Profile of American Apparel: US Manufacturing and Strong Brand Recognition Bring Success

Profile of American Apparel: US Manufacturing and Strong Brand Recognition Bring Success


February 1, 2010
14 Pages - SKU: TXI2590914
License type:
Online Download      US $520.00
Country Wide License      US $1,560.00
Global Site License      US $3,120.00
Countries covered: United States

American Apparel is a vertically integrated manufacturer, distributor and retailer of non-branded basic fashion apparel based in Los Angeles, California, USA. It was founded as a wholesale business in 1998, and in 2003 it opened its first retail store and sales began to grow significantly. By the end of 2009 it was operating 281 retail stores in 20 countries. The company continues to run its wholesale business, and also operates an online retail e-commerce website.

In contrast to most other US clothing manufacturers and retailers—which tend to outsource production to countries with low labour costs—all of American Apparel’s manufacturing operations are in the Los Angeles metropolitan area. The company promotes the fact that its merchandise is “made in the USA” and “sweatshop free”. Wages are therefore much higher than the global average and, indeed, the company claims to employ the highest paid apparel workers in the world.

Instead of competing on the basis of low wages, American Apparel uses its US manufacturing base, coupled with a strategy of vertical integration, to offer quick response times and higher quality while maintaining tighter inventory control. This avoids the problem of being left with unsold stock and having to sell it off at a discount. In addition, the company is able to replenish stocks of popular styles at short notice, and this helps it to maximise sales.

American Apparel has proved successful in a market dominated by competitors who have substantially greater financial, marketing and other resources—such as Gap, Urban Outfitters, H&M, Uniqlo and Forever 21. It differentiates itself on the basis of the fit and quality of its garments, the broad variety of colours and styles on offer, its imaginative marketing campaigns, and its ability to fulfil orders, large or small, at short notice. Using its core strengths, it has increased its sales rapidly. In 2008 alone its retail sales grew by 62%. But in 2009, hit by the US recession and the global economic downturn, growth in its net sales was minimal, and its net income declined. Nonetheless, the company remains optimistic about the future, and is hoping to return to significant growth in 2010.



More Apparel Retailing reports by Textiles Intelligence

Trends in World Textile andClothing Trade, January 2013 edition by Textiles Intelligence
This edition in our flagship series of reports contains statistical data, information and insight on global textile and clothing trade. The report identifies key trends ...
Performance Apparel Markets: Business update, 3rd quarter 2012 edition by Textiles Intelligence
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories: acquisitions, divestments and mergers; company ...
Global Apparel Markets: Business Update, 2nd quarter 2012 by Textiles Intelligence
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; corporate social responsibility (CSR); financial results; international trade policy; ...
Global apparel markets: business update, 4th quarter 2011 by Textiles Intelligence
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; corporate social responsibility (CSR); financial results; international trade policy; ...
See all reports like this >>

More United States Apparel Retailing reports

Amazon Best Sellers Tracker: Apparel (United States, March 2014) by ResearchFarm Ltd.
Amazon Best Sellers Tracher: Apparel (United States, March 2014)Amazon Best Sellers Trackers are monthly reports published by ResearchFarm allowing to track the performance of top ...
US Denim Jeans Market Report: 2014 Edition by Koncept Analytics
US Denim Jeans Market Report: 2014 EditionThe US apparel industry is large, mature, and highly fragmented. This industry has stretched the boundaries of its creativity ...
Freedonia Focus on Apparel: United States by Freedonia Focus Reports
Freedonia Focus on Apparel: United StatesThis report forecasts US apparel demand and shipments in US dollars at the manufacturers' level to 2018. Total demand is ...
Clothing Stores by First Research, Inc.
Clothing StoresBrief Excerpt from Industry Overview Chapter:Companies in this industry operate physical retail establishments that sell clothing and accessories. Major companies include TJX Companies (TJ ...
See all reports like this >>

More United States reports

The 2013-2018 Outlook for Collagen and (hyaluronic Acid) HA-Based Biomaterials in the United States by Icon Group International, Inc.
The 2013-2018 Outlook for Collagen and (hyaluronic Acid) HA-Based Biomaterials in the United StatesThis econometric study covers the latent demand outlook for collagen and (hyaluronic ...
The 2013-2018 Outlook for Relish in the United States by Icon Group International, Inc.
This econometric study covers the latent demand outlook for relish across the states and cities of the United States. Latent demand (in millions of U.S. ...
The 2013-2018 Outlook for Indian Breads in the United States by Icon Group International, Inc.
This econometric study covers the latent demand outlook for Indian breads across the states and cities of the United States. Latent demand (in millions of ...
D&B Country RiskLine Report: The United States of America by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
See all reports like this >>