Abercrombie Now Available in China

The American brand Abercrombie & Fitch Co. has extended their products to Chinese consumers with the hopes to bring back revenue for the company. Abercrombie is now available in the e-commerce platform Tmall which is under Alibaba. This is not the first time that the retail brand has entered the platform because the teenage line has been present since and the kid's line was introduced this year. This retail decision is to help Abercrombie to reach to more consumers who are not able to visit the stores in China. Currently, the brand is also experiencing a slowdown in the US market which makes the e-commerce move quite critical. Abercrombie has been starting with potential acquiring from other brands but it is still pending because of the current plan that will bring more revenue to shareholders if it succeeds.

Tmall has welcomed Abercrombie since it has been an established and well-known brand in the world. It is iconic and further growth in the international market would possibly result in greater sales. Open trading was also a move that the brand considered and there was an increase of at least 1 percent since. However, the overall sales decreased 3% from the stores outside the US. The Chinese market was targeted since it can potentially reverse the current sales status for Abercrombie. Considering that the consumers in Alibaba are within the target age market and that the interface of Abercrombie would fit the updates. Also, the current consumer generation is into placing orders online which has also been adapted and one of the changes done by the retailer. The shareholders are quite skeptical of the direction of Abercrombie since it is a big risk. Since the changes in the US Abercrombie were performed, the loss in shares amounted to 20% of their value. The management of Abercrombie has been advised to buy back the stocks and reduce the share count as a result of the changes and as preparation for the sales performance that is set to be improved. The plans that the retailer has lined up for the brand is promising. The Chinese consumers have been one of the most successful markets. Additionally, the availability of Alibaba as the e-commerce platform in China makes transactions accessible and easier. The vast amount of online shoppers alone could create a positive impact on the revenue of a brand. Proper marketing strategies and promotions can raise awareness with the line of products for Abercrombie. The extension of the kids and adult lines make it more attractive to the market. The American brand may be struggling as a whole but it has created and put into action plans that retain their independent status.

American brands in China usually fair well despite the history of trade and business conflicts. One of which is the Nanking Massacre which affected civilians in China including Americans who are only in the country for business. This situation happened decades ago but still, has affected current relations between China and the US. Trade has encountered some difficulties, and some products manufactured in China are faced with a negative impression in the US market. It may include other factors but since China was able to stand as a powerful economy, more investors look after their consumers.

The strategy and approach of Abercrombie are to become more visible to a greater market and have easier access to consumers. Its biggest competitor is American Eagle Outfitters Inc. and Abercrombie has shown interest in adding more line of products to their own range. While there are improvements in store operations such as music and aroma, the extension of e-commerce is also expected to pay off for Abercrombie.
Share on Google Plus

About Jhon

I am professional blogger share guide about WordPress, blogging tutorial, seo techniques, making money from blog and getting traffic to the blog.
    Blogger Comment
    Facebook Comment