ABERCROMBIE

& FITCH
Group 5
Trần Tuấn Hải – 2D19
Phan Thị Hoài – 2D19
Đỗ Nguyễn Thu Hương – 2D19
Phạm Ngọc Linh - 4K19
 Goals

Goal 1 Goal 3

COMPANY INTRODUCTION & LESSON LEARNT

SITUATION

Goal 2 Goal 4

COMPANY CASE SIMILAR CASE

 01COMPANY
INTRODUCTION AND
SITUATIONS
 Introduction

- Founded: June 4, 1892

- Founders: David Thomas
Abercrombie & Ezra Fitch
- Headquarters: New Albany, Ohio
- Area served: worldwide
WEBSITE: abercrombie.com
 Case Analysis

1. Basic Information
American specialty retailer
Focus on casual fashion for the youth
Used to be potential luxury brand
Promise : having the “all- American” experience in its flagship
stores
 Case Analysis

2. Company Situation
Not succeed for long in Japan
Dominated by less expensive stores like Uniqlo and fast-
fashion brand like Spain’s Zara & Sweden’s H&M
Facing challenge in USA: less relevant to the youth than
before
 Case Analysis

3. Problems
Strict dress code & “sexualized” marketing strategy
Cultural discrimination
The boom of low priced fashion brand -> charge shoppers
Staff : foreigners (American)
Store : unsuitable outfit, too loud music, too much perfumes,
big logo on products
 02
COMPANY CASE
 COMPANY CASE
Answer the questions
Based on the consumer behavior, how do you think A&F should
01 approach its plan to extend in China?

Research and analyze the US and Japanese consumer market

02 and consumer preferences. Explain how you think A&F can win
Japanese consumers over without compromising on what the
brand stands for?

What lifestyle and personality characteristics should A&F

03 consider as it enters in new Asian market?
COMPANY CASE
Question 1: Based on the consumer
behavior, how do you think A&F should
approach its plan to extend in China?

1. Market Penetration
● Advertising via social media (Weibo, Tiktok, ….)
● Cooperating with Shopping Website (Taobao,
Tmall,..)
● Customer service: sale advisors
● Online-to-offline (O2O) marketing
● Affordable price

2. Product Development
● A&F’s apparel has to suit their body physique
● New products: Matching sets, Skincare and
cosmetic products
COMPANY CASE
Question 2: Research and analyze the US and Japanese
consumer market and consumer preferences. Explain how you
think A&F can win Japanese consumers over without
compromising on what the brand stands for?

Japan’s market potential:

● the third largest economy in the world
● GDP: USD 43,235.718 (2019)
● The household net - USD USD 29 798 a year (2019)
● Japan’s consumer confidence - 44.5 index points
(FocusEconomics, 2017)
COMPANY CASE
Question 2
American customer preference
● Individualistic cultures → seek products that give the image of being successful
● Latest trend pursuit
COMPANY CASE
Question 2
Japanese customer preference

● Great quality and affordable price

● Brand consciousness and price-sensitiveness
● Politeness and respectness (loud music, sex
appeal and strong scent is not appreciated)
COMPANY CASE
Question 2
Recommendations For A&F in
the Japan Market
1. Advertisement Strategy: use Japanese models, change
advertising content.
2. Emphasis on Quality
3. In-store Experience
4. Chatbots on A&F website
COMPANY CASE
Question 3: What lifestyle and personality characteristics
should A&F consider as it enters in new Asian market?
1.Lifestyle characteristics:
- Spend less, save more ← middle class, medium level of income
- Spending behaviors
● Set aside 18% of their income for savings
● Spending 28.3% on their basic expenses
● 49.2% of young adults in Asia shop online at least once every week
(NTU, 2013)
- Care more about quality rather than quantity
+ Quality: Long-used duration
+ Quantity: ← medium level of income
COMPANY CASE
Question 3: What lifestyle and personality characteristics
should A&F consider as it enters in new Asian market?
2. Personality characteristics:

- Blend of traditionalism and

modernity:
+ Traditionalism: affected by family,
parents
+ Modernity: Up-to-date, follow trend
from other countries
- Reliable: high brand loyalty

→ Recommendations: focus their

marketing efforts on mobile and social
media
 03
LESSON LEARNT
1) Research on positioning market
(culture, consumer behaviors)
2) Be flexible in marketing strategies
among different markets
 04
Similar Case:
UBER’S FAILURE IN
VIETNAM
(regardless of Grab’s acquisition)
 I. Introduction
- An international network
transport company
- Founded in 2009 by Garrett
Camp & Travis Kalanick
- Used in around 64 countries
 The disappearance of Uber in
Vietnam

2016 - early 9/2017 End of 2017 2018

2017

Traditional drivers Uber was charged Rumors about Uber Sold

protest UBER + 3 with tax arrears of would stop their Asian
region association nearly 67 billion business in VN market to
recommend an VND Grab and
emergency stop the app
stopped
working
 Reasons

Carelessness in Market
01 Research 03 Brand Identity

Grab’s
02 Lack of Customer Needs 04 Acquisition
 Similar case:
UBER’S FAILURE IN VIETNAM
(regardless
(regardless of
of Grab’s
Grab’s acquisition)
acquisition)
*An acquisition occurs when
*An acquisition occurs when one company buys
one company buys most
most or
or all
all of
of another company's shares.
another company's shares.
 Boss, there is a
traffic jam but
I’m in an Uber…
Þ Affect Perception factor in
Psychological characteristic of
consumer behaviors.
 CUSTOMER’S CUSTOMER’S
AWARENESS INTEREST
A&F UBER A&F UBER
“All - American” “We’re in the business, Culture barrier Non-cash payment,
today, of delivering cars through language served only taxicabs
in five minutes. But once barrier, clothes and used to not
you’re delivering cars in exposing too much have motorbike
five minutes, there’s a lot skin, loud music… served.
of things you can deliver
in five minutes.”
Infamous Focused on
Did not meet the need of Focused on providing impression towards attracting customers
fast fashion in Japan and what they had, not what

Why is this case

the customers. but not on serving
even in U.S; price is not the customers needed them. Much other
suitable. (ice -cream delivery...) demands need to
Þ Both AF and UBER faced deliver first

similar?
threats of rivals.
(transporting fast,

CUSTOMER’S
cash-payment...)

EVALUATION AND TRIAL

A&F UBER

Have done well in Have done well in

Shanghai. other countries
(maily not in
Southest Asia).
Þ It shows that both A&F and UBER have
not researched and investigated deeply
on other countries’ standard of living,
customer needs, and the characteristics
that affect consumer behaviors.
 Recommendations for Uber

Sell not only what they have

Research carefully on but what customers need.
consumer habits and their
living standards.

Be more adaptable and flexible

Focus on serving, not only
towards the diversed countries
attracting customers.
and regions.
THANK YOU
Do you have any questions?

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