Posts Tagged 'Levi’s'

Abercrombie’s two-tier pricing strategy

A&F apparently prices its goods one way for the domestic market, another way in its overseas stores. From a recent RetailWire post:

I think the overseas pricing strategy is appropriate as long as A&F can get away with it. After all, several other American brands (Levis, for example) have a completely different cachet in foreign markets than in the U.S., and can price their goods accordingly. Obviously A&F’s offshore sales did not suffer to the same degree post-recession as they did in the U.S. — but I am also assuming these stores represent a relatively small percentage of their sales, although the WSJ article didn’t make it clear.
On the other hand, A&F’s initial refusal to budge on its price position in the U.S. (while almost all of their competitors recognized the “new normal” after 2008) is practically a case study in how to sacrifice responsibility to one’s shareholders at the altar of brand equity.


Donald Fisher’s legacy at The Gap

While it’s apparent that Mickey Drexler took The Gap to a new level, Donald Fisher deserves an enormous amount of credit for having the vision in the first place. He saw an opportunity to develop a business model tailored to fit the rapid expansion of regional malls during the ’70s and ’80s. He created one of the first specialty retailers filling a niche (or “gap”) that was being neglected by traditional department stores; in a very real way, The Gap was one of the earliest “power retailers” although not in a big-box format. And, finally, he understood the strength of branding: Even though The Gap began as a Levi’s “headquarters,” eventually the brand image of the store became bigger than the sum of its parts.