Amercian Apparel -largest clothing manufacturere in the US. It is a vertically integrated clothing manufacturer, wholesaler, and retailer that also performs its own design, advertising, and marketing. It is best-known for making basic cotton knitwear such as T-shirts and underwear, but in recent years it has expanded – to include leggings, leotards, tank tops, vintage clothing, dresses, pants, denim, nail polish, bedding and accessories for men, women, children, babies and dogs. -Who is the customer/ target market: specifically young adults, people of all ages company background: founded in Montreal, Quebec In 2000 American Apparel moved into its current factory in downtown Los Angeles where it continued to grow primarily as a wholesale business, selling blank T-shirts to screenprinters, uniform companies and fashion brands. -After its success as a wholesale brand, the company moved into the retail market. The company was ranked 308th in Inc. ‘s 2005 list of the 500 fastest growing companies in the United States, with a 440% three-year growth and revenues in 2005 of over US$ 211 million. demographics: -10000 employees 52% female, 48% male, median age if 25yrs -154 LA, 52 NYC, 17 Canada, 14 London, South America, Europe, Australia, Isreal, Japan, South Korea, China why they are successful or ways to do better: Company is known for cutting-edge advertising and product branding. Its “Made in Downtown LA” oeartion contributed to significant brand awareness and a cult status worldwide. American Apparel uses a vertically integrated business model which minimizes the use of sub-contractors and offshore labor.
Knitting, dyeing, sewing, photography, marketing, distribution, and design all happen in our facilities in Los Angeles -competitors: Competition for the clothing store industry includes department stores, discount stores, and Internet and catalog retailers -Fruit of the Loom -Urban Outfitters -Hanesbrands -SWOT S: -not to outsource its labor, paying factory workers an average of over $12 dollars an hour. -Garment workers for similar American companies in China earn approximately 40 cents per hour. claims to have the ‘highest earning apparel workers in the world’ -uses “team manufacturing” which pools the strongest workers towards priority orders. Each team functions autonomously and determines its own daily production schedule, giving them control over their own hourly wages. After its implementation, garment production tripled and required a less than 20% staff increase. The factory claims to have the capacity to produce 1 million shirts per week and manufacture 275,000 pieces a day. -hold many benefits -depends on environmentally friendly practices -vocal advocate for reform of U. S immigration laws
