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American Apparel's Little Slice of Southern China

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American Apparel might make their clothing in the USA, but they're selling it at usual retail prices in China.

Committed to discovering the rumored AA store in Shenzhen, China, a huge industrial city where most iPhones are coincidentally manufactured, a blogger from Hong Kong Hustle braved the border and its swine flu precautions to check it out, as Hong Kong curiously has no American Apparel.

What he finds is a store larger than the typical US shops, but filled with the usual items at their equivalent prices. Thankfully, he then launches into thoughts on AA's Chinese arrival:

The concept of launching American Apparel stores in China itself is interesting. Since China is the world’s low-cost producer of clothing, it means that they’re not looking to compete on price. American Apparel seems to be relying on their alternative style and image, however, I’m not sure that these two factors have the same relevance that they would say in Europe or even elsewhere in Asia (for example in the mature Japanese market.) ‘Alternative’ may not be a strong selling point in an emerging market.
Perhaps we shouldn't be surprised then that it's next door to a Wal-Mart? This happens to the be the third location for AA in China, after Beijing and Shanghai. Who wants to bet that it will also be the last?
· American Shenzhen! [Hong Kong Hustle]