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.
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