American Apparel's Second Life

When American Apparel chose to unveil its new denim line, it headed for a somewhat obscure Web site called Second Life (secondlife.com) to give the public its first view.

The move was a bit unorthodox, given that Second Life is a virtual world where everything is computer-generated. Yet, that fits in with the American Apparel culture—site visitors are generally young, forward-thinking and, like American Apparel, not all that label-conscious.

The move appears to be paying off. Since opening the store June 17, the Los Angeles–based company has sold more than 3,000 pairs of virtual garments. On the site, users create computer- generated clones of themselves by way of an Avatar figure that allows them to navigate the Second Life universe.

To outfit their Avatars, users can visit the American Apparel boutique and buy T-shirts, tanks and any of about 20 styles that are similar to what is found in a bricks-and-mortar store. They pay in “Linden dollars,” which can be exchanged for real currency. The virtual garments cost only about a dollar each.

Although American Apparel isn’t going to get rich off 99-cent virtual T-shirts, the company does see opportunities. About 80 percent of Second Life visitors are between 20 and 30 and divided evenly between men and women, which plays right into the company’s profile.

To connect virtual customers to its bricks-and-mortar stores, American Apparel has developed promotions such as a 15 percent discount coupon for use in them, but the immeasurable value comes through building its brand with a new subset of consumers. Second Life’s universe is at 350,000 members and growing. The site has developed a cult following in the gaming community, but it is starting to transcend that, said American Apparel’s Director of Web Services Raz Schionning, who likens Second Life to an interactive version of MySpace.com, the online community of people tied together by like interests.

“It gives the concept some humanity and makes you look at yourself,” said Schionning. “You can create some hyper-idealized or outlandish version of yourself or a more factual rendition and wander around this world. It wraps the idea of online social networking together. It feels real, and the interactions are more meaningful than venues like MySpace.”

American Apparel officially opens its Second Life store on July 28, when it debuts some more new styles, including its denim slim slacks, which will hit bricks-and-mortar stores this fall. Visitors, of course, won’t be able to touch and feel, but the highdefinition graphics give them a 3-D view of what the garments are like in real life.

American Apparel is the first major corporate entity to enter Second Life, yet since the site was born about two years ago, commerce has always been part of its formula.

“People build houses, theaters and shopping malls. When you enter Second Life, the economy takes over,” Schionning said. “You can get a job, earn your Lindens. It develops a life of its own. The message, however, is to play with me, not to sell to me, and we respect that.”

American Apparel did not enter Second Life with the intention of making a profit, he said. Its executives were more fascinated by its culture and say that that blends in with their own, being a self-proclaimed sweatshop-free manufacturer that shuns logos.

Schionning said most of the feedback from the Second Life community has been positive. It has not been as kind to other companies trying to break in. American Apparel did encounter some resistance when it launched last month: A small group of Second Life members protested the company’s ads, which sometimes feature young men and women in suggestive poses.

Yet, American Apparel’s presence has created a buzz through a number of gaming blogs and other sources. Schionning said the company’s chief executive officer, Dov Charney, was even getting positive feedback from business associates.

“He’s pretty fascinated by it all.” —Robert McAllister