American apparel
American apparel is a cloth retail store based in the country that, for some time, had gained significant popularity as the go to fashion store. The retailing store was especially popular amongst the youth, due to their targeted advertising and the fact that most of their clothing options suited the youthful age group. The company stuck to a largely colorful, flashy and trendy design for its clothing lines, which happened to coincide with the change in the fashion scene at the time of its inception to a more versatile and provocative fashion. The clothing store, however, has faced a host of challenges in recent years, filing for bankruptcy twice in the space of three years between 2015 and 2017 (Brooke, 2018). The downfall was largely owed to the scandals occasioned by the claims of sexual harassment brought about by their highly provocative and “over-sexualized” fashion style (Brooke, 2018). The company has been bought into by Gildan Active wear after the latest file for bankruptcy in 2017, and though it has retained its brand name and most of its clothing line options, some of its basic aspects have been altered (Brooke, 2018).
TOWS analysis
| Threats | Opportunities | Weaknesses | Strengths |
| · Competition from other established brands, as they have better distribution and marketing resources compared to the recently bankrupt American apparel. · Reduced work force, as the declared bankruptcy and the consequent external purchase of the company means significant staff lay off before the company stabilizes. · A recession, like that experienced late in the last decade, would mean unprecedented losses for the company, which is already in debt. · Large scale loss of customer base. The issues facing the company have largely been due to scandals, which could affect their market reputation negatively. | · Expansion of distribution and marketing networks. The recent partnership with Gildan Active wear, an established player in the apparel market means the company has additional resources to tap into. · Expansion of customer base. The company has largely been youth-centered; hence other groups have basically been left untapped, which could be done in the future. · Expansion into other countries. The company is mostly based in America, hence has a whole global market that could potentially be tapped into. · Increased partnerships. Partnership with Gildan means the company still has a significant pull on investors, presenting hence could partner and expand further. | · Accumulated loans. The declaration of bankruptcy by the company was owed in part to the high cost of loans taken by them to facilitate their operations. High debt means a significant amount of time taken to repay them before any progress is made. · Tainted market reputation. The company may never fully recover to the heights of success they enjoyed before due to the numerous law suits against them and the scandals they were involved in. · Adapting to the new distribution modes and networks made available by their partner company will slow down progress. | · Recognized brand. The American apparel brand is one of the most recognized in the U.S. market hence drawing in customers should not be an issue. · High quality products. The popularity of the company is owed largely to the level of creativity and the quality of final product, which ensures customer satisfaction. · The population of the country is largely in their youth, which is the target market of the company. · The company prides itself in its local manufacturing chain, which also enables the final products get to the market faster. · The unique designs offered up by their clothing chains sets them apart from their competitors. |
References
Brooke, E. (2018, September 25). American Apparel’s rebrand says a lot about life after bankruptcy. Retrieved July 2, 2020, from Vox: https://www.vox.com/the-goods/2018/9/25/17888594/american-apparel-melrose-store-relaunch?__c=1