Exclusive to Inclusive: An Abercrombie & Fitch Case Study
The dramatic rise and fall of Abercrombie & Fitch offers a compelling case study in brand mismanagement and the delicate balance of public perception. From being the epitome of American youth culture to facing widespread backlash, the brand's journey underscores the importance of aligning values with consumer expectations. By analyzing the factors that led to its downfall and the strategic steps taken to rebuild its reputation, this case study delves into the challenges and triumphs of restoring trust with stakeholders. Abercrombie & Fitch was able to turn its outdated and out-of-touch persona into an inclusive and consumer-centric company by restructuring leadership internally, identifying and changing the brand vision which stood on exclusivity, and placing a brand-wide emphasis on diversity and inclusion, including sizing and hiring practices.
Company Overview
In the 1970s, the brand was faced with financial struggles and decided to reevaluate its products in order to reach a broader customer base. However, despite these efforts, the brand was purchased by Oshman’s Sporting Goods before being sold to The Limited in 1988 (About ANF). The Limited hoped to reenvision Abercrombie & Fitch to meet the changing needs of the retail market. CEO Michael S. Jeffries led A&F into the casual luxury sector, focusing marketing on middle and upper class White teens and young adults. The brand became the epitome of exclusivity and a symbol of status for American teenagers (ECJ 19 July 2017, case C-143/16 (Abercrombie & Fitch Italia Srl), age discrimination).
By the early 2000s, Abercrombie & Fitch had become one of the most notable and recognizable brands in the United States, known for its easily identifiable shirtless models and sensual store atmosphere . The iconic photos were contributions of Bruce Weber, a popular 2000s photographer known for his provocative style and history of sexual abuse (Chen Case study: Abercrombie & Fitch's brand reinvention). With the company’s persona resting on unattainability and recognition of the clothes’ logos, it wasn’t until the rise of the 2010s that the media and A&F customers became critical of the promiscuous advertising and tired of the same moose logo they’d been seeing for years (Rebuilding Abercrombie & Fitch: From exclusion to inclusivity). Comments made by CEO Mike Jeffries were made public, shaming certain body types for not fitting the “Abercrombie image” which deterred many shoppers from returning to the stores (Has Abercrombie & Fitch's CEO really made a 'big, fat, marketing mistake'?). These comments, along with the already-sleazy reputation of the brand’s point photographer, Bruce Weber, brought to light the failure of Abercrombie to place emphasis on what society decided was important. In 2016, when the company was named “the most hated retailer” in the United States, it became apparent that the brand could not continue in this manner or Abercrombie & Fitch would become a fad of the past (Fierberg).
While change begins at the top, it was only right that Mike Jeffries step down, and in 2017, Fran Horowitz was hired as CEO (How abercrombie & fitch went from proudly exclusionary to surprisingly inclusive - the Washington Post). Horowitz, intent on reenvisioning A&F and putting the brand back on the retail map, began by establishing four pillars for the brand to rebuild around: “Making customer feedback the highest priority of all teams, identifying a specific brand purpose to plan products and transform them into versatile, style-forward pieces with a reputation for quality, breaking down internal silos to improve collaboration and innovation, and targeting an older demographic and embrace e-commerce strategies to grow online sales,” (How abercrombie & fitch went from proudly exclusionary to surprisingly inclusive - the Washington Post).
A&F Mission and Purpose
Since the hiring of Horowitz, A&F has expressed commitment to the new mission and purpose provided by the insightful and change-driven CEO. A&F describes its corporate purpose as “being here for you on the journey to being and becoming who you are,” and that it is “committed to offering products of enduring quality and exceptional comfort that allow our customers around the world to express their own individuality and style,” (About ANF). Compared to the exclusive nature and emphasis on conformity of the brand’s previous mission statement, A&F has shifted towards a focus on individual needs and expression, coinciding with the societal shift towards acceptance of these ideals. The revamped mission statement expresses a sincere and active drive to create an environment of acceptance for A&F customers.
