Abercrombie & FItch vs American Eagle Essay

INTRODUCTIONFashion may be defined as a way of living, decorating, etc., which is popular today, but will soon abide their popularity. It is something passing and temporary, a simple craze of the moment to be looked see upon with dislike. For example, tight pants atomic number 18 the fashion today, but altogether a short while ago handsome loose pants were the effectuate of the day. If today a man appears in society wearing broad pants, he would be held up to ridicule, but only a a few(prenominal) years ago they were the height of fashion, symbols of good taste and culture. Ameri earth-closet shoot Outfitters (AEO) and Abercrombie & wood pussy (A&F) are dickens companies that play a major voice in the clothing industry. The following discussion with compare and contrast the warring advantages of the supply chain of the two companies.COMPANY HISTORYAEOAmerican bird of Jove Outfitters, Inc., a billion dollar corporation, is ranked as 1 of the largest sell chains in Amer ica. With their central collective headquarters in Pittsburg, Pennsylvania, and two other corporate facilities hardened in New York City and Tokyo, Japan, American bird of Jove, Inc. operates numerous mainline stores, pulverisation stores, franchised stores, and distribution circle rounds across the country and the globe.In 1977, brothers, Jerry and Mark Silverman, who owned and operated Silvermans Menswear, a Retail Ventures, Inc. connection, founded American double birdie Outfitters. Opening their first store in Novi, Michigan at cardinal Oaks Mall, the Silverman brothers were hoping to diversify their menswear line (AEO watchfulness Co., 2013). Several stores were undefendcapable up and a catalog was created. American Eagle Outfitters continued to grow into 1990, when Jacob Price excessivelyk oer which led to the introduction of perfunctory, private-label sell for men and women. In 1994, American Eagle Outfitters becamepart of the NASDAQ stock exchange, which enabled the opening of 90 stores the following year (AEO circumspection Co., 2013). In 1996, new executives joined AEO and decided to modify the engineer demo graphicals of the target market and reach more women, as well as digest on those who were between the ages of 18 and 32.Shortly after, American Eagle expand to e-commerce with ae.com. By 2000, American Eagle operated 500 stores and revenues for the participation quintupled to $1 billion. The Canadian market was penetrated in 2001 and in 2003 American Eagle expanded to Hawaii. aery, a chump extension of American Eagle, boil downing on intimates for women, was launched in 2006. a nonher(prenominal) line extension, 77kids, which offered clothing for babies to pre-teen girls and boys, was established online in 2008 and the first 77kids store was opened in 2010. Today, American Eagle Outfitters, Inc. operates all over 1,000 stores, including 911 American Eagle Outfitters stores, 158 Aerie stores, and 21 77Kids stores, 21 of which are franchised around the globe. Additionally, ae.com, which includes links to Aerie and 77kids, reaches 77 countries.American Eagle Outfitters offers apparel, space, and accessories for both men and women. Clothing deal is comprised of denims, sweaters, graphic Ts, fleece and sweatsuithirts, outerwear, tops and shirts, dresses, and skirts. Shoe merchandise includes sneakers, boots, flats, sandals, slippers, clogs, heals, loafers and socks. Accessories merchandise consists of jewelry, hats, sunglasses, scarves, bags, effect and cologne, purses, and wallets. Aerie offers merchandise for college girls that include dorm wear, such as sweats and pajamas, exercise apparel, bras, underwear, accessories, and some personal care items. 77kids offers apparel for infants, children, and preteen girls and boys (AEO Management Co., 2013).A&FAbercrombie & Fitch originated in 1891 as a retail sporting goods store based in New York City. It was known for its full variety of expensive and often exotic sporting equipment and attire, ranging from tennis shoes to elephant guns. For more than half a century, the stores apparel, guns, tackle, and other merchandise were the image of wealth and prestige.When it expanded, the firm confined its new branch stores to downtown areas of large cities and to resort areas. In the early 1970s, Abercrombie & Fitch attempted to let on its client base by adding less-expensive items to its usual stock and by move into the suburbs, where other stores had been building for some time. Although these steps did attract new customers, they came too late Abercrombie & Fitch was in financial trouble and filed for bankruptcy in 1976 after 85 years in business (cyclopedia Britannica Online, 2013). Oshmans fast