AA Bought By Gildan Is Resurrected By Online Stores.

According to the world clothing and shoe net, in the last one or two months, almost every day can be heard and seen.

News of the closure of the physical store.

Although it has been Canadian apparel manufacturer

Activewear Inc. Gildan (hereinafter referred to as Gildan) acquisition, but how to see, this brand is not like a new look.

Previously, the only

The news about pformation is that Gildan decided to pfer part of the American Apparel production line to lower labor prices in Central America.

We mentioned in related reports that in the acquisition of Gildan, all retail stores of American Apparel have never been included in the acquisition scope. Gildan values the knitting technology of American Apparel. Therefore, compared with respect for the spirit and image of "made in the United States" that American Apparel has always insisted, Gildan cares more about how to control the cost of brand and reduce losses.

In the first quarter of fiscal year 2017, which was released in May 4th, the Gildan finally introduced the latest reform of American Apparel at a time when the company recorded a record profit growth of 32%.

According to Gildan Activewear Inc. CEO Glenn Chamandy, the company is now designing a new flagship store for American Apparel.

The online store is expected to be launched in the summer of 2017, only for retail customers, and the T-shirt online shopping website for wholesale customers has been launched online earlier.

Chamandy did not disclose more information about the flagship store. It also said that the company had not made any decision about the re layout of offline stores.

But it may be in response to the recent news that American Apparel has made a lot of doubts about the withdrawal of its production from the US mainland. Chamandy specifically mentioned that in the new online stores, customers can see "American made" and "non American made" shopping options on the purchase page of some products.

In other words, brands give customers the option of insisting on "made in the United States".

So far, the American Apparel products made in the United States still come from the birthplace of brand Losangeles.

Instead of American made products, it now comes mainly from Gildan's two factories in central Honduras and Nicaragua.

The former will sell 25% higher than the latter.

"Some customers really want to buy products made in the United States, so we have to pay attention to the needs of these customers," Chamandy said at the earnings conference.

In fact, Gildan sees more market opportunities than this.

From the perspective of global market, the US market and the non US market also hold different attitudes towards "made in the United States".

"A large part of the growth of (American Apparel) will come from outside the US market."

Chamandy said.

He pointed out that the European and Asian markets will be the market that Gildan Activewear Inc. wants American Apparel to focus on, and there is no obvious advantage in these markets for "made in the United States".

On the whole, Gildan's strategy for American Apprel's split strategy is quite sensible.

On the one hand, starting from the brand gene, "made in the United States" will still be the most recognizable brand characteristic of American Apparel, and giving up is a pity.

At the same time, the adoption of this production strategy in the US market can also better cope with the possible "Trump tax reform" and find a foothold for participating in the competition in the US market.

From a global operation perspective, controlling costs from the production end and lowering the selling price can help brands enhance competitiveness in the global fashion market.

After all, when the fast fashion brand is in the limelight, it is hard for a brand that is hard to bring forth new ideas and often has high prices.

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