Developing a Global Vision

American Apparel's "Made in Downtown LA" slogan has made brand awareness of itself and it shows significant international diversity in retail sales. American Apparel has over 260stores worldwide in 19 countries. They exported sales of more than $200 million in 2008. Their major markets worldwide are London and Paris, and Asian market is also growing fast.

But, here is a question; is it really possible that their factories in Los Angeles can handle the supply for almost a thousand shops worldwide? don't they need mass textile production somewhere in Asia?

American Apparel's CEO, Dov Charney , kinda answered . He is eventually going to open a factory in China, but he's not going to change his ethical business mind; he's going to pay a US-dollar minimum wage to their workers in China. Well, for real?...

The Marketing Environment

 American Apparel focuses on young metropolitan adults (20-32) in major urban markets with disposable income as their target market. They think their customer are not influenced by broader economic trends because they does not have a mortgage, drive a car.
 In 2009, when economy officially was in recession, American Apparel knew that consumption patterns would possibly change; people would purchase more thoughtfully. American Apparel was not afraid of it because they were well-positioned for consumer economic environment in 2009 and beyond.
- Most of their products are versatile basics which are hardly affected by fast trends.
-Their products have good value for money ; quality clothing stays long.
- Their business model , vertical Integration, brings them easy inventory control so that they don't have to   worry about sales lost to stock outs during other companies are taking care of stocked goods by having dumping sales.

Ethics and Social Responsibility

'American Apparel is vertically integrated.'
To American Apparel, Vertical Integration has many meanings.

First, it means 'Made in USA'.
 They employs over 7,500 people at their LA-area factories alone. Their income makes the local economy better through their spending and taxes. Also, keeping their factories local makes them to create good jobs that support families and communities.

Second, Sustaninability.
  Vertical integration brings them to reduces the company's footprint because they don't have to ship thousands of miles from third party vendors. They have organic line called "Sustainable Edition" that they buy organic cottons from the Cleaner Cotton Initiative in California. In addtion, they lend bikes to employees to use them when they commute.

Third, charity- corporate resposibility

• In January 2010, American Apparel allocated and donated over 80,000 garments to support Haiti Relief. 20,000 pieces went to Fashion Delivers, 20,000 pieces to Operation USA, 15,000 pairs of socks went to Soles4Souls, among many others.
• In May 2010, they donated roughly 15,000 pieces to Soles4Souls for the victims of the Nashville floods that caused over $1B in damages. As a Tennessee based charity, they were first relief group on the scene.

American Apparel's ad campaign

American Apparel's competitive strength

Since their garment factories are located in Southern California, American Apparel can response to the market fast. They can get the products that are selling in stores right away.
Also, it makes them easier to keep high quality and inventory control- no markdown and less sales lost to stock outs.

American Apparel makes basic items which have no logos on and less graphics so that they don't have to Forecast fashion trends. Instead they make various color range that brings them a strong brand image.

When I think about American Apparel besides their clothing, their unique advertisement campaign comes up my mind. They don't use models for ads, but familiar images of employees and friends from around the world. It allows them to convey diversity and differ from other luxury brands.

In addition to the mission statement

American Apparel's main theme, "Made in Downtown LA", has contributed to distinctive brand recognition and cult status worldwide.

American Apparel uses a vertically integrated business model which creates good jobs in USA. Knitting, dyeing, sewing, photography, marketing, distribution, and design all happen in the facilities in Los Angeles.

my mission statement

As an early adapter, I would like to introduce American Apparel as a role model company.

American Apparel is famous for a unique advertising and product branding.

Familiar images of employees and friends from around the world—not models—allow them to express the diversity.

American Apparel has a special product branding method.  Most products are basics that are not easily influenced by trends. Also, they are flexible in product feedbacks because all facilities are located in downtown L.A.

about American Apparel

'American Apparel is an industrial revolution'


 American Apparel is a leading basics for young adults with both
wholesale and retail division globally. The company is a vertically
integrated manufacturer, distributor and retailer, based in downtown
L.A, California. Everything of American Apparel, which includes
design, manufacturing, marketing, accounting, retail and distribution,
happens in their facilities in L.A. Also, they operate the largest
garment factory in the U.S. The company is known for cutting-edge
advertising and product branding ; they have been awarded as Retailer
of the year at the 2008 Michael Awards, Label of the year (2008) by
The Guardian, and Marketer of the year at the LA Fashion Awards.