Made in Downtown LAVertically Integrated Manufacturing
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Vertical Integration
Our Model
American Apparel has integrated manufacturing, distribution and retail as no one has before. With virtually every step of the process executed in downtown LA, our vertically integrated business model allows us more flexibility and faster turnaround times than most in the market. From dyeing, cutting, and sewing to advertising and design, we do everything in-house and do not rely on outsourcing.

Designing and Marketing
Not only do we design all of our garments in our Los Angeles factory, we also design all our advertising and marketing materials. Our employees model the clothing and take the photographs used in our ads. We market our products through use of advertisements on billboards, in magazines, newspapers and banners on web sites.

Knitting and Dyeing
Aside from our Los Angeles factory, American Apparel operates a fabric dyeing and finishing facility in Hawthorne, a knitting facility in Los Angeles, a fabric knitting, dyeing, cutting and sewing facility in Garden Grove, and a cutting, sewing and garment dyeing facility in South Gate. We acquired these facilities in an effort to streamline the supply chain, increase our product offerings and lower costs by reducing reliance on subcontractors.

Fabric Storage, Cutting and Sewing
We have our own storage facilities for the fabric we cut and sew in our 800,000-square-foot factory in downtown Los Angeles. While most other companies selling clothing in the United States base production elsewhere, American Apparel bases its manufacturing in this Los Angeles facility. A garment starts and ends in the factory where the idea for the design is conceived and the last stitch is made.

Warehouse Distribution
American Apparel maintains a warehouse distribution center on site. We keep inventory and ship out orders received on our e-commerce web site, from our Los Angeles factory the same day the orders are placed. We use Fresh Air Freight, a trucking company and one of our subsidiaries, to replenish retail stores throughout the U.S.

American Apparel began by selling high quality T-shirts to screen printers and boutiques as a wholesaler. We expanded our operations into the retail realm and now sell our products through our retail stores and through our wholesale operations. We are still one of the largest wholesalers in the country, selling T-shirts for band merchandise, for animal rights groups and much more.

In keeping with the vertically integrated business model, we own all American Apparel retail stores, rather than franchising them. Our retail sales include an online store, which sells garments throughout the U.S. and internationally. We have more than 260 stores worldwide. Our rapid retail growth continues with new stores in the United States, Austria, Belgium, Israel, Italy, Ireland, Japan, Korea, Netherlands, Switzerland, China, Germany, Canada, France, Sweden, Mexico, United Kingdom, Brazil and Australia.
In the Press
Everyone is talking about vertical integration. Read others' points of view and why it is so important to our business.

Inside American Apparel: 4000 Downtown Employees and Counting
"Vertical integration is the mantra here..."

Home-Run Hitters
"Dov Charney, is out to prove that a vertical manufacturing company... can be profitable.."
-Industry Week

California Hustlin'
"In his investor pitch, Charney stresses vertical integration."

A Visit to American Apparel
"Another concept: complete vertical integration."
-Evolving Excellence

Green is the theme
"She swears by the concept of 'vertical integration.'"