Abercrombie & Fitch

What is Abercrombie & Fitch?

Whether you've worn Abercrombie or not, you've almost certainly heard of them. Known for their eye-catching storefronts, distinctive scent, and trendy clothes, they've been a mainstay in the global fashion scene for decades.

Background

Abercrombie & Fitch was originally established by David Abercrombie in 1892 as an upscale sporting goods store. Ezra Fitch, a high-profile lawyer and regular customer of the store, bought a significant share in 1904, and hence the store was rebranded to Abercrombie & Fitch. The company specialized in selling outdoor gear, including hunting and camping equipment, which attracted an affluent clientele including the likes of Theodore Roosevelt, Amelia Earhart, and Ernest Hemingway.

Following a series of financial woes in 1976, the company went bankrupt. A year later, it was revived by Oshman's Sporting Goods, an American retailer, which shifted its focus toward clothing. However, the company saw little success under the new ownership. This led to another rebranding in 1988 when it was purchased by The Limited Inc (now L Brands). This acquisition came with a radical change in direction, which included targeting a younger demographic that would completely transform the brand's identity.

Growth

When L Brands acquired Abercrombie & Fitch in 1988, it aimed to tap into the untapped youth demographic. Mike Jeffries, who was appointed as CEO in 1992, was instrumental in this transformative phase and pivoted the brand towards a more youth-centric, aspirational lifestyle approach.

Stores were redesigned to create a more upscale, youthful atmosphere. With dim lighting, pumped-in fragrance, and loud music, Abercrombie & Fitch offered not just clothes but an immersive experience.

The clothing line, designed to exude a preppy, casual, and outdoorsy style, soon became synonymous with the 'cool' and 'popular' image among high school and college students. In the late 90s and early 2000s, Abercrombie & Fitch was the pinacle of teen fashion, enjoying unprecedented growth and skyrocketing popularity.

Despite this growth, the brand's strategy also included the use of exclusivity, promoting a certain body type and image, which led to a number of controversies. This, combined with changes in fashion and societal norms, led to a decline in popularity by the mid-2010s. Their provocative advertising and the "cool kids" image they promoted became increasingly disconnected from their evolving consumer base, which sought more inclusivity and less emphasis on physical appearance.

Despite facing these headwinds, Abercrombie & Fitch has managed to remain a significant player in the retail space. Thanks to their ability to pivot yet again, the company started restructuring its marketing approach, aiming for more inclusivity and less emphasis on the 'cool' factor.

Where are they now?

Fast forward to 2023, and it seems Abercrombie & Fitch might be ready to steal the limelight once again. After a period of change and adaptation, the brand's newly designed clothing line is making waves, consistently selling out online and in many of its locations.

It’s shift in focus towards producing quality, fashion-forward apparel that appeals to a broader demographic has managed to reinvigorate the brand, shed the controversies of the past, and engage a new generation of consumers.

Key Takeaways

1. Adaptability: Abercrombie's history of pivoting highlights the importance of keeping up with cultural trends. The brand's current attempt to shed its exclusive image and adopt a more inclusive stance is a testament to this principle.

2. Branding matters: Abercrombie's success in the 90s and early 2000s was a result of strong branding. However, it also serves as a cautionary tale about the potential pitfalls of a rigid brand image that fails to adapt to changing societal norms.

3. Experience-based retailing: Abercrombie was a pioneer in creating a shopping experience that appealed to the senses of its customers. Today, as retail shifts increasingly online, experiential retailing remains more relevant than ever.