More on operations as marketing.

marketing+framework.001 001 More on operations as marketing.

I wrote a little while ago about how company operations are starting to subsume the marketing function. Eric pointed out that the recent announcement from American Apparel that they are putting RFID tags on all their garments is another reminder of this fact.

In fact, American Apparel has been a shining example of how an operational decision can become a marketing idea. Its “vertically-integrated, sweatshop free” manufacturing has arguably been more effective at growing its business than its seedy advertising (although the exploits of its founder could top both of these).

It is strange then, that AA appears to view the inclusion of RFID as an simply an inventory management tool. They are quoted on Websitegear saying:

“American Apparel takes pride in being a vertically-integrated manufacturer, distributor and retailer of fashionable, high-quality basics, and we embrace any technology that allows us to further realize this vision to better serve our customers,” said Zander Livingston, RFID technology director for American Apparel. “We look forward to deploying the technology on a larger scale so that our entire organization can leverage the value of RFID to improve overall inventory management processes and enhance our customers’ shopping experience.”

I think AA have an opportunity to take this a lot further by building a website on top of the RFID tracking that exposes the data to its customers as well. For example:

RFID could let me know who at the LA factory made my garment and then let me see its trip to my store.
Adding a simple carbon calculator on top of this would enable AA to show that its products also have lower carbon footprints than its competition.
These data could make celebrities of its employees – imagine if a certain worker’s pieces became more sought after?
Additionally there are a host of post-sale opportunities for allowing customers to create communities around the clothing.
Or enable services like outfit configurators based on the AA garments that you own.

The opportunities are quite literally limitless, I’ll be eagerly watching to see what happens.

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  • Adrian
    Very true Kathleen, not a great illustration but best I could do in 2 minutes. However, I think that tagging the RFID with manufacturing information like cotton source, etc. would still be interesting for consumers.


    However, my main point was RFID is a fantastic platform for customer-facing services.
  • Kathleen
    I was looking forward to reading your thoughts on operations migrating to marketing angle (not a new concept) but you only mention AA's (specifically) vertical model and tangentially, the potentiality of RFID tracking -in one context. It's not tenable to track who made it. Operationally, they use a bundle method. No single person makes a garment start to finish. The best they could possibly do is lot tracking by RFID which they most likely already do internally but the notation is meaningless to consumers being an internal control mechanism. It would be worth the investment of tracking process per operator were the items made singly and were they more costly items but face it, these are tee shirts. I've long made the same argument of putting a face to sewing operators but again, it's only possible in single unit production for costlier goods and best executed via individual operator assigned hang tags (ideally with their photo and bio).
  • Joey
    Great article. I think this a great progressive company. Unfortunately even WSJ has stooped to tabloid journalism about the eccentric owner which seem to be the only thing most media cares to focus on.
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