It is always interesting when you take an outsiders perspective. In terms of traditional American retail businesses, this means stepping back from the rat race of cost of goods sold and market share and taking a look at the current way in which business are run.
The view of what an American business had to be to succeed has changed in the last century. Such an image used to consist of strong work ethic, morals in business, and the will power to succeed. It was the American dream to start such an American company, in this land of opportunity.
Times has affected this idea. Now, the image of an American business is one that is based and operating in America, but whose actual production occurs in Asia. This is the norm. Budding new entrepreneurs dream of establishing such enterprises of volume and cheap labor so they they may reach the pinnacle of capitalism.
But the time has come where a counter-culture to this business structure is beginning. American business has come back to its root in the form of revolution.
A highly publicized and praised company, American Apparel has set a precedent of morals and quality in wholesale clothing. The company operates out of one factory in Los Angeles, but is able to produce a staggering quantity of clothing at competitive prices. All workers have full benefits, and the average pay is twice that of the national minimum wage. But this is no charity operation. The company netted $211 million in revenue in 2005 with a healthy profit of blank and is growing rapidly. It is good solid business practices and an excellent product that allows this type of success.
This is a far cry from the world of extreme cost cutting found in many of the most popular apparel companies of today.
