The beginning of the end for Mike Jeffries began in 2006, when he was a momentous interview. “. In every school there is a cool and popular people and not so cool I admit, we want the attractive all-American kid wearing our stuff, which has a great charisma and a lot of friends,” said the Abercrombie & amp; -Fitch-chief at the time of the website Salon.com. A lot of people simply did not fit to Abercrombie. “May we conclude from people? Absolutely!”
The interesting thing about the interview that no one bothered to 2006 Jeffries’ provocative statements. But as the brand 2012 lost their luster, suddenly broke a true Shit Storm enters in the social network about Jeffries. What was once the exclusive cult brand a label with which only rich, arrogant loser was dared before the door.
Jeffries has failed in his desperate attempts of the brand again breathe a positive image. On Tuesday, the US group was from Ohio for the immediate resignation of the 70-year-old company director known. Was until a new board found, Executive Chairman Arthur Martinez was to lead the company.
The official stressed Jeffries in the opinion that “it is the right time for a new leadership “. In fact, similar to the hasty departure dismissing against whom Jeffries had long tried to fight back.
major investor wanted Jeffries long time to get rid
Abercrombie’s major investor Engaged Capital had exerted pressure on the group for a year to put Jeffries at the door. In January, the company had responded with a compromise: Jeffries had resigned as Executive Chairman and contented himself with the board position. At the same time the Board was expanded to include four new independent members should watch the dominant boss on the fingers.
For a while gave the hedge fund Engaged Capital and other shareholders satisfied with the solution, but the most recent quarterly numbers must have given the rest Jeffries.
Last Wednesday was the Group announced that sales in the last quarter slumped again at twelve percent. The profit fell by a quarter to around 30 million dollars (24 million euros). The sales forecast for the current year had to correct Jeffries downward. 2014, the Group will probably implement only $ 3.8 billion -. Almost 20 percent less than last year
The shareholders reacted accordingly euphoric on Jeffries’ resignation , After the opening of the New York Stock Exchange on Tuesday morning, the stock <"prefix_1" h2 class => Jeffries shot by almost ten percent upward.
Rescued Abercrombie once from bankruptcyLong gone are the days when Jeffries was the favorite of the stock market. But he was undoubtedly once, for he made it, from the run-down hunting brand Abercrombie & amp; Fitch to form a trendy teen fashion line. In 1992, Jeffries the top job at Abercrombie, which was then known as a specialist fishing tackle, fishing rods and tents and was on the verge of bankruptcy.
Jeffries rolled up his brand sharply by. From him the idea of the logo Abercrombie & amp came; Fitch to be printed in bold letters on the clothes. He stocked fishing rods, shotguns and dome tents from the range. Instead, he positioned Abercrombie as high-priced youth brand with casual hooded pullovers, polo shirts and jeans.
The Abercrombie logo on the chest as a membership card to the exclusive club of the thinnest , most beautiful, and most popular student in the school yard. Who wanted to belong, needed a Abercrombie sweater.
Abercrombie was at times the most popular teen brand
Jeffries ‘strategy worked. In its first two years of service, the sales figures doubled to 165 million dollars. 1999, the Group broke the billion-dollar mark for the first time. “In schools across the United States Abercrombie is the short form for ‘popular’,” wrote the “Time” magazine in 2000. In the same year, Jack was voted the most popular teen brand.
Those days are long gone. Now Jack is number two of a list of brands that American teenagers do not want to attract. For Millennials, ie the 1980 to 2000 born generation, it is no longer in running with bold, brash a brand logos on the chest through the area.
The change in values due to the financial crisis, but also the increasing individualization of youth has maneuvered into the offside Abercrombie. In times of Instagram and Facebook every young person can represent as his own work of art. Hipster want to be different, do not belong to a conformal group.
have not helped with security and Jeffries’ arrogant remarks, who had to wear the fashion and who yet please should stay out. There were also several complaints from employees or rejected applicants who felt discriminated against because of their skin color or their other appearance. Employees complained for example, that they were transferred to the camp of the door when the abdominal muscles no longer sat quite so tight.
Jeffries exchanged pilot through a prettier version of
The openly gay living Eccentrics 2012, provoked a lawsuit by a former pilot of the Abercrombie corporate jets. This Jeffries had sued for age discrimination because he had replaced him with a younger, prettier pilots.
In the court case also came to light that Jeffries the entire cabin crew – all male models – forced always respond to every need of chef with “no problem”. In addition, Jeffries wrote them down to their underwear just before what they had to carry.
All these anecdotes damaged the image of the brand. To this end, the basket of young people has changed. Gave earlier generations much of their pocket money for fashion made must now compete with the new sweater or the new denim with expensive smart phones, headphones and other gadget-frills. Beneficiaries of this trend are cheap brands like H & amp;. M, Forever 21 or Primark
print no uniform logos on the shirts. At the same time their fabrics are so cheap that you can often quickly change its own style. A simple t-shirt at Abercrombie easily cost 50 euros. But one can at Primark buy a whole stack.
Jeffries fought too long to changes
With the Changing values at the Millennials in recent years got Jack suddenly an image problem. Much too late and reluctantly responded Jeffries on the changing tastes of its target audience. In August Jeffries announced that it would not print more intrusive logos on clothing. By 2015, all those sweaters, T-shirts and jackets should disappear from the shelves of Abercrombie stores.
In addition, the company will now also offer clothes for rounder and older customers and expand the collection to offer more fashionable accessories. Between the usual sports clothes lie, most recently and blouses with floral patterns, sequins jacket, handbags and fashion jewelry in the shop windows.
The downtrend could not stop it. Probably also because many young people do not go to the Abercrombie stores and have not noticed the change. The departure of longtime chef is therefore an important first step in setting new signals. Although it is thanks to Jeffries that Jack in the first place was a popular fashion brand. However, it is his fault that the former cult brand degenerated into a symbol for rich, obnoxious twerp.
Who will always take the post as the new chief executive, is expected to it does not have it easy. The Group seeks both within the company and outside for suitable candidates. The new chief must first shake the shoddy image of Jack. But it must also be a new brand essence of the company. For what Jack is now actually stand in the future, that know not companies or clients.
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