Goods, Inc. bought the firm in1978. In 1988 Abercrombie & Fitch was bought by The Limited, Inc (Encyclopedia Britannica Online, 2013). Repositi id as the swopmarked casual luxury fault, it became parent to the subsidiary patsys Abercrombie kids, a childrens line launched in 1998 and marketed as Abercrombie Hollister Co., a line for lateer teens launched in 2000 RUEHL No. 925, a line targeting post-graduates launched in 2004 and Gilly Hicks, a womens line launched in 2008. pursuance Abercrombie & Fitchs overhaul, the company received significant criticism for its publicise and its clothing, which were perceived by legion(predicate) as encouraging its target auditory modality to adopt a sexually promiscuous lifestyle (Encyclopedia Britannica Online, 2013).MISSION contentionAEOAmerican Eagle has a clearly defined set of corporate values which guides the actions of employees at all levels of the AE organization PEOPLEThe vitality of our company resides in our people. We collaborate, we engage, we achieve (About.com, 2013). INTEGRITYWe hold ourselves accountable to the highest standards. In the showcase of difficulties and challenges, we dont compromise (About.com, 2013). PASSIONOur passion infuses our actions and p urpose. It transforms stores into places of energy and customer delight (About.com, 2013). INNOVATIONWe operate in a dynamic and warring industry. We continually refine the unique processes that drive our business, and we use insightful enquiry and analysis to balance our instinct and to guide our decisions. Our associates embody entrepreneurial spirit, flummox creative solutions, and initiate change (About.com, 2013). TEAMWORKWe work together listening to one another, reaching consensus and supporting group decisions. We celebrate achievements. Because we respect and trust one another and commit ourselves to our company goals, our teamwork succeeds (About.com, 2013).Additionally American Eagle has a service goal that guides employees in their e rattlingday retailing tasks We respond to the inevitably of our customer and enjoy the satisfaction of a job well do (About.com, 2013). A&FAbercrombie and Fitch focuses upon high-quality merchandise that compliments the casual spotless American lifestyle (About.com, 2013). But beyond that simple mission statement, Abercrombie & Fitch emphasizes its brand vision, brand attributes, and the value of the Abercrombie & Fitch brand, which has been of ultimate importance since chief executive officer Mike Jeffries took on the leadership role. Abercrombie & Fitch has said this active its brand to its stakeholdersThe A&F brand is more authentic and relevant than ever. The brand is our lifestyle, our focusit ensures growth and promises st expertness. A great brand is a center of growth and revenueit represents a relationship with customers. Its not a faddish chip to be cashed in on nearsighted gains. The value of having a great brand is far-reaching and cannot be overstatedits a snowball effect. The A&F label gives us the ability to evolve, creating endless growth opportunities. It helps us attract the brightest, most talented young people from around the country. It attracts millions to our website. It allows for great er profit margins. It lessens the risk of moving on new business concepts. It promotes innovation. It ensures long-term profitability. It adds built-in value to everything we produce. It accelerates growth. It stabilizes. It gives focus and direction. It produces an ruttish response in consumers (About.com, 2013).Comparing these two mission statements, it is clear that American Eagle Outfitters is focused more on just their merchandise, unlike Abercrombie & Fitch. AEO has a passion not only for their brand and employees but their consumers as well. while A&F, is only focused on their brand not on theoperational execution of its employees, or the experience of its customers.This holds true of A&F because recently their CEO, Mike Jeffries, came under fire for reportedly saying they only target to thin and beautiful people which is why they do not sell or make any size over 10 or large for women. Mike Jeffries has said, Thats why we hire better-looking people because good-looking p eople attract other good-looking people, and we insufficiency to market to cool, good-looking people. We dont market to anyone other than that (Walker, 2013). On A&Fs website, they claim to embrace variety show by means ofout the entire organization but what Mike Jeffries has been quoted saying, is contradictory of what the company claims they are nearly.We are committed to embracing the diversity of our associates and management throughout our organization. On the surface, our dedication to maintaining a respective(a) workings and shopping