“Our intention is to create a sense of belonging, empower all voices, generate funding, and support our key impact partners’ missions of providing equitable access to mental health services, education and resources,” (Purpose). The A&F mission also now includes a segment expressing dedication to its stakeholders and the values these stakeholders stand for, such as mental health awareness and education. By placing value on the needs of customers, investors, etc., A&F was able to take the first steps towards reestablishing trust and transforming its reputation. Additionally, the products sold during this new era of A&F reflect a sense of pride in appearance and an acceptance of all shapes and sizes. Horowitz wanted to appeal to the young adult demographic, while refraining from creating clothes to be worn to the office (How abercrombie & fitch went from proudly exclusionary to surprisingly inclusive - the Washington Post). Not only did the quality of the clothing skyrocket, but new denim options were developed to include alternatives for curvy body types, called “Curve Love.” This revolutionized style denim is “the viral fit that eliminates waist gap with additional room through the hip and thigh,” (Women's curvy jeans & Denim: Abercrombie & Fitch). By Modifying previously popular styles to reflect the needs and desires of consumers, A&F is aligned with its current values of accommodating individuality and supporting body positivity.
Situational Analysis
Despite the internal sabotage done by Abercrombie & Fitch to its reputation, there were many outside factors which led to the demise of the once-popular clothing brand. Towards the end of the 2000s, consumers began placing a larger emphasis on the importance of diversity and sustainability of brands they purchase from. Because of A&F’s focus on the opposite of this, along with the company’s refusal to evolve its habits, consumers began looking for their new favorite brand. The body positivity movement moved swiftly to social media and soon began infiltrating brands across the market. By 2014, A&F was listed as #2 in 24/7 Wall St.’s “10 Most Hated Companies In America,” (Brand rankings). However, it was not only the brand’s inability to allow inclusive sizing and product ranges for consumers, but the use of the A&F logo and symbols on seemingly every product coupled with the tarnished reputation the logo embodied, left a bitter taste in the mouths of consumers (Rebuilding Abercrombie & Fitch: From exclusion to inclusivity).
Additionally, as the reputation and allure of Abercrombie & Fitch diminished throughout the 2010s, the rise of fast fashion companies like Zara and SHEIN left the brand far behind its competitors and unable to keep up with the constantly changing trends. The nature of fast fashion is staying up-to-date on fleeting trends while remaining at a very low cost for consumers. A&F’s high prices and consistent style shifted consumer attention towards these fast fashion brands (West, Abercrombie & Fitch Co: A comprehensive SWOT analysis). Even though the practice of fast fashion skyrocketed in popularity, a societal shift towards environmental sustainability allowed Abercrombie & Fitch the opportunity to embrace sustainable practices to improve its appeal to consumers.
Lastly, the oversexualized nature of A&F’s advertising became outdated and misaligned with the inclusive, body positive shift happening in the market. The signature black-and-white images of shirtless men and minimally dressed women plastered on A&F shopping bags were spotted more and more sparingly until the promiscuous advertisements were eventually discontinued (Chen, Case study: Abercrombie & Fitch's brand reinvention). The brand primarily utilized print advertising and mailing catalogs in an era when social media was becoming the primary mode of communication with younger generations. Abercrombie & Fitch needed to re-envision its brand and target audience in order to regain its status and flourish on social media.
Reputational Analysis
Prior to the company restructuring and overall rebrand, A&F’s reputation was in a downfall, with stakeholders disappointed in the brand’s actions and unable to defend the overly sexualized marketing. The media described the Abercrombie persona as exclusive and preppy, but promiscuous and “white-centered”, both concepts becoming increasingly unethical in modern society. In 2022, Netflix released a hard hitting documentary, “White Hot: The Rise and Fall of Abercrombie & Fitch”, that divulged the details leading up to the brand’s demise in the early 2010s. The documentary explained the varying sales tactics, such as exaggerated and sexual clothing marketed to teens and the rejection of all that was not “All American,” (Has Abercrombie & Fitch's CEO really made a 'big, fat, marketing mistake'?).
