August 31, 2007
Can Korean Retailer Speak American Teens’ Language?
A report on the Women’s Wear Daily website says Abercrombie & Fitch, Hollister and others are about to find new competition in the form of Who.A.U., a South Korean fashion retailer catering to teens and young adults that plans to have 50 stores operating in the U.S. over the next five years.
The retailer’s name stands for Who Are You, according to Daniel Pang, executive vice president of U.S. operations for company. “We’re challenging consumers by asking who you are. The clothing clarifies your identity,” he said.
“The basic inspiration is the California lifestyle, plus we incorporate the 1849 gold rush,” he told WWD. “A lot of people think about money and getting rich when they think of the gold rush. We’re incorporating it because it’s about adventure and pioneering and confronting a challenge. We say to teens or college students, ‘You are the bright future, go challenge whatever you’re facing.’”
Who.A.U. is looking to set up shop in mall locations with its first set of stores.
“We find the [communities with the] target demographic,” Mr. Pang told WWD. “We’ve had another business in the U.S. for seven years, a wholesale children’s wear collection, so we learned all the geographical differences and town-by-town differences.”
Who.A.U. plans to open its first store in a 4,100-square-foot space at Stamford Town Center in Stamford, Conn. in November. The store is much smaller than the typical Who.A.U. unit (up to 20,000 square feet), which typically come with a cappuccino and soda bar.
Who.A.U. is owned by E-Land, one of South Korea’s largest clothing manufacturers.
Discussion Questions: What challenges will Who.A.U. face as it enters the U.S. market? Is there room for yet another apparel retailer catering to teens and young adults?
BrainTrust
Recent Discussions
Discussion Questions
Poll
This is gonna’ be great. Kids love to mess with our minds using codewords, arcane concepts familiar only to themselves, and mysterious references that they must patiently explain to stupid adults (if they absolutely MUST) while sighing and rolling their eyes. Just think of the weirdness of text messaging and the (now-faded but initially successful) FUBU.
Looking at the Who.A.U. site, the clothes seem aimed at the “Triple A Team” (Abercrombie & Fitch, Aeropostale, American Eagle) audience. That audience is huge, and always torn between looking for something new versus conforming to what everyone else is wearing. For some folks, it’s not fun to see yourself coming and going in the same clothes as so many other people. So additional permutations might be attractive.
One critical issue: the Who.A.U. site is nowhere as erotic as Ambercrombie & Fitch. This market needs eroticism like farmers need the sun.
I believe that A&F would agree with Martin Coles, President of Starbucks Coffee International, who said in a recent article, “We do not spend a great deal of time focusing on our competition.” Why would they worry; they’ve stuck to the course through thick and thin (as Mike Jeffries says, “We’re a regular price brand.” — right!)
A&F is a formidable opponent, especially in terms of brand and brand execution. Their customer is as loyal as any in retail, sticking with them through the onslaught of copy-cats (AE, Aeropostal, even Gap, at times) and barrages of intentional bad press (or, is that really good PR?). So, history says it’ll be tough to move their customers to an unproven, foreign brand.
Can someone come in and be relatively successful? Sure (look at Forever 21’s dash). But will they topple the proverbial King of the Hill?? I doubt it.
If I were a copy cat, though, I might look in the rear view mirror now and then.
Teens and young adults truly have a global mindset. They will flock to the stores to explore new concepts for the sake of newness overall. If the retailer delivers on innovative style and acceptable quality, there is certainly room in the ever evolving landscape of fashion.
More Discussions
How Timely Is the Planned Lowe’s Website Renovation Focusing on Personalization?
Is Lowe’s being timely with its website reno, and is it right to be placed as…Should Costco Be Opening Members-Only Gas Stations?
Is this the right move for the warehouse club?As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…
This is gonna’ be great. Kids love to mess with our minds using codewords, arcane concepts familiar only to themselves, and mysterious references that they must patiently explain to stupid adults (if they absolutely MUST) while sighing and rolling their eyes. Just think of the weirdness of text messaging and the (now-faded but initially successful) FUBU.
Looking at the Who.A.U. site, the clothes seem aimed at the “Triple A Team” (Abercrombie & Fitch, Aeropostale, American Eagle) audience. That audience is huge, and always torn between looking for something new versus conforming to what everyone else is wearing. For some folks, it’s not fun to see yourself coming and going in the same clothes as so many other people. So additional permutations might be attractive.
One critical issue: the Who.A.U. site is nowhere as erotic as Ambercrombie & Fitch. This market needs eroticism like farmers need the sun.
I believe that A&F would agree with Martin Coles, President of Starbucks Coffee International, who said in a recent article, “We do not spend a great deal of time focusing on our competition.” Why would they worry; they’ve stuck to the course through thick and thin (as Mike Jeffries says, “We’re a regular price brand.” — right!)
A&F is a formidable opponent, especially in terms of brand and brand execution. Their customer is as loyal as any in retail, sticking with them through the onslaught of copy-cats (AE, Aeropostal, even Gap, at times) and barrages of intentional bad press (or, is that really good PR?). So, history says it’ll be tough to move their customers to an unproven, foreign brand.
Can someone come in and be relatively successful? Sure (look at Forever 21’s dash). But will they topple the proverbial King of the Hill?? I doubt it.
If I were a copy cat, though, I might look in the rear view mirror now and then.
Teens and young adults truly have a global mindset. They will flock to the stores to explore new concepts for the sake of newness overall. If the retailer delivers on innovative style and acceptable quality, there is certainly room in the ever evolving landscape of fashion.