-12-10/abercrombie-s-next-ceo-will-have-to-revamp-outdated-brand-again.html. Last accessed 6th January. Spenner, P. (2014). Inside the Millennial Mind: The Do's & Don'ts of Marketing to this Powerful Generation. Available: http://www.forbes.com/sites/patrickspenner/2014/04/16/inside-the-millennial-mind-the-dos-donts-of-marketing-to-this-powerful-generation-3/. Last accessed 29th Jan 2015. The Economist. (2014). Marques for millennials. Available: http://www.economist.com/news/special-report/21635762-young-people-choose-and-buy-differently-marques-millennials?utm_source=Subscribers&utm_campaign=01d2635740-&utm_medium=email&utm_term=0_d2191372b3. Last accessed 11th Dec 2014. Trefis Team (2014) Where Will Urban Outfitters' Expansion Come From? Available at: http://www.forbes.com/sites/greatspeculations/2014/04/08/where-will-urban-outfitters-expansion-come-from/. Last Accessed 18th March 2015 Trefis Team (2014) Will New Brand President Make A Difference For Abercrombie & Fitch? Available at: http://www.forbes.com/sites/greatspeculations/2014/07/10/will-new-brand-president-make-a-difference-for-abercrombie-fitch/

110 Business of Fashion

Abnett, K and Amed, I (2015). Inditex: Agile Fashion Force Available at: http://www.businessoffashion.com/community/voices/discussions/can-fashion-industry-become-sustainable#/inditex-agile-fashion-force. Last accessed 31st March 2015 Abnett, K. (2015). Do fashion trends still exist?. Available: http://www.businessoffashion.com/2015/01/fashion-trends-still-exist.html?utm_source=Subscribers&utm_campaign=33e9064dca-&utm_medium=email&utm_term=0_d2191372b3-33e9064dca-417422429. Last accessed 12th Jan 2015. Available: http://www.businessoffashion.com/2014/11/can-teen-retailers-turn-things-around.html?utm_source=Subscribers&utm_campaign=752a9974c8-&utm_medium=email&utm_term=0_d2191372b3-752a9974c8-416928473. Last Accessed 8th Nov 2014 Bedat, M and Darabi, S. (2014). Watch Out for the millennials. Available: http://www.businessoffashion.com/2014/04/op-ed-watch-millennials.html. Last accessed 23rd Jan 2015. Bloomberg. (2015). H&M Tops Profit Estimates, Plans 400 New Stores. Available: http://www.businessoffashion.com/2015/01/hm-fourth-quarter-net-income-tops-estimates-new-stores.html. Last accessed 29th Jan 2015. BOF Team. (2013). The Basics | Part 8 – Marketing. Available: http://www.businessoffashion.com/2013/07/the-basics-part-8-marketing.html. Last accessed 8th Jan 2015. BOF team. (2014). Feeding the Feed. Available: http://www.businessoffashion.com/2014/11/feeding-feed.html?utm_source=Subscribers&utm_campaign=9aa8ed49a5-&utm_medium=email&utm_term=0_d2191372b3-9aa8ed49a5-417422429. Last accessed 18th Nov 2014. Business of Fashion. (2013). Op-Ed | Fast Fashion Winners and Losers. Available: As stated by ‘Profits at Zara are up to four times higher than other apparel retailers. (Abnett, K and Amed, I (2015).. Last accessed 2015 Chen, A. (2014). Abercrombie & Fitch Sales Plunge 12%. Available: http://online.wsj.com/articles/abercrombie-sales-drop-much-more-than-expected-1415366958. Last accessed 16th Nov 2014.1 Cheng, A. (2014). Abercrombie & Fitch cut to neutral; price target almost halved . Available: http://www.marketwatch.com/story/abercrombie-fitch-cut-to-neutral-price-target-almost-halved-2014-11-14. Last accessed 11th Nov 2014. Faw, L. (2012). Meet The Millennial 1%: Young, Rich, And Redefining Luxury. Available: http://www.forbes.com/sites/larissafaw/2012/10/02/meet-the-millennial-1-young-rich-and-redefining-luxury/. Last accessed 11th Nov 2014 Harvard Business Review Staff. (2011). Retail isnt broken- stores are. Available: https://hbr.org/2011/12/retail-isnt-broken-stores-are. Last accessed 26th Jan 2015 Keeler, S and Taylor, P . (2015). The Millennials. Available: http://www.pewresearch.org/2009/12/10/the-millennials/. Last accessed 23rd March 201 Lepore, M . (2011). ABERCROMBIE: How A Hunting And Fishing Store Became A Sex-Infused Teenybop Legend. Available: http://www.businessinsider.com/abercrombie-fitch-history-2011-4?op=1&IR=T. Last accessed 13th Jan 2015 Lopez, L and Peterson, H. (2014). Abercrombie & Fitch Is Getting Stomped. Available: http://uk.businessinsider.com/abercrombie-and-fitch-is-getting-stomped-2014-11?r=US. Last accessed 16th Nov 2014. Mallevay, P. (2014). All eyes on America. Available: http://www.businessoffashion.com/2014/09/market-pulse-eyes-america.html. Last accessed 23rd Jan 2015. Marx, D. (2010). In Tokyo, Abercrombie misses it's mark. Available: http://www.businessoffashion.com/2010/02/in-tokyo-abercrombie-misses-its-mark.html. Last accessed 20th December 14. Mellery-Pratt, R. (2014) Can Teen Retailers Turn things around? Neel, M. (2014). Op-Ed How to save Abercrombie. Available: http://www.businessoffashion.com/2014/05/op-ed-save-abercrombie.html. Last accessed 8th Jan 2015. O'Connor, C. (2015). Savvy managers are turning around Tommy Hilfiger. Available: Hilfiger’s business imploded amid a sea of overexposure and baggy, logoed merchandise that fast fell out of fashion. Read more: http://forbesindia.com/article/cross-border/savvy-managers-are-breaking. Last accessed 14th Jan 2015. Shields, M. (2015). Nike and AKQA Turn People’s Running Data Into 100,000 Unique Videos. Available: source: http://blogs.wsj.com/cmo/2015/01/07/nike-and-akqa-turn-peoples-running-data-into-100000-unique-videos/. Last accessed 2nd Feb 2015. Stephens, D (2015) The Future of Retail is the End of Wholesale http://www.businessoffashion.com/2015/02/future-retail-end-wholesale.html. Last accessed 7th Feb 2015. Stoppard, L (2015) Are fashion ads now made entirely for the Web rather than print? Available at: http://www.businessoffashion.com/2015/01/op-ed-picture-worth-million-likes.html Last accessed 19th Jan 2015. Temin, D. (2013). How A CEO Can Wreck A Brand In One Interview: Lessons From Abercrombie & Fitch Vs. Dove. Available: http://www.forbes.com/sites/daviatemin/2013/05/13/abercrombie-and-fitch-v-dove-or-how-a-ceo-can-wreck-a-brand-in-1-interview-7-years-ago/. Last accessed 14th Nov 2013. Westnedge, H. (2013). Fashion players must drive better online conversion rates. Available: http://www.verdictretail.com/fashion-players-must-drive-better-online-conversion-rates/. Last accessed 7th Jan 2015