Despite the strong brand awareness, logo recognition, and unique store experience, A&F was also falling short through its obscene lack of diversity and discriminatory practices. Many potential employees reported being denied retail positions for “lacking the Abercrombie look”, meaning they didn’t fit the upper-middle class, White teenage demographic so coveted by early A&F. The brand eventually faced lawsuits claiming unfair hiring practices, and some claimed once hired by Abercrombie & Fitch, they were forced to work in the stock room instead of the sales floor to avoid disrupting the carefully curated aesthetic (Has Abercrombie & Fitch's CEO really made a 'big, fat, marketing mistake'?).
Even the clothing designs reflected the racist ideals held by the brand, with former employees reporting one graphic tee sold with the words, “two Wongs can make it white,” showing clear aggression towards the Asian community (Has Abercrombie & Fitch's CEO really made a 'big, fat, marketing mistake'?). Without admitting any fault by the brand, those engaged in the class action suit were granted $50 million by the court and Abercrombie & Fitch was forced to engage in internal diversity practices. At this point, it was clear to stakeholders and the media that A&F’s values were rooted in discrimination, with evidence present in hiring, marketing and product manufacturing. Original A&F sizing in women’s pants only went up to a size 10, with the average American woman fitting comfortably in a size 16. The non-inclusive size options were not unfamiliar to the early 2000s craze of being offensively skinny, with other companies like Brandy Melville continuing to design their products this way. However, this tactic was unable to remain present in the A&F brand because of the many other discriminatory values in place (Lessons from the rise and fall of Abercrombie & Fitch | Inc.com). Abercrombie & Fitch had officially lost the trust of its consumers, through its rejection of inclusivity and diversity, its stakeholders, by refusing to adapt to the changing retail landscape, and its employees, by creating an environment of homogeneity and racial superiority.
Key Stakeholders
In order to regain trust among all parties involved or interested in the success or failure of Abercrombie & Fitch, the company needed to identify all stakeholders affected by its reputational downfall and make amends. In efforts to repair relations with stockholders and investors, A&F released a new statement of corporate governance stating, “The foundation of our corporate governance program is providing transparent disclosure to all stakeholders on an ongoing and consistent basis, with a focus on delivering long-term stockholder value,” (Corporate governance). A focus on transparent communication with stakeholders and instilling values coinciding with those of the stakeholders is essential and necessary to regaining their trust and garnering brand loyalty. A&F also promised to commit itself to sustainability, education, and mental health awareness, as each are principles of importance to the stakeholders (Purpose). A&F utilized different methods of community outreach to further the notion that these values are of importance to the brand. The Challenge is a music festival sponsored by A&F to raise money for mental health organizations, which partners with several organizations focused on the same mission. Additionally, A&F is fulfilling its commitment to both stakeholders and society at large by partnering with The Trevor Project, a suicide prevention organization for LGBTQ+ individuals (Purpose). This year, Abercrombie & Fitch will donate $400,000 to the organization, bringing the total donated amount to $5 million.
A commitment to sustainability, as held valuable by consumers and stakeholders, has also been emphasized through the A&F rebrand. Since 2019, A&F has saved over 190,300,000 gallons of water through renovated production methods, and it has replaced synthetic, unsustainable materials with cotton produced by Better Cotton, a sustainable cotton production company (Purpose). Through showcasing a commitment to the values held by A&F stakeholders, the brand has shown a transition from its past purpose to an evolved, consumer and stakeholder-centric structure that the parties involved now feel they are able to trust.
