Abercrombie and Fitch is a retail chain lifestyle clothing and fashion American company. David T. Abercrombie and Ezra Fitch started the retail chain clothing company in 1892. Today, we’ll discuss the SWOT analysis of Abercrombie and Fitch; it outlines strengths and weaknesses; opportunities and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Abercrombie and Fitch
- Shoes and footwear
- Fashion accessories
- Clothes
- Personal care items
Industry-focused area of Abercrombie and Fitch
- Retail
- Clothing
- Lifestyle Fashion
Statistical facts and figures of Abercrombie and Fitch
- Market capital – 6.32 billion USD (2023)
- Ranking – 2285
- Annual revenue – 4.02 billion USD (2023)
- Net income – 0.33 billion USD (2023)
- Asset net worth – 2.89 billion USD (2023)
Competitors of Abercrombie and Fitch
- Target
- Levi Strauss
- J Crew
- Hollister
- Forever21
- American Eagle Outfitters
- Macy’s
- Madewell
- PacSun
- DSW
- Delta Apparel
The SWOT analysis of Abercrombie and Fitch would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Abercrombie and Fitch SWOT analysis as a business strategy analysis example company as follows;
Strengths of Abercrombie and Fitch
Some of the main internal strengths in the Abercrombie and Fitch SWOT analysis example company as business strategy analysis are as follows;
Large Retail Network
Abercrombie and Fitch have established a very large retail chain store network comprising more than 1100 outlets in various countries; out of which, 300 of them are in the US. The large network of retail stores helps to immediately make its fashion clothing available to the end customers after launching them.
Global Market Reach
Abercrombie and Fitch is running its business in the global market and offering fashion clothing, apparel, shoes, footwear, and accessories to customers across the world. The global market reach helps the company to strengthen its market position and brand value. However, it means that the company is launching fashion designs and styles for different cultures.
Diversified Portfolio
Abercrombie and Fitch has developed a very large product comprising a wide range of fashion products and services. It helps the company to target various segments of the customers. In fact, the retail chain lifestyle brand has divided its business into four categories of products, and they’re as follows;
- Gilly Hicks
- Hollister
- Abercrombie Kids
- Abercrombie and Fitch
Marketing
Abercrombie and Fitch launch various types of marketing campaigns in-store and out-store, media channels, social media, and digital marketing campaigns. The objective of all of these campaigns is to offer a wide range of amplify the company’s customer market and increase its sales. In fact, the lifestyle is highly creative in its marketing and promotional campaigns, and they surprise the customers with a sense of wonder.
Unique In-store Experience
In order to further attract the attention of customers, Abercrombie and Fitch offer a unique in-store experience. It comprises of mesmerizing scent, light background music, attractive lighting, and cooperative sales staff to increase the conversion rate.
Casual Clothing
Abercrombie and Fitch offers a very large collection of casual clothing for men, women, kids, and teens. In fact, the company has some subsidiary brands and their focus is on offering a variety of casual clothing.
Weaknesses of Abercrombie and Fitch
Some of the main internal weaknesses in the Abercrombie and Fitch SWOT analysis example company as business strategy analysis are as follows;
Limited Market Share
Abercrombie and Fitch has limited market share if you compare it with other lifestyle and fashion brands. The limited market share shows the company’s limited geographical presence in the global market. As a result, it limits the company’s growth, revenue, and profitability.
Discrimination Practices
The Gonzalez class-action lawsuit found the lifestyle brand Abercrombie and Fitch guilty of implementing discriminatory employment practices by not recruiting African American, Asian, and Latinos. However, the company settled the case for 40 million USD and agreed to revise its discriminatory practices.
Opportunities for Abercrombie and Fitch
Some of the main available opportunities in the Abercrombie and Fitch SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Abercrombie and Fitch should expand its market and enter geographical regions and markets like Asia, Africa, China, and Africa. They hold significant growth potential with rich cultural diversity for the lifestyle fashion of the company.
Fast Fashion
The fashion industry and customer market are moving towards fast fashion that focuses on immediate production, lower stocking, and limited wastage. It is a highly business and environmentally friendly practice and the company should implement it in its operational areas.
Recyclable Material
The customer market has become highly cautious about the materials companies use for the production of their apparel and footwear. Abercrombie and Fitch should employ recyclable materials for the production of lifestyle fashion products and accessories. They have a limited waste on the environment.
Threats to Abercrombie and Fitch
Some of the main potential threats in the Abercrombie and Fitch SWOT analysis example company as business strategy analysis are as follows;
Changing Customer Market Trends
The customer market trends in the lifestyle and fashion industry keep changing over time. It poses a significant challenge to the lifestyle brand Abercrombie and Fitch to invest in artistic innovation and creativity. However, missing the trends would kick the brand out of the fashion industry, it is ruthless competition.
Counterfeit
There are various counterfeit cheap producers and manufacturers, and they counterfeit and copy the fashion designs and styles and produce cheap copy products. When customers buy Abercrombie and Fitch’s products by considering them original, then they create a negative perception of the company.
Conclusion: Abercrombie and Fitch SWOT Analysis Example Company |SWOT Analysis of Abercrombie and Fitch |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Abercrombie and Fitch; we have realized that Abercrombie and Fitch is the world’s leading retail fashion brand. If you are learning about Abercrombie and Fitch SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