Euromonitor (Passport)

Cazin, N (2014) Time is Ticking for Troubled Teen Fashion Rivals. Available at http://portal.euromonitor.com/. Last accessed 23rd Feb 2015 Euromonitor (2011) Make Way for Generation Z: Marketing to Today’s Tweens and Teens. Available at http://www.euromonitor.com/make-way-for-generation-z-marketing-to-todays-tweens-and-teens/report. Last accessed 23rd Feb 2015 Euromonitor (2013) Consumer Lifestyles in the US Euromonitor (2014) ABERCROMBIE & FITCH CO IN APPAREL AND FOOTWEAR (WORLD) Euromonitor (2014) American Consumers in 2020: A Look into the Future. Available at: http://www.portal.euromonitor.com/portal/analysis/tab. Last accessed 28th Feb 2015 Euromonitor (2014) Apparel and Footwear in the United Kingdom Industry Overview. Available at http://www.portal.euromonitor.com/portal/analysis/tab Euromonitor (2014) Apparel and Footwear Specialist Retailers in the US. Available: http://www.portal.euromonitor.com/portal/resultslist/sortby. Last accessed 24th Feb 2015 Euromonitor (2014) PVH Corp in Apparel and Footwear (World) Euromonitor (2014) Womenswear in the United Kingdom. Available at: http://www.portal.euromonitor.com/portal/analysis/tab Euromonitor. (2015). USA: Country Pulse. Available: http://www.portal.euromonitor.com/portal/analysis/tab. Last accessed 2nd March 2015. http://www.portal.euromonitor.com/portal/analysis/tab Kunde, A (2013) Abercrombie & Fitch Turns to Product to Appeal to the Hashtag Generation. Available at: http://www.portal.euromonitor.com/portal/analysis/tab. Kunde, A (2013) Substance Over Style: Product Holds the Key to Abercrombie & Fitch’s Future. Available at: http://www.portal.euromonitor.com/portal/analysis/tab Walker, R. (2013). J Crew Could be Positioning for a Sale as Affordable Luxury Booms. Available: http://www.portal.euromonitor.com/portal/analysis/tab. Last accessed 23rd Jan 2015.

Trade Publications:

Retail Week: Baldwin, C. (2015). American Eagle outpaces US teen fashion rival Abercrombie & Fitch. Available: http://www.retail-week.com/topics/international/american-eagle-outpaces-us-teen-fashion-rival-abercrombie-and-fitch/5072770.article. Last accessed 12th March 2015. Berwin, L (2010) The Great Outdoors. Retail Week. P20-22 Doherty, K. (2014). Innovate to survive. Retail Week. . p21 Heywood, L. (2014). Analysis: How to prepare for the next generation of shoppers. Available: http://www.retail-week.com/technology/analysis-how-to-prepare-for-the-next-generation-of-shoppers/5065973.article. Last accessed 12th Nov 2014. Hughes, N, 2015) Retail Week Live: Bringing retail’s biggest names and innovations together p37 Massey, W (2014) Did you know... that Whistles has reported its first profit since the 2008 management buy-in? Available at :http://www.retail-week.com/city-and-finance/retail-week-knowledge-bank/did-you-know-that-whistles-has-reported-its-first-profit-since-the-2008-management-buy-in/5062560.article. Last accessed 27th Jan 2015 Retail Week (2015) Monsoon to install tablet tills- pg 29 Rushton, K (2011) River Island to revive Chelsea Girl brand. Available at: http://www.retail-week.com/sectors/fashion/river-island-to-revive-chelsea-girl-brand/5023449.article Westnedge, H (2015)– How will retail play out in 2015?p16 Williams, S (2015) Etailers can offer Customers more through stores. P32