A&F partner companies such as Hollister and Abercrombie kids also have a stake in the success or demise of the brand and are dependent on the reputation of the overarching company. Under the leadership of Fran Horowitz, A&F has placed the new umbrella of company values over each underlying brand in order to further emphasize the importance of a consistent brand across each branch of the company. These efforts are proven through outreach initiatives also being established by these brands, such as the Hollister Confidence Project, an initiative providing fundraising to nonprofit groups focused on confidence and wellness of teenagers (ANF partners). This type of project further repairs the damage done by the exclusive and stereotypical nature of A&F’s original target audience and advertising. By widening the scope of the new A&F purpose and brand vision to include partner companies and underlying stakeholders, it is easier for consumers to envision the new persona of Abercrombie & Fitch and pushes the old, outdated values further in the past.
Media Impact
While this case of reputational demise led to a massive shift in Abercrombie & Fitch’s marketing, business structure, and target market, the media and its display of public opinion helped A&F realize the dire need to evolve with society. Many news outlets commented on the controversy of the previous A&F leadership, Mike Jeffries, while others utilized parodies to showcase the outlandish ideals held by the brand. “Attractive and Fat” was a viral blog post created by Jes Baker to make fun of the A&F marketing style (LeTrent, 'attractive & fat' ad spoofs Abercrombie). In the photos, Baker, size 22, is posed like one of the iconic A&F models while sporting an A&F graphic tee. Because, at this time, A&F women’s sizing only ran to a size 10, this blog caused an uproar in the plus size community and resulted in Jeffries releasing a statement apologizing for his comments shaming those who were not paper-thin.
Furthermore, Baker’s blog was not only the spectacle brought on by the brand’s downfall. “White Hot: The Rise and Fall of Abercrombie & Fitch,” was a documentary released in 2022 by Netflix and sought to emphasize the many factors contributing to A&F’s downfall. Despite the film’s release happening after the initial rebrand and restructuring, there was a lot of attention fostered for the brand. Many consumers were curious at the changes made by the brand, and were pleasantly surprised at the state of the store in 2022. The film described how the brand’s vision of “American culture” was once true, but cannot apply to modern society as our values as a whole have changed drastically (Has Abercrombie & Fitch's CEO really made a 'big, fat, marketing mistake'?).
Social Media Impact
In the timeline of social media emergence, Abercrombie & Fitch was at its reputational turning point while many stable brands were making the shift towards social media marketing. Today, A&F utilizes a plethora of social media channels to communicate with consumers and stakeholders. First off, the brand’s website and mobile app includes a variety of features catering to the customer’s shopping experience such as shipping in store and sizing simulations (The return of abercrombie & fitch and the marketing lessons it teaches US). These types of details show consumers that the brand values their opinions and wants to ease their experience, which is one step to reestablish trust with these consumers.
A&F has also moved to TikTok and Instagram to foster engagement with more social-driven demographics. Utilization of these platforms has aided A&F in sharing new products, increasing awareness and engaging with social media users (The return of abercrombie & fitch and the marketing lessons it teaches US). Content on these platforms also come with a sense of authenticity, forming assumptions that the persona portrayed on social media is the true vision of the brand.
Social media marketing goes hand-in-hand with influencer marketing, and A&F has entered the influencer craze by partnering with individuals showcasing the brand’s new vision of diversity and inclusion. The A&F Creator Suite is a partnership program where chosen influencers are gifted products for content creation, given affiliate discounts and access to exclusive events (Community: Abercrombie & Fitch). These influencers are able to post their content to then be featured on A&F social media accounts, creating a symbiotic relationship between the parties. A&F, compared to some other companies, has relatively attainable parameters for qualifying as an influencer, which is positive because consumers feel that A&F is supportive of its lesser known social media users and wants to include them. For example, A&F’s partner company, Hollister, partnered with Dixie and Charli D’Amelio for the “Social Tourist” campaign, focusing products on the Gen-Z digital lifestyle (Donaldson, Abercrombie & Fitch Launches Social Influencer brand with charli and Dixie D'Amelio). Collaborating with such prominent Internet personalities allows for new audiences to be reached and embraces the lifestyle held by the influencer and their followers.