Abercrombie & Fitch Co. (ANF) – “Sex Can Sell” Is a Fine Line to Walk: Victoria’s Secret Just Stumbled

Some advertisers argue that Abercrombie & Fitch Co. (NYSE:ANF) has failed to keep up with a new generation of teens who want a more individual style, and I bet that’s true in some aspects. But consider a 2008 ChangeWave survey of 4,000 shoppers. According to the survey’s results, Abercrombie was the store consumers said they’re “least likely to shop at in the future.” The primary reason? “Risque self-portrayal.” Top responses included: “Seriously disagree with their philosophy,” “Overly suggestive catalog,” “Don’t like their advertising scheme,” “Moral values,” and “I don’t like the image they project.”

Do parents have the final say?

These results indicate that there’s a potential long-term risk to overly sexual advertising aimed at children and young adults. A company may get away with such antics in the short term, but in the long term, are consumers really going to shell out money to a store they think is corrupting their kids? Probably not.

There’s an active pushback among parents to stop what they consider to be the sexualization of young girls. As such, if a company is seen to be promoting just that, it’s likely that company will face the wrath of boycotts, damage to its reputation, and eventual losses in revenue.

Know your consumer
It’s easy to see how sex sells, but only to an appropriate audience. Consequently, companies that continue to push the boundaries of overly sexual advertising to inappropriate audiences are likely to end up with unhappy consumers. And those customers could be lost for life. If a company seems it’s not getting the hint with overly suggestive advertising, investors may do well to question its financial future.

The article “Sex Can Sell” Is a Fine Line to Walk: Victoria’s Secret Just Stumbled originally appeared on Fool.com and is written by Katie Spence.

Fool contributor Katie Spence has no position in any stocks mentioned. Follow her on Twitter: @TMFKSpence. The Motley Fool has no position in any of the stocks mentioned.

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