Drapers Geoghegan, J. (2015). We’re ready to float, says New Look boss. Drapers. P5 Knowles, J (2015) All over the shop. P22 Sheilds, A (2010) Whistles poised to return to the black Available at: http://www.drapersonline.com/news/multiples/news/whistles-poised-to-return-to-the-black/5018075.article#.VMXooy52OQc. Last accessed 27th Jan 2015 Spybey, K. (2015). Lights, camera, transaction. Drapers.p11

111 Trend Forecasting Agencies LS:N Global Bate, M (2014) Stranger Liaisons. Available at: https://www.lsnglobal.com/micro-trends/article/16680/stranger-liaisons. Last accessed 3rd March 2015 Cooke, S and Buchanan, V (2014) The Flat Age Society. Available at: https://www.lsnglobal.com/macro-trends/article/15379/the-flat-age-society-1. Last accessed 6th March 2015 Cooke, S et al.. (2014). Awakening Tech. Available: ttps://www.lsnglobal.com/macro-trends/article/16546/awakening-tech. Last Accessed: 3rd March 2015 Cooke, S. (2014). Millennials and Baby Boomers focus on healthy ageing. Available: https://www.lsnglobal.com/behaviours/article/15769/millennials-and-baby-boomers-focus-on-healthy-ageing. Last accessed 10th feb 2015. Firth, P (2014) Made in the USA movement gathers strength. Available: https://www.lsnglobal.com/news/article/16110/made-in-the-usa-movement-gathers-strength. Last accessed 23rd Feb 2015 Firth, P and Buchanan, V (2014) Flawed Fashions . Available: https://www.lsnglobal.com/macro-trends/article/4595/the-tomorrow-store Last accessed 9th Jan 2015. Firth, P and Buchanan, V. (2014). The Sharded Self. Available: https://www.lsnglobal.com. Last accessed 9th Jan 2015. Jordan, A (2014). Half of millennials see postitive impact of social media on day to day interactions. Available at: https://www.lsnglobal.com/behaviours/article/16552/half-of-millennials-see-positive-impact-of-social-media-on-day-to-day-interactions. Last accessed 1st Feb 2015 Jordan, A. (2015). MILLENNIALS WILLING TO PAY A PREMIUM FOR ECO-FRIENDLY PACKAGING. Available: https://www.lsnglobal.com/behaviours/article/17043/millennials-willing-to-pay-a-premium-for-eco-friendly-packaging. Last accessed 4th Feb 2015. Jordan, A. (2015). SHARP RISE IN VIDEO POSTS ON FACEBOOK MARKS SHIFT TOWARDS VISUAL NEWSFEEDS. Available: https://www.lsnglobal.com/news/article/16974/sharp-rise-in-video-posts-on-facebook-marks-shift-towards-visual-newsfeeds. Last accessed 4th Jan 2015. Jordan, A. (2015). Zen den: Kiss your worries goodbye at artist’s sensory exhibition. Available: https://www.lsnglobal.com/seed/article/16957/zen-den-kiss-your-worries-goodbye-at-artist-s-sensory-exhibition. Last accessed 20th Feb 2015. LSN Global (2012) The New Sublimity. Available at: https://www.lsnglobal.com/tag/New+Sublimity. Last accessed 20th Feb 2015 Lsn Global (2014) The Polarity Paradox. Available at: https://www.lsnglobal.com/seed/article/15406/the-polarity-paradox-the-new-age-of-extremes. Last accessed 22nd Feb 2015 Manthorpe, R and Buchanan, V (2014) Dust. Available at: https://www.lsnglobal.com/tag/Dust+Redux. Last accessed 3rd March 2015 Manthorpe, R and Maiki, J (2015) Vishnu Singh: 10 hot consumer trends for 2015. Available at: https://www.lsnglobal.com/tag/Ericsson+ConsumerLab. Last accessed 18th March 2015 Mansfield, N (2014) Why brands need purpos. Available at: https://www.lsnglobal.com/tag/Meaningful+brands. Last accessed 23rd March 2015 McCarthy, M. (2015). Millennials take a different approach in thier pursuit of happiness. Available: https://www.lsnglobal.com/. Last accessed 9th Jan 2015. PSFK Labs. (2014). How Brick-and-Mortar Stores Can Build Community [Future of Retail]. Available: http://www.psfk.com/2014/11/retail-2015-be-the-hub.html. Last accessed 9th Jan 2015 Rees, T and Bishop, A. (2014). Airport Retail. Available: https://www.lsnglobal.com/markets/article/15685/airport-retail. Last accessed 21st Feb 2015. Reyner, M and Ellerby, J. (2010). Just Jeans. Available: https://www.lsnglobal.com/innovate/article/2043/just-jeans. Last accessed 11th Feb 2015. Robinson, H and Maciejowska, K (2013) Emotional Technology Robinson, H et al.. (2012). Millennial Hotels. Available: http://staging.lsnglobal.com/trends/view/5631. Last accessed 10th Feb 2015. Ross, C (2012) MILLENNIALS ARE THE MOST INFLUENTIAL GENERATION. Available at: https://www.lsnglobal.com/behaviours/article/6806/millennials-are-the-most-influential-generation. Last accessed 28th Jan 2015 Saw, M (2009) Available: http://staging.lsnglobal.com/subscribe/. Accessed 1st March 2015 Summerton, D (2014) Contemplative space: Hotel reflects simple values. Available at: https://www.lsnglobal.com/seed/article/15513/contemplative-space-hotel-reflects-simple-values. Last accessed 20th Feb 2015 Szymanska, A (2014) ESCAPIST E-JOURNALS- HTTPS://WWW.LSNGLOBAL.COM/MICRO-TRENDS/ARTICLE/16020/ESCAPIST-E-JOURNALS US Census Bureau. (2011). Teens: USA. Available: https://www.lsnglobal.com/markets/article/3118/teens-usa. Last accessed 23rd Feb 2015. Walker, D (2014) MILLENNIALS SHOPPING HABITS DICTATED BY FAUXSUMERISM. Available at: https://www.lsnglobal.com/behaviours/article/15632/millennials-shopping-habits-dictated-by-fauxsumerism Walker, D and Buchanan (2015) ZONED-OUT SPACES Available at: https://www.lsnglobal.com/micro-trends/article/17130/zoned-out-spaces. Last Accessed 17th March 2015 Wallman (2012) Catherine Mayer : The age of agelessness. Available at: https://www.lsnglobal.com/the-big-idea/article/5765/catherine-mayer-the-age-of-agelessness. Last accessed 6th March 2015

