Elizabeth Segran, a senior staff writer at Fast Company, unpacks Abercrombie & Fitch's impressive comeback. She discusses how the brand has transformed from its controversial past to embrace inclusivity and diversity in its marketing strategies. Segran highlights the shift to appeal to a younger demographic and the importance of influencer partnerships. Listeners will find insights into the brand's evolution and the strategic pivots that have fueled its resurgence in the ever-changing fashion landscape.
Abercrombie & Fitch successfully transformed its brand identity by embracing inclusivity and diversity, moving away from its previous narrow focus on affluent teens.
The company's remarkable resurgence, marked by a 285% stock increase and $4 billion in revenue, highlights the effectiveness of adapting to modern consumer values.
Deep dives
The Rise and Fall of Abercrombie & Fitch
Abercrombie & Fitch emerged as a defining brand for American youth in the late 1990s, heavily influenced by pop culture and marketing strategies emphasizing exclusivity and sex appeal. Under CEO Michael Jeffries, the brand transformed from an outdoor clothing company to a hyper-sexualized retailer, focusing on a narrow demographic of affluent, predominantly white teenagers. This approach, coupled with a series of racist and exclusionary scandals, led to public backlash and a significant decline in popularity and sales, culminating in Abercrombie being labeled as one of the most hated retailers by 2016. The fallout included a Supreme Court case over discriminatory hiring practices, marking a low point that showcased the brand's misalignment with evolving cultural values towards inclusivity and diversity.
A Strategic Rebirth
Starting in 2019, Abercrombie & Fitch began a significant turnaround, appointing a new executive team and revamping its brand identity to appeal to a broader, more diverse audience. The updated marketing strategy diverged from its exclusive teenage roots to target young adults in their early 20s, who have nostalgic ties to the brand but were not fully aware of its recent controversies. Visually, the brand shifted towards inclusivity, featuring clothed models of various ethnicities and body types in advertisements, contrasting sharply with its previous marketing tactics. This repositioning aimed to cater to modern consumer desires for sustainability and inclusiveness, reflecting societal changes in values and priorities.
A Resurgence in Popularity
The revamped Abercrombie & Fitch has generated remarkable sales growth and improved public perception, emerging as a success story in the retail sector amid broader market struggles. In the previous financial year, Abercrombie's stock saw a staggering increase of 285%, becoming the best-performing stock on the S&P index, while achieving $4 billion in revenue with a 10% growth year over year. The brand's new strategy included the introduction of thoughtfully designed products that prioritize fit, quality, and versatility, catering to the fashion needs of their redefined audience. This resurgence serves as a testament to how heritage brands can adapt and thrive by embracing inclusivity and focusing on high-quality offerings amid the competitive retail landscape.
Fast Company’s senior fashion writer Elizabeth Segran explains how the company overcame a problematic history to pull off a renaissance in this rebroadcast of our episode from July.
This episode was produced by Amanda Lewellyn, edited by Amina Al-Sadi, fact-checked by Matt Collette, engineered by Patrick Boyd and Andrea Kristinsdottir, and hosted by Noel King.