American Apparel’s New Image

Wednesday, September 3rd, 2008

Fast Company writes about American Apparel's New Image — it went from emphasizing its “ethical” sweatshop-free production to “sexy T-shirts for young people” — but what interested me was its new internal emphasis on efficient operations:

The company’s — and Charney’s — image had gotten so much attention that nobody seemed to bother checking into how its actual business might have changed. So I met with Marty Bailey, the company’s vice president of operations. Quiet, serious, soft-spoken, and fully clothed, Bailey was an industry veteran who had begun his long education in manufacturing efficiency — and the hard realities of globalization — with Fruit of the Loom more than 20 years earlier. He had come to see offshore outsourcing as a mixed proposition. He believed that its promised labor savings had been diluted by the costs of moving materials to the cheap-labor haven and back, and by sacrificed quality. He believed that with the right plan, a U.S. manufacturer could still make money.

American Apparel’s factory was, he reckoned, the 41st manufacturing facility he had walked into with the mission of improving efficiency. The company was producing 32,000 pieces a day and struggling to keep up with orders. In months, Bailey’s system was churning out 90,000 pieces a day and would eventually reach 250,000. While the company was projecting an air of almost reckless decadence in its ads, it was quietly building a thriving made-in-America business model.

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