WGSN Aldenton, S. (2014). Forbes Under 30 Summit – Takeaways. Available: http://www.wgsn.com/content/board_viewer/#/55187/page/1. Last accessed 14th Nov 2013. Aldenton, S. (2015). Justin Bieber Almost #breakstheinternet in Calvin Klein Campaign. Available: http://www.wgsn.com/content/board_viewer/#/56551/page/1. Last accessed 5th Feb 2015. Aquino, J. (2011). The 10 Most Successful Rebranding Campaigns Ever Read more: http://www.businessinsider.com/10-most-successful-rebranding-campaigns-2011-2?op=1#ixzz3J2ny7ZLj. Available at: http://www.businessinsider.com/10-most-successful-rebranding-campaigns-2011-2?op=1#ixzz3J2nfttDu. Last accessed 14th Jan 2015 Banks, L (2013) Generation Tech: Gen Y, connected. Available at: http://www.wgsn.com/content/board_viewer/#/129639/page/1. Last accessed 29th Jan 2015 Bell, A (2015) Shopper Forecast 2015. Available at: http://www.wgsn.com/content/board_viewer/#/55867/page/11 Last accessed 25th Nov2014 Bell, A. (2015). A/W 16/17 Consumer Forecast: Elemental – Beliefists. Available: http://www.wgsn.com/content/board_viewer/#/56827/page/3. Last accessed 25th Feb 2015. Brandweiner, N. (2013). From retail to me-tail: 2013's most important customer experience changes. Available: http://www.mycustomer.com/topic/customer-experience/customer-experience-management-2013-experts-predictions/161617. Last accessed 11th Nov 2014. Hendry, V (2015) Brands to Watch – Active Women http://www.wgsn.com/content/board_viewer/#/56131/page/5. . Last accessed 29th Jan 2015 Hendry, V. (2015). ISPO A/W 15/16 – Active. Available: http://www.wgsn.com/content/board_viewer/#/56915/page/9. Last accessed 2nd March 2015 Hughes, A (2014) Instagram: can it drive sales? Available at: http://www.wgsn.com/content/board_viewer/#/148312/page/1. Last accessed 29th Jan 2015. Hughes, A (2014) Instagram: can it drive sales? Available: http://www.wgsn.com/content/board_viewer/#/148312/page/1. Last Accessed: 22nd Nov 2014 Hughes, A. (2012). Localised product & VM: Anthropologie, NYC. Available: http://www.wgsn.com/content/board_viewer/#/135376/page/1. Last accessed 20th Feb 2015 Hughes, A. (2015). Five Shopping Apps to Watch. Available: http://www.wgsn.com/content/board_viewer/#/56144/page/2. Last accessed 13th Jan 2015 Jobling, A. (2013). Sustainable fashion: new industry demands. Available: http://www.wgsn.com/content/board_viewer/#/132925/page/1. Last accessed 11th Nov 2014. Jobling, A. (2013). Sustainable fashion: SLDF. Available: http://www.wgsn.com/content/board_viewer/#/122384/page/1. Last accessed 11th Nov 2014 Piras, L. (2014). Ones to watch: street-obsessed teens. Available: http://www.wgsn.com/content/board_viewer/#/149642/page/1. Last accessed 8th Jan 2014. Righetto, H. (2015). In-Store Technology – Interiors & Lifestyle. Available: http://www.wgsn.com/content/board_viewer/#/56743/page/1. Last accessed 28th Feb 2015. Rumsey, A . (2015). The Future of Retail 2015. Available: http://www.wgsn.com/content/board_viewer/#/56516/page/4. Last accessed 2nd Feb 2015. Saunter, L. (2014). Eight Ways Retail is Capitalising on Culture. Available: http://www.wgsn.com/content/board_viewer/#/55882/page/2. Last accessed 4th Feb 2015. Sturch, K. (2014). Outdoor Retailer S/S 15 - Trend Analysis. Available: http://www.wgsn.com/content/board_viewer/#/53404/page/2. Last accessed 28th Feb 2015 The WGSN Forecast team, (2014). Macro Trends A/W 16/17 – Elemental. Available at: http://www.wgsn.com/content/board_viewer/#/55440/page/4. Last Accessed 26th Nov 2014 Wgsn news (2014) PVH shares jump on positive outlook, Q2 earnings beat expectations, Hilfiger sales strong http://www.wgsn.com/news/?p=1111291 WGSN News (2014) The world wants UK youth fashion says River Island CEO. Available at: http://www.wgsn.com/news/?p=1117996. Last accessed 29th Jan 2015 WGSN News (2015) Consumers prepared to pay price for products that simplify hectic lives, Euromonitor reveals in top 10 global trends. http://www.wgsn.com/news/?p=1155486 WGSN news (2015) Tommy Hilfiger launches “revolutionary” digital sales showroom. Available at: http://www.wgsn.com/news/?p=1156951. Last accessed 26th March 2015 WGSN News . (2014). Jack Wills poised to expand in Asia, Middle East. Available: http://www.wgsn.com/news/?p=1118006. Last accessed 23rd March 2015 WGSN News. (2014). LFW: Topshop digital first dives into British seaside subcultures for catwalk inspiration. Available: http://www.wgsn.com/news/?p=1115466. Last accessed 14th Jan 2015. WGSN News. (2015). Retailers fail to meet consumer digital commerce expectations – IBM survey. Available: http://www.wgsn.com/news/?p=1154506. Last accessed 14th Jan 2015. WGSN News. (2015). UK enjoys robust year of retail sales with clothing volumes almost doubling – CBI survey. Available: http://www.wgsn.com/news/?p=1159616. Last accessed 29th Jan 2015. WGSN Think Tank. (2014). Millennial Parents. Available: http://www.wgsn.com/content/board_viewer/#/54527/page/2. Last accessed 10t Feb 2015. WGSN Think Tank. (2015). From Austerity to Opulence. Available: http://www.wgsn.com/content/board_viewer/#/56098/page/2. Last accessed 16th Jan 2015. WGSN Trend Watch (2014). Slow Outdoor Fitness: Japan. Available: http://www.wgsn.com/content/board_viewer/#/53820/page/1. Last accessed 28th Feb 2015. Williams, C. (2015). Workations. Available: http://www.wgsn.com/content/board_viewer/#/56746/page/2. Last accessed 17th Feb 2015.

