American Eagle and the Denim Hijab

Author

Karen A. Berger, Ankita Singh

December 31, 2018

Region

North America

Topic

Marketing & Sales

Length

3 pages

Keywords

market opportunity

Positioning

market potential

market strategy

strategic management

Journal of Critical Incidents

Student Price

$4.00

Target Audience

Undergraduate Students

American Eagle (AE) decided to test the waters and offer a denim hijab made with soft denim fabric in an indigo wash on its website in July 2017. The product description encouraged customers to “Wear it your way. Make it as original as you are.” Two weeks later it was completely sold out. While journalists from many online platforms were effusive in their remarks about how AE had made an important gesture, not everyone was thrilled with this effort. Some customers commented online that the hijab was not American, and that they would think twice about buying AE again. Others were not that measured or kind in their remarks. What should AE Management do next? Should they continue to offer this item and others like it? Or should they back off completely?

Learning Outcomes

Define a new market in terms of the similarities and differences with an existing market
Examine information about the size and potential of a new market, and explain what it means in terms of market opportunity
Analyze a new market and identify strategic directions that could be taken on the basis of brand image and positioning
Make a recommendation for a company about a market opportunity and its potential

Submitted by Gordon-Amber on Apr 29, 2024

Rating

I beleive that AE shoud contiue a line of Modest Fashion becuause it shows cultural diversity and adds variety to their clothing line. AE desires to support and provide clothing for all customers no matter where they are from. Yes they may lose profit from some American, but they may gain some from others who support the cause.

Submitted by Riggs-Justyce on Apr 29, 2024

Rating

This case really showed how Corporate Social Responsibility really affects companies business. What AE was doing was not harmful - only trying to practice CSR and the backlash from the society really affects their business.

Submitted by Hunter-Taylor on Apr 29, 2024

Rating

I think sometimes people take things a little too personal that shouldn't be preceived in a bad way. I feel as though Arabs should have been kind of honored that American Eagle was designing a hijab. I personally have never seen a denim hijab, which could be worn with casual wear. I don't think American Eagle was trying to be offensive in any way.

Submitted by zilton-kennedi on Apr 29, 2024

Rating

American Eagle did make a very sound business decision to be culturally accepting and represent the Muslim community. I do hope that it isn't just a business decision, I hope that AE is seriously practicing CSR.

Submitted by Bruce-Jakobi on Apr 29, 2024

Rating

This was an interesting, well-written case that really makes you think. In my opinion, if i was a part of AE management, I would continue to sell the hijabs. I say this because the high approval reviews and how quickly they sold out will probably outweigh the few who would think twice before coming back to AE. Selling hijabs is also a way for AE to stand out from their competition, but I might hesitate before selling many other items like the hijab because you don't want to "poke the bear" too much.

Submitted by Pao-Yi-Chen on Apr 29, 2024

Rating

I do surpport American Eagle's decision, because I think the company is just showing the respect to different religion, such as Islam. Different culutures' people have different preference, they like different styles of clothes. For example, Asian girls are conservative in the way they dress, but American girls dress more fasion to the class. Same as religion, different religion has its own wearing preference to support its religion. I don't think that AE should back off its decision.