Marketing Assignment Canadian Apparel Federation Essay

Words: 1964
Pages: 8

| Canadian Apparel Federation | Exploratory Research Assignment |

June 2, 2012 |


The Canadian Apparel Federation is facing numerous challenges as the apparel industry is very competitive and consumer tastes and preferences are constantly changing. Our study will present some of the major trends developing in the apparel industry and what companies can do to capitalize on the market and distinguish themselves from the competitors.
Research Objectives

The purpose of study is to identify what a company must do to separate themselves from their competition and how to best retain and attract customers. We will examine what actions are required by companies to become successful in the market. We will
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Lululemon believes that its premium pricing is that attracts customers to the store

American Apparel
American Apparel was started by at a Montreal born Canadian, Dov Charney in 1989 through selling of basic t-shirt and underwear. By 2000 he was designing and making his clothing in downtown LA with focus on quality and expanded its clothing line to sell various items for both men and women. American Apparel had focused its marketing platform on the fact that their clothing made in America and used sexual advertisements attract customers. These advertisements had created a lot of controversy for the company but have also been praised by consumers for their openness and honestly in the industry. Dov Charney has been an enormous voice for the company and has claims to have some of the highest paid workers in the apparel industry. He also is a big advocate for the environment, pro gay rights and created pro-immigration rallies (Wikipedia).
In 2004 the company experienced 74% sales growth in 2004, 25% in 2005, and only 7% in 2006. Sales had hit a peek in 2009 and have declined since (Business and Company Resource Centre). In 2010 and 2011 the company had a negative net income and have been since experiencing financial hardship. Dov Charney has control of the company but feels he may have to sell additional shares in the near future to help with cash flow problems (Annual Report 2011). Part of American Apparel’s early success