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Aropostale as the Apparel Industry - Term Paper Example

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This paper presents Aéropostale which is one of those industries that is making a big splash for itself by providing the newest fashion to the youth globally. Aeropostale, Inc is a public company categorized under Ready-To-Wear Apparel, Women's and located in New York, NY…
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Aropostale as the Apparel Industry
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Download file to see previous pages The brand was created by R.H Macy who later sold to Bear Stearns Merchant Banking in 1998. The company also sells its merchandise through its e-commerce website, ww.aeropostale.com. The company is headquartered at New York, the US and employs about 3,210 people. Below are some of the key financial statements about the company itself.
This company does have weak points because it is competing in a market of “commercial printing.” The cost of ink and paper continues to increase; it forces Aéropostale to mark-up prices on its merchandise in order to meet the break-even point. Competition from in-house printing due to the advent of technology enables small organizations to produce many jobs that could only be executed by commercial printers. In addition, the cost of owning digital presses may be difficult for this organization, since technology changes will force Aéropostale to hire and train workers that have experience with the new and sophisticated software. This forces Aéropostale to think of other ways to compete with these emerging apparel companies. Another challenge that the company faces is advertising. Since the company has a large customer base and products its merchandise via magazines and catalogs, it is forced to rely on a sales force to attract new and potential customers.
Without a doubt, Aéropostale has several competitors that are also striving to gain an edge in the apparel industry. Some of these competitors are Gap, Abercrombie & Fitch, Forever 21, American Eagle, and Urban Outfitters. In fashion retail, it is a challenge to keep up with the competition. Since new trends emerge every day, all retail companies must rotate their inventory of clothes in an efficient manner to ensure the customers are satisfied.
The future looks bright for Aéropostale clearly as the company achieved net sales of $463.6 million for the first quarter in 2010. ...Download file to see next pagesRead More
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