The Nature of Cultural Branding

What Can Be Learned from the Rise and Fall of Abercrombie & Fitch?

Cultural branding is a tool focused on aligning a brand with specific values or ideals. This approach recognizes that consumers often make purchasing decisions based not only on the functional attributes of a brand but also on the cultural environment and the value system of the culture in which they live. 

Many brands are built or updated based on cultural knowledge, as a brand exists within a social framework that can change over time. Marketing experts argue that consumers themselves are active participants in creating meaning for the brand and positioning it, coining the term "Brand Wikization": just as Wikipedia entries are created by users who represent the full social spectrum, the same applies to brands. 

The Story of Abercrombie & Fitch

Here is an example of a brand built from culture that collapsed, partly due to cultural changes: 

The American fashion brand was worth a massive $9 billion in 2007, then deteriorated within just 10 years to a “low” of about $700 million. So what happened? 

Abercrombie built its brand based on a deep understanding of the ideals of American teenagers in the 1990s and 2000s. At that time, certain American groups were generally excluded. Meanwhile, white Americans promoted an ideal largely based on appearance and high economic status. This exclusion was evident primarily in access to prestigious universities, sports teams, and other social resources.  

Abercrombie recognized this trend and sought to connect with the spirit of the era. Presenters like Ashton Kutcher perfectly represented the ideal beauty model for all American youth, with the brand excluding models from other ethnic groups in the U.S. The brand created an exclusive image linked to youth, sexuality, and attractiveness, fulfilling the “American Dream.”  

This positioning made the brand desirable for teens and young adults who aspired to belong to this desirable social group, including teens from other ethnic groups like Hispanics and African Americans, who still connected with the brand. This image-driven approach made consumers feel like part of an elite club. It achieved this not only through presenters, but also by instilling a sense of exclusivity by making exclusion part of the physical brand experience. 

Entering the stores always felt like stepping into a nightclub. The dark storefronts allured customers to enter the store. It was always heavily scented, with loud club music playing and dim lighting, disforming time and space.

Turning Point: From $9 Billion to $700 Million (in 10 years!)  

A series of events changed the picture entirely for the successful chain. The brand found itself at the center of a massive lawsuit after being accused of discrimination against POC, such as African Americans, Latinos, and Asians. In fact, only white American employees were offered front-facing and administrative roles. Many employees faced discrimination not only due to ethnicity, but also based on appearance. In 2013, the CEO was quoted as saying he "didn't want large and fat people in my stores, only beautiful people.” These events and the public criticism surrounding them gradually damaged the brand's reputation, causing upheaval across consumers, who turned against the brand.  

Greg Karber, a young man from Los Angeles, posted a viral video of him shopping for Abercrombie at thrift stores, then giving them away to the homeless in the city. He also led an Instagram campaign under the hashtag #FitchTheHomeless, asking the public to post photos of Abercrombie clothing they were planning on donating. Times had changed, and consumers wanted to engage with fair, equal, human-loving brands, but Abercrombie failed to adapt to the new cultural norms and values. 

Acknowledging the Mistake and the Recovery   

Interestingly, the brand looks and feels completely different now. The company's current branding seeks to show consumers the change it has undergone and the understanding that history will not repeat itself. Today, the brand stands for values like authenticity, diversity, and acceptance of others. In the past two years, recovery ensued: in 2023, the company’s stock rose by 90% compared to last year.

Conclusion 

Branding expert Douglas Holt believes that in order to build iconic, leading brands, businesses must gather and develop cultural knowledge, working with cultural experts, and design a branding strategy that aligns with the social and cultural framework. This approach suggests that the prominent brands of our time are "cultural resources that can shape behavior," no less. 

The story of Abercrombie shows us the great importance of adaption, specifically for brands. We recommend that brand managers remain attentive to changes in their consumers' values. Brands need to learn to evolve over time and understand the cultural and social space in which they live, making changes as needed.