Okay, I just read that Hollister is owned by abercrombie.
As far as I know, Abercrombie is already pretty damn successful. Why would they open Hollister as well? What are the benefits?
Also, and more GQ related, What is the deal with this store, when did it open? is it becoming comparable to abercrombie in terms of sales?
Since this isn’t GQ: Brand Differentiation, sorta.
I’m 20. When I hear “Abercrombie,” I think “preppy polo shirts” (obviously there’s more to it than that, but that’s the image I get). When I hear “Hollister,” I think beach/surfer/casual clothes.
Now, when Abercrombie wants to market coastal/surfer/beachwear/shoreline/more casual-type clothing, they can put it in all their existing stores under their existing brand name, but that strategy runs the risk of A) not appealing to their target market with those clothes, B) “diluting” their brand awareness among people (i.e. you’ll get people hearing “Abercrombie” and thinking about one of two distinctly different clothing styles, rather than specifically one type), and C) possibly alienating current customers (what are those surfer people doing in our store?).
They apparently sell the same or similar items in both stores (some of the items, not all, obviously), as I was in a Hollister a few days ago and saw these. I don’t think they were $200 there, but I didn’t look because I’m not really interested in buying torn-up, faded, worn-in and paint-spattered jeans…I generally make them look that way myself after buying them new (incidentally, isn’t that a bit like Ford bringing out a new car with pre-made dents, scratches and windshield cracks?).
Anyhow, to sum up, the two stores have an entirely different feel, and do, indeed, have some different merchandise. My money’s on trying to market to several different groups of people more effectively.
Great answer, Garfield. I’d just like to say that those $200 jeans are ridiculous.
I recall reading some “newspaper of record” (New York Times? Wall Street Journal? No site; be forewarned) that as Abercrombie consumers age, yet still continue to shop there, the chain runs the risk of becoming yesterday’s news, dated in the minds of younger consumers. Hollister was an A&F spinoff intended to capture a younger market, albiet with similar product.
Basically:
Abercrombie: catering to older Generation Y-ers; upper level college students and those a bit older, ages 20-25.
Hollister: catering to young Generation Y-ers; high school students and those just entering college, ages 14-20.
I’ve got some frightening memories of mall stores back in the Generation X years. Yo, is Chess King still friggin’ around? Madone!
They are selling to teenagers - for whom buying at the “in” store is paramount. It would make sense for those marketing to the 13-23 age group they have 2 venues. One that is in at the moment and one that will re-invent itself and become in after the shine has left the first.
And Hollister is quite a bit cheaper than A & F.
Around here, my teenagers and their friends love Hollister but won’t set foot in Abecrombie. The reason they give is because A & F is overpriced and their clothes are no longer cool. What’s ironic is that they prefer Gap to Old Navy. Go figure…
Huh, and A&F quality is just not there, IMO. At least twice, my daughter has had jeans rip or sleeves rip at the seams–on maybe the second or third wearing.
For those prices, I want quality.
She doesn’t care for Hollister, but they are just coming to us, so…she is 15, BTW. American Eagle is big here, as is Aeorpostal.
I remember Chess King–ugh. I remember when Casual Corner sold casual clothes!