Perhaps you remember last May
when comments made by Abercrombie CEO Mike Jeffries resurfaced online from a
statement that he made in 2006, stating that he is not interested in “fat” or “not-so-cool
kids” wearing his clothes. Many believed that Jeffries had committed
business suicide and predicted that it wouldn’t be long before Abercrombie
stores across America started closing their doors, leaving nothing but chiseled
mannequins, boyfriend sweaters, and the faint smell of Woods cologne and echoes
of techno music behind in an abandoned rental space.
So why then, as students head
back to school and consumers hit the stores for end-of-the summer sales, are
the telltale bags featuring pensive male models still abundant in malls across
America? The answers are in the numbers.
To back up a bit, on May 3, 2013, a Business
Insider article discussed how the retailer doesn't
stock XL or XXL sizes in women's clothing, apparently because they don't want
overweight women wearing their brand. According to Jeffries, “In every school there are the
cool and popular kids, and then there are the not-so-cool kids,” he told the
site. “Candidly, we go after the cool kids. We go after the attractive
all-American kid with a great attitude and a lot of friends. A lot of people
don’t belong [in our clothes], and they can’t belong. Are we exclusionary?
Absolutely."
Jeffries defended his statements are part of his business strategy- a strategy that hinged on the exclusivity of the brand. "Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don’t alienate anybody, but you don’t excite anybody, either.”
For the
first two weeks of May, the Internet responded in stereotypical fashion.
Bloggers cried out in outrage. One man started a campaign to encourage the
public to give their Abercrombie clothes away to homeless people. Celebrities such as Kirstie Alley and Ellen
Degeneres spoke out against Jeffries and the brand.
According to YouBrand’s
index, Abercrombie’s consumer perception and reputation plummeted, as shown in
the graph below:
The brand index, which
measures positive versus negative feedback about a brand, shows that positive
perception of Abercrombie and Fitch dropped after the statements were released.
The other two brands, American Eagle and H&M both carry larger sizes for
women.
One of
Jeffries most outspoken critics, plus-size blogger Jess Baker, shown below,
mocked Abercrombie’s policy by posing in one of their men’s shirts, in an
attempt to demonstrate that women of all sizes can be beautiful.
While no one is debating Ms.
Baker’s assertions that beauty comes in all shapes and sizes, the reality is
that despite the public outrage, Abercrombie didn’t suffer. In fact, it
thrived. The graph below shows
Abercrombie’s stock prices actually rose in the weeks following Jeffries’
statement while competitors American Eagle and H&M remained stagnant.
What the data shows us is
that while 18-34 year old consumers publicly decried Abercrombie’s stance on
exclusivity, someone was stocking up on graphic tees from America’s most hated
retailer. And unless Abercrombie suddenly began targeting the cruise ship
demographic, it’s highly likely that the same group of millennials who were
publicly tweeting about the injustice of the upscale retailer were secretly
sneaking into the dark store to buy a few pairs of Classic Straight jeans.
According to Mark, a 27-year-old man from Colorado, the exclusivity of
Abercrombie is one of the many things that attracts him to the brand.
“It’s good quality stuff and
not everyone can wear it,” he states. “If I wanted to wear something everyone
else could, I’d go to Wal-Mart.”
While Mr. Jeffries and
Abercrombie may have lost quite a few Twitter followers, the joke is apparently
on us. With second quarter earnings just released, Abercrombie’s strategy of
brand exclusivity might just have worked, as Abercrombie’s second quarter
earnings were announced August 23, showing that sales increased from the first quarter
of the year by about $106,929,000. By
all indications, Abercrombie is poised for another year of positive growth,
especially as it continues to open stores in China.
Just don’t expect Mr.
Jeffries to be invited on Ellen anytime soon.
For a little bonus laughter
at Abercrombie’s expense, check out this vintage MadTV episode:
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