Share on
HTML EMBED
Click to Copy
Marketplace Morning Report

Ohio is for lovers of smart transit

May 20, 2019

Latest Episodes

Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report

The age of fraud

May 17, 2019
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report

Abercrombie abandons logos to keep up with the trends

Queena Kim Aug 29, 2014
Share Now on:
HTML EMBED:
COPY

Abercrombie & Fitch, the retailer that’s known for its hunky models and clothes that scream “Abercrombie” says it’s ditching its logo. From now on, the retailer says its clothes will be logo-free, at least in North America.

It’s an odd twist considering Abercrombie helped create the demand for teen clothing with big logos.

Well, no surprise, teens are fickle, said Barbara Kahn, a marketing professor at Wharton.  

“In general, I think there is a trend that kids are not into logos as they once were because there’s more of an emphasis on showing your own individuality,” Kahn said, adding that it also depends on the logo – and right now Abercrombie’s is out of fashion.

Ronnie Moas, an analyst at Standpoint Research, says the the fast-fashion trend has created a big shift in the teen clothing industry and knocked Abercrombie off its perch. He downgraded the stock in early July. Moas said retailers like Forever 21 and H&M are putting out the newest fashions quickly and cheaply.

“At Abercrombie you’re paying $50-$60-$70 for a dress and at H&M it’s $20,” Moas said.

There’s no logo, so teens can mix-and-match and feel like they’re creating their own, individual style. While this is good news for young shoppers, it’s bad news for retailers, said Simeon Siegel, an analyst at Nomura.

“Leaving the brand premium means your pricing power probably erodes,” Siegel said.

Siegel said it’s not just Abercrombie that’s having problems, but all teen retailers that have relied on brands in the past.


How We Survive
How We Survive
Climate change is here. Experts say we need to adapt. This series explores the role of technology in helping humanity weather the changes ahead.