Abercrombie & Fitch's ongoing struggles are often blamed on the rise of fast-fashion chains such as H&M, Forever 21 and Zara that can offer cheap runway knockoffs. But a bigger hurdle may be fashion's increasing challenge competing with the iPhone and other newfangled gadgets.
"It's definitely more exciting for a lot of teenagers to have a new phone that can do lots of cool stuff than clothing," Nicole Myers, 19, a model in New York, told the New York Times. She had just bought a $200 iPhone from Apple.
The Times article, entitled, "Plugged-In Over Preppy: Teenagers Favor Tech Over Clothes," explores the growing appeal of tech items like phones, apps and accessories amid the back-to-school selling period, and how accessories like crystal-studded phone cases or neon-colored headphones are becoming fashion statements themselves.
The article also points out to how technology is influencing purchases in other categories. For the first time, food exceeded apparel as a percentage of the teen wallet in Piper Jaffray's 27th Semi-Annual Teen survey because many restaurants have free Wi-Fi. Overall, Piper Jaffray's survey found that after several years of strong growth, the percentage of money that teenagers spent on electronics seemed to have stabilized at around 8 or 9 percent.
Abercrombie appears to believe its issues are still fashion and pricing related. Last week in reporting a 6 percent decline in second-quarter revenues, Abercrombie said it would double down its efforts on fashionable offerings, speed up its supply chain to better capitalize on trends, and take costs out of its production process. Its closest competitors — Aeropostale and American Eagle Outfitters — are also being hit by heightened competition from the fast-fashion chains.
But the big news is that Abercrombie is moving to nearly rid its apparel of its logos by Spring 2015.
"In the spring season we are looking to take the North American logo business to practically nothing," CEO Mike Jeffries said on a conference call with analysts.
The Wall Street Journal said the teenagers "have shifted to cheaper, unmarked gear that they can use to put together their own individual styles."
But some still felt the change reflected how technology is being used in show status.
Wrote, Vauhini Vara, business editor at newyorker.com, "Why should a teen send subtle signals about her identity by dressing in a certain brand when she can define herself explicitly on Facebook and Instagram?"
- Plugged-In Over Preppy: Teenagers Favor Tech Over Clothes - New York Times
- Piper Jaffray 27th Semi-Annual Taking Stock With Teens Survey, Spring 2014 - Piper-Jaffray
- Abercrombie to Remove Logos From Most Clothing - Wall Street Journal
- Abercrombie & Fitch dropping logos from clothes - Reuters
- The other group leaving teen retailers in the dust - CNBC
- Abercrombie & Fitch's No-Go Logo - New Yorker