environment can be easily seen by walking through one of our stores, domestically and internationally. More notably, Abercrombie & Fitchs commitment can be seen through our exceptional diversity programs, whether they are internal or external, and the results they yield. Diversity reflects the multidimensional insights we share collectively. Simply put, it is imperative to our growth that we staff our business with diverse talent and run ou r business with an inclusive mindset (Abercrombie & Fitch, 2013).SUPPLY imageAEOAmerican Eagle Outfitters strategy to improve apparel factory working conditions starts with factory inspections based on their Vendor Code of Conduct. They then focus on remediating the issues they find during those inspections, which often includes additional factory training and efficacy building programs (AEO Management Co., 2013).They partner with other brands and retailers, multi-stakeholder organizations, civil society groups, trade unions, governments, and others to better understand and address what is happening in the factories and countries where their clothes are made. By working together, they strive tocollectively develop more sustainable solutions to the problems they find (AEO Management Co., 2013).Finally, they are committed to being obvious about how they are doing. By reporting publicly on their efforts, this is one of the many ways they ensure that they remain focused on their goals , disciplined in their efforts, and accountability for their performance (AEO Management Co., 2013).A&FAbercrombie & Fitch has very tight control over the design and manufacturing of their clothing. To help the company bound control, have higher margins and protect the brand, they design their own ranges which are construct exclusively for A&F.The head office for A&F is located in Ohio and is called The Campus. At this location, there is a center known as the Innovative Design Center. Here, a dedicated team uses over 100 wash, quality assurance, lab and graphic machines (Webb, 2009). They are responsible for merchandise design and development. Design packages were created by the company to reduce the time and speak to of product development (Webb, 2009). These design packages are then given to the vendors.By keeping strict control over design, manufacturing and product development, the company is able to protect the brand from being copied and having the image damaged. By having greater control, it allows A&F to deliver on their promise to the customer and consumer. This in turn creates a relationship based on trust and gives them a agonistic advantage.Again, with Abercrombie & Fitch, they are more focused on keeping control of their brand and image, while American Eagle Outfitters are trying to improve factory conditions for their workers. This once again proves that A&F does not care about their people.CONCLUSIONIn summary, Abercrombie & Fitch and American Eagle Outfitters play a significant role in the clothing industry. While A&Fs practices are somewhat contradictory and outlandish, AEO remains the opposite. A&F needs to take a cue from AEO and focus more on their consumers than just their brand. There is no question why it is that AEO is ranked at 649 on the Fortune 1000 List and A&F is tracking behind them at 651 (Salesforce, 2013).Works CitedAbercrombie & Fitch. (2013). Diversity Commitment. Retrieved from A&F Cares http//www.anfcares.org/diversity /commitment.jsp About.com. (2013). Abercrombie & Fitch Mission Statement. Retrieved from About.com http//retailindustry.about.com/od/retailbestpractices/ig/ social club-Mission-Statements/AbercrombieFitch-Mission-Statement.htm About.com. (2013). American Eagle Company Mission Statement. Retrieved from About.com http//retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/American-Eagle-Mission-Values.htm AEO Management Co. (2013). AEO History. Retrieved from American Eagle Outfitters http//phx.corporate-ir.net/phoenix.zhtml?c=81256&p=irol-history AEO Management Co. (2013). AEO Supply Chain. Retrieved from American Eagle Outfitters http//www.ae.com/web/corpResp/supply_chain/our_strategy.jsp Encyclopedia Britannica Online. (2013). Abercrombie & Fitch. Retrieved from Encyclopedia Britannica Online http//www.britannica.com/EBchecked/topic/1121/Abercrombie-Fitch Salesforce. (2013). Fortune 1000 Company List. Retrieved from Data.com Connect https//connect.data.com/d irectory/company/fortune/1000 Walker, T. (2013, May 08). Not available in XL. Retrieved from The Indepedent http//www.independent.co.uk/ watchword/uk/home-news/not-available-in-xl-abercrombiefitch-ceo-mike-jeffries-accused-of-only-wanting-thin-and-beautiful-people-8608022.html Webb, B. (2009). Managing the Fashion Brand Case Study Assignment.