112 Newspapers Washington post: Bloomberg. (2015). J. Crew's Mickey Drexler Offers Mea Culpa on 'Lousy Year' in Women's Clothing. Available: http://washpost.bloomberg.com/Story?docId=1376-NLFIY56JTSES01-79G7GOEVLCTS0PMEP3GP8PJCV4. Last accessed 3rd April 2015

Bate, M (2014) Stranger Liaisons. Available at: https://www.lsnglobal.com/micro-trends/article/16680/stranger-liaisons. Last accessed 3rd March 2015 NY Times: Cooke, S and Buchanan, V (2014) The Flat Age Society. Available at: https://www.lsnglobal.com/macro-trends/article/15379/the-flat-age-society-1. Last accessed 6th March 2015 Henig, R. (2010). What is it about 20 something's?. Available: http://www.nytimes.com/2010/08/22/magazine/22Adulthood-t.html?pagewanted=all&_r=0. Last accessed 7th March 2015 Cooke, S et al.. (2014). Awakening Tech. Available: ttps://www.lsnglobal.com/macro-trends/article/16546/awakening-tech. Last Accessed: 3rd March 2015 Cooke, S. (2014). Millennials and Baby Boomers focus on healthy ageing. Available: https://www.lsnglobal.com/behaviours/article/15769/millennials-and-baby-boomers-focus-on-healthy-ageing. Last accessed 10th feb 2015. The Telegraph Firth, P (2014) Made in the USA movement gathers strength. Available: https://www.lsnglobal.com/news/article/16110/made-in-the-usa-movement-gathers-strength. Last accessed 23rd Feb 2015 Hall, J. (2011). Ben Lewis interview: River Island chief on reviving 80s-style Chelsea Girl. Available: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8392014/Ben-Lewis-interview-River-Island-chief-on-reviving-80s-style-Chelsea-Girl.html. Last accessed 8th Jan 2015 Firth, P and Buchanan, V (2014) Flawed Fashions . Available: https://www.lsnglobal.com/macro-trends/article/4595/the-tomorrow-store Last accessed 9th Jan 2015. Moss, V. (2015). Richard Nicoll brings a fashion edge to Jack Wills. Available: http://fashion.telegraph.co.uk/article/TMG11446432/Richard-Nicoll-brings-a-fashion-edge-to-Jack-Wills.html. Last accessed 23rd March 2015. Firth, P and Buchanan, V. (2014). The Sharded Self. Available: https://www.lsnglobal.com. Last accessed 9th Jan 2015. Jordan, A (2014). Half of millennials see postitive impact of social media on day to day interactions. Available at: https://www.lsnglobal.com/behaviours/article/16552/half-of-millennials-see-positive-impact-of-social-media-on-day-to-day-interactions. Last accessed 1st Feb 2015 Financial times: Jordan, A. (2015). MILLENNIALS WILLING TO PAY A PREMIUM FOR ECO-FRIENDLY PACKAGING. Available: https://www.lsnglobal.com/behaviours/article/17043/millennials-willing-to-pay-a-premium-for-eco-friendly-packaging. Last accessed 4th Feb 2015. Paton, E. (2014). Mounting global woes weigh on luxury industry. Available: http://www.ft.com/cms/s/0/c54f9e10-4fca-11e4-a0a4-00144feab7de.html#slide0. Last accessed 28th Feb 2015 Jordan, A. (2015). SHARP RISE IN VIDEO POSTS ON FACEBOOK MARKS SHIFT TOWARDS VISUAL NEWSFEEDS. Available: https://www.lsnglobal.com/news/article/16974/sharp-rise-in-video-posts-on-facebook-marks-shift-towards-visual-newsfeeds. Last accessed 4th Jan 2015. Burgess, K. (2012). Jack Wills ditches its sister brand. Available: http://www.ft.com/cms/s/0/799caa5a-1c35-11e2-a14a-00144feabdc0.html#axzz3OGFSkCih. Last accessed 9th Jan 2015 Jordan, A. (2015). Zen den: Kiss your worries goodbye at artist’s sensory exhibition. Available: https://www.lsnglobal.com/seed/article/16957/zen-den-kiss-your-worries-goodbye-at-artist-s-sensory-exhibition. Last accessed 20th Feb 2015. LSN Global (2012) The New Sublimity. Available at: https://www.lsnglobal.com/tag/New+Sublimity. Last accessed 20th Feb 2015 Independent: Lsn Global (2014) The Polarity Paradox. Available at: https://www.lsnglobal.com/seed/article/15406/the-polarity-paradox-the-new-age-of-extremes. Last accessed 22nd Feb 2015 Hooton, C. (2014). First Kiss viral video was just a clothing advert starring actors. Available: http://www.independent.co.uk/news/weird-news/first-kiss-viral-video-was-just-a-clothing-advert-starring-actors-9188967.html. Last accessed 29th March 2015. Manthorpe, R and Buchanan, V (2014) Dust. Available at: https://www.lsnglobal.com/tag/Dust+Redux. Last accessed 3rd March 2015 Armitage, J . (2014). Expensive fashion brands Abercrombie & Fitch and Hollister dumped by teens in favour of H&M and Zara. Available: http://www.independent.co.uk/news/business/news/expensive-fashion-brands-abercrombie--fitch-and-hollister-dumped-by-teens-in-favour-of-hm-and-zara-9697555.html. Last Manthorpe, R and Maiki, J (2015) Vishnu Singh: 10 hot consumer trends for 2015. Available at: https://www.lsnglobal.com/tag/Ericsson+ConsumerLab. Last accessed 18th March 2015 accessed 13th Jan 2015 Mansfield, N (2014) Why brands need purpos. Available at: https://www.lsnglobal.com/tag/Meaningful+brands. Last accessed 23rd March 2015 McCarthy, M. (2015). Millennials take a different approach in thier pursuit of happiness. Available: https://www.lsnglobal.com/. Last accessed 9th Jan 2015. The Guardian PSFK Labs. (2014). How Brick-and-Mortar Stores Can Build Community [Future of Retail]. Available: http://www.psfk.com/2014/11/retail-2015-be-the-hub.html. Last accessed 9th Jan 2015 Behr, R. (2015). Britain’s special relationship is with the US and Europe. We risk it at our peril . Available: