Since, Sunday 21 September 2014, Made in America: why American Giant didn’t want to build factories in China
American Giant is a direct-to-consumer apparel company, which is today really famous. It’s a particular company because the manager of the firm decided to produce all of his items in America. American Giant has succeeded with the implementation of hoodie.
Today, one might wonder how succefull a big and famous clothing company can be producing only in America.
In the 1970s, with the reform of fashion industry into mass-market business leaded by the rise in power of mall store; its marketing and distribution costs began to increased. When you go to a shop to buy a hoodie you “pay the brand”, non your item in reality. Indeed the product items no cost more about $6 or $7 to produce at an Asian manufacturing facility.
Indeed, on one hand, there is so much pressure on US laborers, on manufacturers, cost cutting; on the other hand, countries as China bangladesh or China offers different solution to reduce these issues. That’s why lot of clothing company choose to delocate their production unit.
Winthrop, founder of American Giant, considers that the quality of a product is the key to an item for succeed. To ensuring this quality there is no better place than America to produce those. Morover he has choosen to face this challenge, find a way to liberate American manufacturing. He refuses to delocate his production as he knows o act this way he do not have the cheapest material, the cheapest labor. As he said «one of those learning moments, just out of the blue,” that creating sweatshirts in foreign factories would undermine the company’s “brand values and quality. ” ».
The most amazing about this story is that it was able to align its prices with those from brands such as J. Crew, Banana Republic and levi’s.).
Since its launch, that is to say, there are two years is a real achievement.
The main challenge of the company is to be competitive effectively in a more challenging market. Keep is main objective to produce its clothes well made and sold at a price that delivers value.
In our opinion, potentially all ingredients are in place to enhance success. American Giant have to continue to go ahead.