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A Stock That Looks Inside Young Minds (Part 2)

5 February 2008 - News - Editor

A Stock That Looks Inside Young Minds (Part 1)

Customer Engagement through Social Partisanship for Stock Value

Young people are politically conscious, and love to rise against injustices of the old establishment. American Apparel’s management may have some internal and personal values for the rights of immigrants, but the stock value advantages of putting the issue squarely on top of the branding mountain, are striking and undeniable. You will want to support stocks of this company, quite apart from providing its brands with enthusiastic custom, if you are a part of the greater Hispanic scene in the United States. However, American Apparel blends its advocacy for immigrants so seamlessly with the outrageously bold images of its models that the brand can look forward to crazed following-at least until the next style icon comes around!

The unique and creative combination of bold advertising and espousing an anti-establishment cause, in marketing terms, amounts to assembling a cluster of consumer segments that has not been addressed before. Perhaps popular music genres have done this for ages, but it is novel to use this marketing ploy so consistently and visibly in a business with generic tangibles. It is therefore an equally noteworthy development for students and observes of Services Management. Overall, the track record of American Apparel is a case study in customer-focused marketing that has enhanced an umbrella brand immeasurably.

Will American Apparel Stock Continue to Thrive?

Top management faces flack immediately after the start of calendar 2008. Will the company survive the tarnish of improper personal behavior, or will the stock disappear after its merger with an anonymous partner? We have experts researching the issue, and expect to publish a companion piece to this article entitled “Process Not Personality Builds Durable Stock Value”. However, your opinions matter more than ours. Please join our forum and let us know what you think. It does not matter whether you are an American Apparel aficionado, or a die-hard conservative of the Old School, we would love to hear from you!

We are also interested in a dialog on other stocks which are bell weathers of our times. Do you know of brands and business models that signify new trends in society, and which are set to make major stock market gains because they resonate with values of emerging customer segments? This is an object of our regular environment scans as well, and we hope to regale you more stories of stocks that make waves in our minds as much as on our books of financial accounts.

 


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