http://www.theguardian.com/commentisfree/2015/jan/16/britain-special-relationship-us-europe-david-cameron. Last accessed 11th Feb 2015. Rees, T and Bishop, A. (2014). Airport Retail. Available: https://www.lsnglobal.com/markets/article/15685/airport-retail. Last accessed 21st Feb 2015. Carter, N. (2014). Abercrombie & Fitch’s decision to ditch its logo is unlikely to revive the brand. Available: http://www.theguardian.com/media-network/media-network-blog/2014/sep/02/abercrombie-fitch-ditch-logo-revive-brand. Last accessed 12th Nov 2014. Reyner, M and Ellerby, J. (2010). Just Jeans. Available: https://www.lsnglobal.com/innovate/article/2043/just-jeans. Last accessed 11th Feb 2015. Dishman, L. ( 2015). Why teens stopped shopping at Abercrombie and Wet Seal. Available: http://www.theguardian.com/business/2015/feb/25/clothing-retailers-teens-abercrombie-fitch-wet-seal-aeropostale-hollister. Last accessed 3rd March 2015. Robinson, H and Maciejowska, K (2013) Emotional Technology Humphris, I (2014) In-store technology: top tips for high street retailers available at: http://www.theguardian.com/media-network/media-network-blog/2014/apr/24/technology-high-street-topshop-burberry. Last accessed 21st Jan 2015 Robinson, H et al.. (2012). Millennial Hotels. Available: http://staging.lsnglobal.com/trends/view/5631. Last accessed 10th Feb 2015. Mainwaring, S. (2013). The fastest way to kill your brand: inauthenticity . Available: http://www.theguardian.com/sustainable-business/inauthenticity-kills-brands. Last accessed 3rd March 2015 Ross, C (2012) MILLENNIALS ARE THE MOST INFLUENTIAL GENERATION. Available at: https://www.lsnglobal.com/behaviours/article/6806/millennials-are-the-most-influential-generation. Last accessed 28th Jan 2015 Malik, S. (2015). The dependent generation: half young European adults live with their parents. Available: http://www.theguardian.com/society/2014/mar/24/dependent-generation-half-young-european-adults-live-parents. Last accessed 21st Feb 2015. Saw, M (2009) Available: http://staging.lsnglobal.com/subscribe/. Accessed 1st March 2015 Murray, L. (2014). Lifestyle brands: creating positive experiences. Available: http://www.theguardian.com/media-network/partner-zone-brand-union/lifestyle-brands-creating-positive-experiences. Last accessed 5th Dec 2014. Summerton, D (2014) Contemplative space: Hotel reflects simple values. Available at: https://www.lsnglobal.com/seed/article/15513/contemplative-space-hotel-reflects-simple-values. Last accessed 20th Feb 2015 Roberts, D. (2015). Abercrombie & Fitch case: justices set to side with Muslim woman over headscarf . Available: http://www.theguardian.com/law/2015/feb/25/supreme-court-muslim-woman-abercrombie-fitch-case. Last accessed 2nd March 2015. Szymanska, A (2014) ESCAPIST E-JOURNALS- HTTPS://WWW.LSNGLOBAL.COM/MICRO-TRENDS/ARTICLE/16020/ESCAPIST-E-JOURNALS Saner, E. (2012) Abercrombie & Fitch: for beautiful people only Available at: http://www.theguardian.com/fashion/2012/apr/28/abercrombie-fitch-savile-row. Last accessed 30th Dec 2014. US Census Bureau. (2011). Teens: USA. Available: https://www.lsnglobal.com/markets/article/3118/teens-usa. Last accessed 23rd Feb 2015. Trimble, C. (2014). Why online video is the future of content marketing . Available: http://www.theguardian.com/small-business-network/2014/jan/14/video-content-marketing-media-online. Last accessed 17th Feb 2015. Walker, D (2014) MILLENNIALS SHOPPING HABITS DICTATED BY FAUXSUMERISM. Available at: https://www.lsnglobal.com/behaviours/article/15632/millennials-shopping-habits-dictated-by-fauxsumerism Wakefield, L. (2014). Students versus families: who are the better budgeters?. Available: http://www.theguardian.com/education/2014/aug/08/students-spending-money-more-carefully. Last accessed 15th Jan 2015. Walker, D and Buchanan (2015) ZONED-OUT SPACES Available at: https://www.lsnglobal.com/micro-trends/article/17130/zoned-out-spaces. Last Accessed 17th March 2015 Wood, Z (2014) Veteran Next product director joins Abercrombie & Fitch Available at: http://www.theguardian.com/business/2014/jun/10/next-product-chief-joins-abercrombie-and-fitch Wallman (2012) Catherine Mayer : The age of agelessness. Available at: https://www.lsnglobal.com/the-big-idea/article/5765/catherine-mayer-the-age-of-agelessness. Last accessed 6th March 2015 Patel, D.2013) The importance of in-store video for retailers http://www.theguardian.com/media-network/media-network-blog/2013/apr/25/video-in-store-importance-retail. Last accessed 16th April 2015 Feran, T. (2014). Abercrombie & Fitch redesigns everything from clothes to corporate structure . Available: http://www.dispatch.com/content/stories/business/2014/10/26/back-to-cool.html. Last accessed 21st Nov 2014 Smith, C. (2014). Here's Why Instagram's Demographics Are So Attractive To Brands. Available: http://www.businessinsider.com/instagram-demographics-2013-12?IR=T. Last accessed 7th March 2015. Austin, C. (2013). DATA: Online Shoppers Love Video Ads More Than Any Other Type Of Ad. Available: http://www.businessinsider.com/online-shoppers-love-video-ads-2013-1?IR=T. Last accessed 29th March 2015. Peterson, H (2013) Four Signs That Abercrombie Is Completely Out Of Touch With Its Customers. Available at: http://www.businessinsider.com/abercrombie-is-out-of-touch-2013-11?IR=T

