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American Apparel : A Strikingly Different Anti-Label Company.
Faz
Von Thorsten Winter
November 8, 2004

Labels are in high demand, whether or not there is a slump in consumer purchasing and a paltry growth rate. Young people, especially, are fond of labels. According to a survey by the Institute for German Economy, the young generation in Germany spends more than 200 million Euros per months, not the least of it on clothing. What makes these young people - including those living in this Rhein-Main region - consciously single out certain stores or boutiques, is their keen awareness of labels. To be trendy is very important to many youngsters; and trends are subject to frequent changes.

Ignoring trends, American Apparel took a risk when it opened its store in the Kaiserstrasse in Frankfurt in May of 2004. The clothes, this Los Angeles based company is offering to men, women and children most certainly do not adhere to the last word in fashion. They do not even have labels. Yet, American Apparel has a profile all its own.

The name American Apparel is characteristic in a dual sense. On the one hand it means "American Clothing" and is an indication of what the store is selling. On the other hand its name suggests anything but fashionable or trendy. American Apparel products are "basic", which is precisely how the company classifies its merchandise. It offers T-shirts with or without sleeves, sweat-shirts, undershirts, bras and slips in different styles. Additionally, it sells skirts and comfortable pants to grown-ups, as well as rompers, caps and other items for infants and toddlers, most of them made of the finest cotton.

LEMON, RED, PURPLE OR ORANGE.

When it comes to colors, American Apparel seems to follow the rainbow palette. You will find colors including lemon, red, purple or orange. But there is also black and white, and you could not get more basic than that. American Apparel enjoys a favorable reputation within the garment industry. The magazine Textilwirtschaft reports that "the products of American Apparel have proven to be of good quality".

Anyone entering the store in this rather quiet neighborhood of Frankfurt will at once determine that the make-up of this store is anything but playful. Eight cube-shaped closets with drawers dominate the center of the store and serve as surface on which to display the merchandise. T-shirts, shirts and dresses are hanging from racks placed along the walls to the right and left. There are also white veneer shelves from a Swedish furniture company. Green plants and photos are the only decoration. Ascending the stairs to look at underwear, you don't notice the collection of old Penthouse magazines displayed in clear plastic covers on the wall at your back, but they are staring you in the face as you descend the stairs on your way out. Small photos, taken by company CEO Dov Charney himself, grace the walls along the stairway.

Last but not least, there are tables and chairs for customers to sit at, drink a beverage and leaf through magazines. In other words, shoppers are invited to stay a little and relax. "We want our customers to feel at ease here", says Vera Heindel, who functions as the official store manager. ("After all, we are an American Company"). The male magazines serve only as a kick, as a "decoration" so to speak. They are not for reading; there are fashion magazines on the table for this purpose.

LET THE COMPETITION CHASE FASHION TRENDS.

The clientele in Frankfurt is international, like the city itself, and tends to be rather young than old. Customers are locals and a fair number of tourists, who are familiar with this clear-cut anti-label company from its stores in America, Canada, London and Paris. A short while ago, for example, two Japanese girls were rummaging through shirts and tank tops and made a number of purchases. A young mother from the region with a baby stroller similarly peruses the merchandise. She appreciates that "the merchandise is not so trendy". She does not want to play model for some big fashion houses, she prefers clothes that are more basic. It does not bother her that the T-shirts at H&M cost less. She likes the fact that American Apparel operates no production sites in low-wage countries, as is noted outside on the store window. "I don't mind to pay a little bit more for the things".

Not quite cheap, and yet, not 'hip' either. Will this work in Frankfurt? "It depends, to whom you compare us", says Heindel. The truth is that American Apparel dislikes being compared to other companies. Its own products are more timeless than the garments offered by H&M and Zara, which are trend setters. "That is precisely what we don't want to be", she emphasizes. As to the success of American Apparel in Frankfurt, the store manager thinks it is doing quite nicely, considering the quiet location, which nevertheless, can be reached easily from the main railroad station and also from the Hauptwache. In addition, there is a branch of 'Starbucks' coffee not too far away, which also originates from the American West Coast and which is quite well-known to a broad range of people.

In contrast, American Apparel is still expanding its popularity. "Since our products are not so well-known yet in Europe, we have to build up a consumer market for our goods", remarks Heindel. The growth of the company in Europe, however, is an indication that you can profitably create a niche in the market for yourself, even if your garments are timeless and seem current merely by the way they are cut.

American Apparel's store in Paris will create another food-hold in the market place. And in North America the company plans to open twenty-five new stores, including an additional one in fashion-conscious New York, where it already has established branches in seven different locations throughout the city.

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