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American Apparel Facing Decline in Australian Market

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Published on : Jul 30, 2015

American apparel, a California-based clothing company, is facing a sharp decline in sales in Australia. American apparel is famous for its non-branded clothes and sweat-free status. The declining sales in Australia indicates a fading link with the robust base of customers, it once had in the nation. 

As per the statistical figures, the company is going through a decline over the past few years. In its annual report, published recently, the firm has declared the net sales for the year 2014 at US$9.3 million, which is way too less than the sales reported in 2012 that amounted to US$11.4 million. In 2013, it posted a revenue of US$10.2 million.

American Apparel ventured into the Australian market in 2008 and opened its first store in Melbourne. Further, it expanded its business by opening stores in Adelaide, Sydney, and various other places across Australia.

The decline of the popularity of the brand has become the hot topic for speculators. Ms. Phoebe Montag, the founder and editor of Lady Melbourne, a fashion website stated that the decrease in the sales volume of the brand is owing to its incapability to keep up the changing requirements of the consumers. The company lacks innovation and its products have been more or less the same, providing nothing new to its customers.

The company had an edge over peers owing to its reputation of being ethically-made and sweat-free. But once customers start to get the other stuff that go on, then the market gets pessimistic and turns, said Ms. Kate Kennedy, a lecturer fashion and entrepreneurship at RMIT.