Abercrombie
and Fitch remains innovative, new, and modern by incorporating the ideal
of youth. The average age of their employees and management team is 25
years old. This is fairly young for most companies. Under the guidance of
CEO Mike Jeffries, the company prides itself on maintaining its youth.
Abercrombie and Fitch was founded in 1892 and has since built up five
brand names: Abercrombie and Fitch, Abercrombie Kids, Hollister, Ruehl,
and Gilly Hicks.
Abercrombie and Fitch has also been innovative in expanding their target market by creating five brand names directed towards different age groups and demographics. Abercrombie & Fitch and Abercrombie Kids both have a nature and East coast theme and provide casual clothing. Abercrombie & Fitch targets the 15 to mid-20 year old age group, while Abercrombie Kids covers the 7 to 14 year old age group. Hollister is very laid-back with a West coast, Southern California surfer theme aimed towards high school students. Ruehl is also casual, but slightly more sophisticated. It is directed toward the post-graduate age of 22 to 35 year olds and has a New York City theme. Gilly Hicks is the newest to open in 2008 and intertwines a mix of all of the ages and targets of the previous three lines. It offers bras, underwear, and loungewear and has a Sydney, Australia beach mansion theme.
A system that separates this company from many others is their use of the five senses as an innovative tool. In every Abercrombie & Fitch store, their customers are familiar with the loud, fun, and lively music. They routinely spray Abercrombie "Fierce" cologne to pull in customers. Their softest and most textural clothes are always right in the front room. They now offer lines of make up and flavored lip glosses.
Their sense of sight is the most controversial part of the industry, but clearly brings attention to the company. Abercrombie & Fitch uses their own employees as advertisements. Although they cannot discriminate on the basis of looks for their management, merchandising, designing, and other corporate positions, they use their sales people to visually sell the product. Their sales people are referred to as "models." These models are attractive, youthful men and women who fit the ideal Abercrombie & Fitch image. Some of their sales people are even used for photo shoots. At the New York City flagship store, in the summer they have their modeling men stand outside of their store shirtless as a form of attracting customers.
This is only one innovative form of advertising. Abercrombie & Fitch is also very well known for advertising through use of brand image. Many of their shirts, sweatshirts, and sweatpants have their brand name written across the garments for everyone else to see. This has become a great way to spread out brand image and brand name.
Abercrombie & Fitch opened 150 stores in the past year, but as a result of the economy, they are slowing down and are only able to open 15 stores in the next six months. They also are cutting back on small details and lowering budgets. Although employees are secure in their jobs and Abercrombie & Fitch is not laying off employees, they are stressing the importance of the work ethic and they are slowing their hiring process and making it slightly more competitive.