The mystic of American made products have always been interesting to me. Companies can get away with outsourcing by stating it’s designed in America. Some companies can get products 90% completed and have shipped to their home countries for finalization, but only then can the company say the product was made in America or Italy, etc.
American Apparel has been strongly stead forward with their vertical integration strategy of American manufactured clothing. The company has been known to produce clothing, such as t-shirts, hoodies, and underwear, in their factory in LA. They produced their own clothing, have in-house dye facilities, and shipped to their own retail stores. The company can respond quickly to trends and be able to stay ahead of the curve against competitors who may typical see months of planning before production and then retail.
Unfortunately, according to a recent Los Angeles Times interview, internal and external pressures are causing the company to take a long hard look at outsourcing production to overseas factories. Financial strains are the main culprits of these problems. Posting strong revenues, the company face overhead expenses befitting their quality American made strategy.
Can you still call the company American Apparel if it’s not fully made in America?