L.A. Times Li, S et al. (2014). American Apparel, others try to profit from domestic production. Available: http://www.latimes.com/business/la-fi-american-apparel-made-in-usa-20140810-story.html#page=1. Last accessed 25th April 2015. Trade Publications Retail Week:

Rushton, K (2011) River Island to revive Chelsea Girl brand. Available at: http://www.retail-week.com/sectors/fashion/river-island-to-revive-chelsea-girl-brand/5023449.article

Berwin, L (2010) The Great Outdoors. Retail Week. P20-22

Baldwin, C. (2015). American Eagle outpaces US teen fashion rival Abercrombie & Fitch. Available: http://www.retail-week.com/topics/international/american-eagle-outpaces-us-teen-fashion-rival-abercrombie-and-fitch/5072770.article. Last accessed 12th March 2015. February 13th 2015:

Williams, S (2015) Etailers can offer Customers more through stores. P32

(Hughes, N, 2015) Retail Week Live: Bringing retail’s biggest names and innovations together p37

January 9th 2015: Westnedge, H (2015)– How will retail play out in 2015?p16

9th jan 2015 (pg 23) How will digital technology change shopping in 2015?

Rushton, K (2011) River Island to revive Chelsea Girl brand. Available at: http://www.retail-week.com/sectors/fashion/river-island-to-revive-chelsea-girl-brand/5023449.article. Last accessed 23rd April 2015

Heywood, L. (2014). Analysis: How to prepare for the next generation of shoppers. Available: http://www.retail-week.com/technology/analysis-how-to-prepare-for-the-next-generation-of-shoppers/5065973.article. Last accessed 12th Nov 2014.

