Urban Outfitters essay
The gradual development of the business strategy of the Urban Outfitters.
Why does the brand Urban Outfitters outweighs between the other existing trademarks in US? What role do 50 Anthropologies stores play in US business world? How did Urban Outfitters appeal to the Jew audience?
The Urban Outfitters approximately 60 namesake stores are situated mainly in the US, but also in Canada and the UK. The main popularity is observed in the US though.
Urban Outfitters essay
“…Our established ability to understand our customers and connect with them on an emotional level is the reason for our success...”
Introduction: When people talk about fashion nowadays there is a huge list of companies they can name. Contemporary world gives the opportunity to exist to any fashion trend. Therefore there is always a product that will satisfy any taste. The demand of taste-satisfaction is one of the main goals of any retail store. Urban Outfitters definitely outweighs between the trademarks that can claim having a high level of customer’s satisfaction. It has a style, a style that will fit anybody, but it is not for everybody. It has more to do with metropolitan hipsters, with action, with movement, with incontinence, brightness and with style. Urban Outfitters has your outfit if you are open, active and liberal-minded. It offers a variety of casual clothes, accessories, gifts, house wares, and shoes. It is a real success in the world of fashion. One of the secrets of the success of Urban Outfitters is that their brands are distinct and compelling at the same time. They complement each other making a perfect combination of styles to fit any customer. Urban Outfitters was founded in 1970 and was first known as The Free People's Store. Richard Hayne founded it. He is now the president and the chairman of Urban Outfitters. Richard Hayne is the owner of 42% of his huge firm. He made a long way to get to where the company is now. And the result that is easily seen now completely amazes one’s sight. Urban Outfitters consists of three main brands - Urban Outfitters, Anthropologie and Free People. The Urban Outfitters approximately 60 namesake stores are situated mainly in the US, but also in Canada and the UK. The main popularity is observed in the US though.
More than 50 Anthropologie stores were created to satisfy the demands of older women (30- to 45-year-old suburbanites) with the outfit they would enjoy wearing. Urban Outfitter’s eldest wholesale division -The Free People, supply clothing, house wares, and gift items to more than 1,100 specialty stores (the wholesale division sells its products under two labels: Free People and bdg). Each of the Urban Outfitters, Anthropologie and Free People brands chooses a definite kind of a customer for each of them. So there is different customer “segment” and work on it by creating sustainable points of distinction with that segment. In this retail brand the firm designs exclusive products that resonate with the target audience. And even more that, it is the place where it is so easy to incorporate found objects into creative selling vignettes. Urban Outfitters stands on the crossroads of the hard and soft goods. All that makes it an “eclectic mix of merchandise”. The emphasis is always made on creativity; it is the flight of fantasy, imagination without borders. The goal of the brands is to persuade the customer to buy stuff and their mean of achieving it is to offer an assortment of products and so compelling and distinctive that the customer feels an empathetic connection to it and is persuaded to buy. It is obvious that Urban Outfitters is achieving its goal. Everything listed above has a financial result that can really impress. In fiscal year 2003, a year when most retailers' bottom lines crapped out, Urban Outfitters opened 13 new stores and posted a company record of $423 million in sales-with net profits jumping up a whopping 83 percent over the previous year to $27.4 million. Since 1999 Urban Outfitters shows approximately 29% yearly growth of sales. In comparison of 1999 - 209.9 million dollar sales income, we observe a 2004 - 548.4 million sales income. 48.4 % of the last number is the 2004 net sales income. On the year 2004 it has 4,600 employees and one-year employee growth is about 43.8%. The income of the Urban Outfitters comes is the first place from Apparel & Accessories Retail. Then it gives the way to: Footwear and related products retail, Home Furnishings & Housewares Retail, Consumer Products Manufacturers.
Among the products there are -capsule T-shirts emblazoned with slogans like "Jive Turkey," "Death Before Disco" and "Atari." There are the old school Pumas, Adidas and Tigers in a dozen shades of retro. There are toys like Mr. Potato-head and Bubble Monkey, Run-D.M.C. action figures and the De Lorean time machine car from Back to the Future. The favorite pick of young people is casual wear that with its originality is very popular among them, which is obvious. The flagship store is at 17th and Walnut streets is stylized to evoke what can only be described as a chicm it is made in industrial style: exposed brick, plaster walls and ventilation ducts. Everything is illuminated by the soft glow of warehouse loft light fixtures. Urban Outfitters is a company that takes care of its customers in any way it can. Richard Hayne makes his best in supporting the reputation of the Urban Outfitters, though he himself has been in some arguments connected with politics. Nevertheless Urban Outfitters with Hayne in head of the company make steps that show that care not only about customers liking or not liking their exclusive products that are design for a certain group of customers, but about the moral issues connected with their customers, too.
Conclusion: For example Urban Outfitters was praised for its decision to stop the production of a t-shirt that continues establishing an ethnic stereotype of Jews. The clothing item, part of a line of ethnic t-shirts, featured the slogan: EVERYONE LOVES A JEWISH GIRL surrounded by dollar signs. The Anti-Defamation League wrote to Urban Outfitters, Inc. President Richard Hayne on January 6 to complain that the shirt reinforced a negative association between Jews and money and, as such, continued establishing an offensive stereotype. Urban Outfitters reported that it chose to take this action because of both internal and external concerns and out of respect for the sensitivity of the Jewish community. It has also stated that future production of the shirt will not contain the dollar signs or any other graphic elements or embellishments. Urban Outfitters made an action showing sensitivity to its clients and to the Jewish community. Which show’s the company from a very positive side. The League also offered its assistance to the company in the future and expressed that it hopes that this experience, combined with another recent controversy surrounding an Urban Outfitters product that reinforced stereotypes, has served to sensitize the company to the sensibilities of its customer base and all ethnic groups. This change from the side of Urban Outfitters was shocking for their competitors such as Gap.
Urban Outfitters with a history of 34 years and a supply of products that fit only certain type of customers, shows a perfect example of how a retail store can grow to a success of having $548,4 million dollar profit. It can be an example for smaller companies. An example of how quality, creativity without borders and right management can guarantee a company prosperous development. There is one big secret that provides the half of the Urban Outfitters success. It is all about one quality - flexibility. This quality connected with the originality of Urban Outfitters products makes it one of the most interesting brands in the United States. Hopefully, other companies will take at least a little from the Urban Outfitters experience. This would lead to a more prosperous market with a larger variety of products to satisfy the customer’s taste.