American Apparel opens a store in Second Life

American Apparel recently announced the opening of a new store. All items are for sale for only $1.00 (or less) – does it seem out of this world? It is. The boutique is opening in avatar based ‘Second Life’, a thriving gaming community where people can create digital alter egos and pay real cash for virtual goods.

American Apparel is the first major retailer to set up shop in Second Life, and since the store opened on June 17th, they have sold "about 2,000 items" for $1 or less, says Raz Schionning, the company's director of Web services.
Customers can dress their online avatars with digital renderings of slim-cut T's and dresses modeled after real-life merchandise.

According to a recent article in Business Week; American Apparel will soon “start hiring virtual sales clerks from among Second Life's citizens. And he (Raz Schionning) says the company will introduce 10 new merchandise items in July, beyond the 20 styles that are currently offered. The company is also planning to test-market its first line of jeans within its Second Life store this summer—two months before they hit physical stores in time for fall.”

Who knows whether or not this will prove to be a good move for American Apparel? I can’t see the harm. They are exposing the brand to a flocking slew of Second Life inhabitants, in an effort to not only open a new revenue stream (granted at 1 buck or less per item it certainly wont be a cash cow), but also drive traffic to its online and offline ‘First Life / Real Life’ stores. With every purchase of ‘avatar apparel’, the company is giving away a 15% coupon for redemption at the store level.

More and more we are seeing marketers adding new tools to the marketing toolbox. It’s exciting to watch as more and more companies clamor to find new ways of reaching their audience.

Howard Firestone (Our V.P. Marketing) and I were just discussing this move by American Apparel. Our thoughts; maybe we should open a research company in Second Life. Capturing the voice of the Second Life customer is naturally as important as capturing the voice of real life customers.