Shop Reports: 24th November 2014 When should a re brand be undertaken? Available at :https://live.retail-week.com/i2i/kc/file/1336/download. Last accessed 20th March 2015

(Whitehead, J, 2014) ‘Keep customers close’ Doherty, K. (2014). Innovate to survive. Retail Week. . p21

Drapers

Spybey, K. (2015). Lights, camera, transaction. Drapers.p11 Spybey, K (2015) ‘Ecommerce: From Pinterest pins to purchase. Drapers.p11 Knowles, J (2015) All over the shop. P22

113 Images

Fig 1: Own image Fig 2: Source: http://en.wikipedia.org/wiki/History_of_Abercrombie_%26_Fitch Fig 3: Source: http://en.wikipedia.org/wiki/History_of_Abercrombie_%26_Fitch Fig 4: Source: http://stylerumor.com/wp-content/uploads/2011/05/Abercrombie-and-Fitch-101-Models-in-Paris-1.jpg Fig 5: Source: http://www.ibtimes.com/ Fig 6: Source: http://www.acontinuouslean.com/ Fig 7: Source: http://americanhistory.si.edu/ Fig 8: Source: http://www.findthatlogo.com/ Fig 9: http://www.anfcareers.com/ Fig 10-13: https://instagram.com/abercrombie/ Fig 14: http://www.galleryhip.com Fig 15: Source: http://www.theguardian.com/media-network/media-network-blog/2014/sep/02/abercrombie-fitch-ditch-logo-revive-brand Fig 16: Source: https://instagram.com/abercrombie/ Fig 17: Source: http://41.media.tumblr.com/7b1b67e33de995dc93300a6814be1e80/tumblr_mj55o3umkf1ro6i6yo1_500.jpg Fig 18: staticflicker.com Fig 19-20: Source: http://www.abercrombie.co.uk/shop/uk Fig 21: Source: http://www.abercrombie.co.uk/shop/uk Fig 22: Source: Own image Fig 23 Source: http:// abercrombie1892.weebly.com Fig 24: Source: http://unionsquareshop.com/images/stores/Abercrombie_and_Fitch/Abercrombie_Fitch-02.jpg Fig 25: Source: http://www.abercrombie.co.uk/shop/uk Fig 26-32: Source: http://www.abercrombie.co.uk/shop/uk Fig 33: Own Image Fig 34-40: Own Images Fig 41: Source: http://elford.fcdev.net/ Fig 42: Source: https://instagram.com/abercrombie/ Fig 43: Source: http://www.chinadaily.com.cn/business/img/attachement/jpg/site1/20140419/eca86bd9e2eb14bc143d0d.jpg Fig: 44-49: Source: https://instagram.com/hollisterco and https://instagram.com/abercrombie/ Fig 50: https://instagram.com/abercrombie/ Fig 51: Source: http://chicsstyle.com/wp-content/uploads/2014/04/American-Eagle-8.jpg Fig 52: Source: www.psfk.com Fig 53: Own image Fig 54-58: Source: https://instagram.com/abercrombie/ Fig 59: Source: http://www.theguardian.com/media-network/media-network-blog/2014/sep/02/abercrombie-fitch-ditch-logo-revive-brand Fig 60: Source: https://instagram.com/johnbozinov/ Fig 61: Source: https://instagram.com/johnbozinov/ Fig 62: Own Image Fig 63: http://25.media.tumblr.com/tumblr_mdqx4igtCh1qcv7buo1_500.jpg Fig 64: Source: https://instagram.com/folkmagazine/ Fig 65: Source: Own image Fig 66: Source: Own Image Fig 67: Source: Own Image Fig 68: Source: https://instagram.com/johnbozinov/ Fig 69: Source: https://instagram.com/dyerandjenkins/ Fig 70: Source: www.dhedral.com. Selfridges_Silence-Room-jpg Fig 71-73: Source: own image Fig 74: Source: http://purple.fr/diary/entry/pipilotti-rist-worry-will-vanish-at-hauser-and-wirth-london Fig 75: Source: Own Image: Sketch up Design Fig 76: Source: Own Image: Sketch up design Fig 77: Source: Own Image Fig 78: Source: https://instagram.com/johnbozinov/ Fig 79-80: Source: : http://americanhistory.si.edu/ Fig 81: Source: https://instagram.com/elizabethgadd/ Fig 82: Source: https://instagram.com/johnbozinov/ Fig 83: Source: www.lazygirls.info Fig 84: Source: www.pinterest.com318 × 480 Fig 85: Source: www.gettyimages.com Fig 86: Source: www.ryansecreast.com Fig 87: Source: Own Image- Sketch up design Fig 88: Source: Own Image Fig 89: Source: Own Image Fig 90-91: Instagram Screen Fig 92: Source: www.fastcocreate.com Fig 93: Source: www.adweek.com Fig 94-95: Source: https://instagram.com/johnbozinov/ Fig 96: Source: Own image Fig 97: Source: Own image: Sketch up design Fig 98: Source: http://folklifestyle.tumblr.com/ Fig 98a: Source: Own Image Fig 99: Source: Own image Fig 100: Source: Own Image

114