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.

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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.


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