A&F Will Provide More Fashionable Clothes To Change The Brand Style

Recently, on the conference call of Abercrombie&Fitch Co., the word "teenager" was mentioned 0 times. On the contrary, the Group said that it would change the strategy of its flagship brand Abercrombie&Fitch - expanding the target market, transforming the brand, and providing more fashionable rather than academic clothes.

The latest quarterly report released by Abercrombie&Fitch Co. on the same day showed that the company's net loss in the first quarter of 2015 was $63.2 million, compared with $23.7 million in the same period last year; Net sales fell 14% to 709 million.

Last December, former CEO Mike Since Jeffries left office, the Group has not found a suitable successor. In the investment relationship news released by Abercrombie&Fitch Co., the Group said that it was starting to select a new CEO. If it could not find a suitable candidate, the company's performance might be affected. The Group prefers to select from within, including Jonathan, Chief Operating Officer Ramsden, President of Abercrombie brand and Fran Horowitz, President of Hollister brand.

The group also admitted that "if the company's brand transformation fails to achieve the expected effect, it will have a negative impact on the company." Arthur, executive chairman Martinez said: "In this quarter, the company is working hard to revitalize the brand and increase revenue. We also know that the first quarter was a bit difficult because of the changes from administrative personnel to brand."

Previously, Abercrombie&Fitch Co. had four major brands, Abercrombie&Fitch, Abercrombie, Hollister and GillyHicks. However, in November 2013, the company decided to close the independent operation GillyHicks The limited edition products of GillyHicks are now sold in Hollister's store.

This time, this company, which has dominated the youth market for decades, once again stressed that it should pay more attention to "older" consumers - the ideal consumers are college or newly graduated students.

Previously, according to the survey report on the consumption behavior of American teenagers released by PipeJaffary, an American investment bank. For the first time in history, teenagers spend almost as much money on food as on clothes. Teenagers spend 23% of their money on food. It is followed by clothes, accounting for 20% of the total consumption. Many teenagers prefer to buy iPhones rather than cool T-shirts.

The consumption habits of major consumer groups have changed, Abercrombie&Fitch It is not surprising that Co. has adjusted its brand. However, this does not mean that Abercrombie&Fitch Co. has abandoned the entire youth market. At present, the biggest adjustment is its flagship brand Abercrombie&Fitch.

As early as last year, the group disclosed that the transformation of consumer attention will be achieved through the main brand Abercrombie&Fitch of the same name. "Over the years, teenagers have become less fond of Abercrombie&Fitch's product line. We will let Abercrombie&Fitch have new categories, and the market and price adjustment will be aimed at slightly older college students." Jonathan, the group's chief operating officer and chief financial officer Ramsden said. In this quarter, Abercrombie brand sales decreased by 12% year-on-year to $340 million, and same store sales fell by 9%.

At the same time, another major brand of the Group Hollister We will continue to focus on low-end products, and use fast fashion strategies to attract consumers who once switched to Forever21. "Now it is necessary to make a greater distinction between the brands in the group. Let Abercrombie&Fitch take the high-end line, while Hollister lean on the fast fashion line." Jonathan Ramsden said, "For Abercrombie&Fitch, it helps it keep the tradition."

In addition, Abercrombie&Fitch's adjustment also includes that it no longer uses sexy naked men as marketing gimmicks.

Perhaps investors are still optimistic about Abercrombie&Fitch Co.'s change. Even if the group's net loss rose and net sales fell in this quarter, it was far lower than market expectations. Therefore, Abercrombie&Fitch Co.'s share price rose by 11.7% at most in the week after the release of the financial report.