A Stock That Looks Inside Young Minds (Part 1)
Provocation, rebellion, and entirely new values, are known to capture the imaginations of the young. Adolescents and young adults are most prone to follow new trends, but even older people try to recapture youth by overtly associating with viral trends in fashion and social norms. These recurrent social phenomena are tools for the enterprise of American Apparel, a novel stock offering from the revolutionary world of Los Angeles. 2007 business results for this path-breaking stock are still small by US standards, but the management has shown rare insights in to emerging consumer minds, to make its mark.
Smart Strategy behind Stock Value
A typical first glance at the American Apparel web site will either delight or horrify, depending upon your age and sex! However, smart stock investors will quickly recognize some hard-headed business management capabilities behind the raw sensuality. American Apparel has broad appeal to young adults across all developed economies. Indeed, the company has physical stores in a number of countries, apart from in the United States. The Internet business model is prominent and vital, so the enterprise need make no secret of global intentions. This is in sharp contrast to the sourcing model, which is entirely indigenous, and even limited to the greater Los Angeles area. American Apparel does everything from sewing to advertising on its own, and will have no truck with outsourcing jobs to hidden sweat shops.
The tangible features of the product lines of American Apparel are entirely plebian. It is significant that entrenched players in the clothing arena flounder, even as this new kid on the block makes serious waves. Buying outer or inner wear from American Apparel delivers mysterious value to young customers, while those who own the stocks laugh all the way to the next quarterly results! Overall, the degrees of vertical integration in American Apparel, and the clever capture of a whole swathe of customer segments, are rare treasures in the hall of stock market successes.