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    American Apparel

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    Bilal Shabarek
    American Apparel was founded in 1989 in Montreal by Dov Charney. It is a vertically integrated manufacturer, distributor, and retailer of casual apparel based in Los Angeles. The company employs over 10,000 people globally and operates over 285 retail stores worldwide. American Apparel is committed to ethical manufacturing in the US and promotes environmentally friendly practices.

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    American Apparel

    Uploaded by

    Bilal Shabarek
    499 views13 pages
    American Apparel was founded in 1989 in Montreal by Dov Charney. It is a vertically integrated manufacturer, distributor, and retailer of casual apparel based in Los Angeles. The company employs over 10,000 people globally and operates over 285 retail stores worldwide. American Apparel is committed to ethical manufacturing in the US and promotes environmentally friendly practices.

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    American Apparel was founded in 1989 in Montreal by Dov Charney. It is a vertically integrated manufacturer, distributor, and retailer of casual apparel based in Los Angeles. The company employs over 10,000 people globally and operates over 285 retail stores worldwide. American Apparel is committed to ethical manufacturing in the US and promotes environmentally friendly practices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    499 views13 pages

    American Apparel

    Uploaded by

    Bilal Shabarek
    American Apparel was founded in 1989 in Montreal by Dov Charney. It is a vertically integrated manufacturer, distributor, and retailer of casual apparel based in Los Angeles. The company employs over 10,000 people globally and operates over 285 retail stores worldwide. American Apparel is committed to ethical manufacturing in the US and promotes environmentally friendly practices.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 13

    General Profile

    When? In 1989 by Dov Charney


    Where? Montreal, Quebec - Los Angeles, United States

    Products: casual clothing


    Revenues: US $58 million (2009)

    Net income: $1.1 million (2009)


    Employees: 10,000 (2008)
    History
    •Dov Charney started importing and selling men‘s T-shirts from the US.

    •In 1989, the company was named "American Apparel".

    •In 1990, Dov dropped out of university and began his manufacturing
    career.

    •In 1995, he started producing T-shirts for women.

    •In 1997, the company moved to Los Angeles.

    •In 2000, American Apparel moved into its current facility.

    •In 2005, it moved from wholesale into retail market as well.

    •In 2006, American Apparel mergered with Endeavor Acquisition Corp.

    •In 2007, American Apparel became a publicly traded company.


    Philosophy

    “American Apparel is an industrial revolution”

    American Apparel leverages art, design and technology to advance


    the business process, while continuing to pioneer industry standards
    of social and environmental responsibility in the workplace.
    Products
    Basic cotton clothing for men and women, both on the wholesale
    and retail level.
    “High-quality, fashionable, basic apparel with broad potential
    appeal”.
    Dressing style: casual
    Segments & Position in the market

    Target market: young metropolitan adults (20-


    32) in major urban markets with disposable
    income.

    Started with the domestic market, but now is


    growing into the international market.

    Price level: mass population.

    Competitors: H&M.
    Market

    Contries: United States, Canada, Mexico, Brazil, United Kingdom,


    Ireland, Germany, France, Belgium, Netherlands, Switzerland, Austria,
    Sweden, Spain, Italy, Israel, Japan, South Korea, China, Australia.

    Largest markets: New York, Los Angeles, London and Paris.


    Revenue and Growth

    Rapid and
    continuous growth
    from 2004 to 2008.

    Over 80 store
    openings in 2008
    Organization
    American Apparel is a
    vertically integrated
    manufacturer, distributor and
    retailer, based in downtown
    Los Angeles, California.
    They currently employ
    approximately 10,000 people
    globally (about 5,000 in LA),
    and operate more than 285
    retail stores in 20 countries.
    Key Factors
    •Cutting-edge advertising, and product branding.

    •Brand awareness and cult status worldwide.

    •Real people advertising.

    •“Made in the USA & Made in Downtown LA” a sweatshop free ethos
    and commitment to ethical manufacturing, a message that
    resonates with young people in urban areas.

    •Vertical integration.

    •Basic fashion style.


    Commitment to the community
    •American Apparel is one of LA's largest employers and the largest
    apparel manufacturer in the USA.

    •A business model that promotes sustainability.

    •The average salary for a sewing operator is more than $12 per
    hour, higher than other comparable companies.
    Commitment to the community
    •They promote environmentally-friendly practices, using solar
    power, recycling fabric scraps and utilizing organic cotton.
    •Philanthropy: they donate hundreds of thousands of garments to
    charities.
    Sources
    http://www.americanapparel.net/contact/environment.html

    http://americanapparel.net/verticalintegration/sustainability.html

    http://www.americanapparel.net/contact/ourworkers.html

    http://www.americanapparel.net/verticalintegration/made-in-usa-
    jobs.html

    http://www.americanapparel.net/verticalintegration/charity.html

    http://www.americanapparel.net/verticalintegration/political-
    activism.html

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