Aeropostale is a clothing retail that employs both the direct and indirect distribution systems. Its products are sold through established off-mall locations such as stores (outlets) in the United Arab Emirates and the United States where customers can buy directly, online through its e-commerce site and use of third party distribution channels to deliver products to consumers.
In a direct distribution system, the company has over 900 stores in the United States, Canada, United Arab Emirates, and Puerto Rico. For the company to promote more sales, most of the stores are situated in a shopping mall and large market areas. Hence, it enhances accessibility by most of the customers. This allows the customers to purchase products directly from the stores. The company’s stores are organized such that single store stocks products are for specific age group. Direct channels are important because they help control the flow of products, allow quick exchange of information between the producer and consumer, and provide fast reaction to demand changes.
In indirect distribution, the Aeropostale Company employs two strategies that include the use of e-commerce platforms and third part distributors. The third party distributors receive and ware house the company products awaiting redistribution into the stores that are licensed to merchandise the company products. In the e-commerce platform, the company uses emails, websites, and social media platforms to reach the clients. Through the utilization of the e-commerce sites client is allowed to place their orders online. The company then depends on the third party shipment and transport companies to avail the ordered products to the customer. In the United Arab Emirates, the e-commerce model is not well established like in Canada and the United States. Through this approach, the Aeropostale Company can access a wider market even in regions where they have no stores.
Both direct and indirect distribution channels help the Aeropostale Company in the realization of planned targets and increase sales volume as well as strengthening the company’s market position (Bellin).
Socio-economic and Demographic factors
The society is continually changing, affecting our social life. The shifts in the population and social factors have a bearing on businesses in various ways. It is, therefore, necessary for any business organization to analyze these changes so as to maintain their relevance in the market. The Aeropostale retail marketing strategy has targeted its customers with the different type of clothes and fashion based on various age groups. The company recently has introduced the flirty tomboy brand that targets the teenage population who are between 14 to 17 years. This is influenced by the changing market trends and increased consumer demand from the age group.
Some of the changing social and demographic factors that impact on the needs of these consumers and size of markets include the change in lifestyle, income, age distribution, education or literacy levels, population growth rate as a result of immigration as well as emigration among others (Whiteford).The company has also adopted branding of products to fit well with the teenage lifestyles. Different regions have different trends, for instances in Japan teenagers are more comfortable with the Tokyo darling brands as compared to the Brooklyn darling which is more popular in the United States.
Use of social media platform and other web platforms, the company, is able to reach its target market. A Large population of the youthful generation uses these platforms to access the latest fashion trends. Hence, Aeropostale Company can secure its market through meeting its target population’s expectations. All these macro environment situations have influenced Aeropostale company performance significantly, giving it a competitive advantage over other firms.
Work Cited
Bellin, Howard. "How Healthy Are Your Marketing Channels?". Journal of Marketing Channels 22.2 (2015): 153-155. Web.
Whiteford, Peter."Inequality And Its Socioeconomic Impacts". Australian Economic Review 48.1 (2015): 83-92. Web.
