Abercrombie & Fitch seeks fresh threads in China, but will they catch on?

by Chen Qirui

Abercrombie & Fitch is ramping up its presence in China with new store openings in Hong Kong’s Hysan Place in Causeway Bay and Sha Tin, resuming its expansion in the city after eight years. It has also reopened in Beijing’s Taikoo Li Sanlitun, bringing its total store count in China to 26. These "GETAWAY Concept Stores" are designed with a vacation-inspired aesthetic, featuring bright, cream-toned interiors accented with greenery and wooden elements.

The brand first introduced this concept in Guangzhou in 2023 following the closure of its Shanghai flagship store in 2022. A&F, which previously struggled in China due to outdated marketing, is now leveraging strong North American sales to support its expansion. In Q3 2024, the company’s revenue rose 14% year-on-year to $1.209 billion, with Asia-Pacific sales surging 32%, driven by new store openings. Facing investor skepticism, A&F sees international growth as a key strategy.

“A&F’s price points are higher than other fast-fashion brands,” said Du Bin, Chairman of Hanbo Commercial, a commercial real estate management company’s Shanghai division, in an interview with Jiemian News. “As Zara and H&M continue to scale back in China, A&F’s timing for expansion works in its favor to some extent.”

With the fast-fashion boom fading, mall operators are becoming less accommodating to such brands. Instead, retailers with expansion capacity and financial stability, like A&F, are now in a stronger position to secure prime locations under more favorable terms.

A&F’s limited store footprint and slow expansion in the past decade put it at a disadvantage against competitors in China’s fast-fashion market. The brand’s new concept stores aim to rebuild its image, moving away from its once overtly sexualized branding. A similar repositioning has led to a turnaround in North America, and A&F is now employing the same strategy in China.

To reposition itself, A&F has moved away from provocative marketing and shifted its target audience from teenagers to young professionals. The brand has also removed its signature moose logo from many products, embracing a more minimalist and workplace-friendly aesthetic. This change is designed to attract early-career professionals with moderate spending power, aligning with post-pandemic consumer preferences for value-conscious purchases.

However, A&F’s rebranding in China is still in its early stages. The brand’s previous image remains ingrained in consumer perception, and while its new stores feature a sleek design, its premium pricing compared to brands like Zara and GAP raises questions about whether shoppers will embrace its repositioning.

“A&F has a certain level of recognition in China’s commercial market,” Du Bin added. He believes that increasing store numbers will expose the brand to more potential customers, potentially expanding its consumer base and increasing its ability to command a price premium.

In an aggressive bid to regain market traction, A&F has signed Chinese actor Li Xian as a brand ambassador, introduced its YPB activewear line to China, and partnered with Pure Yoga to offer co-branded fitness classes. It has also opened a multi-brand flagship store in Beijing’s Blue Harbor, housing A&F, Hollister, YPB, and Gilly Hicks under one roof to quickly strengthen its new identity.

Despite these initiatives, it remains uncertain whether A&F’s repositioning and product mix will resonate with Chinese consumers. In a highly competitive market filled with domestic alternatives, international brands must offer more than celebrity endorsements and retail expansion to build sustainable appeal.