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Living The American Dream: How Dov Charney Fashioned His Own Success

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“Give me the chance of going to Harvard or being there when Google started and I want to be there making $3 an hour sweeping their floors. Or Apple when Steve Jobs started it,” says Charney. “Maybe I'm delusional but that's what I think American Apparel is.” For Charney, the success of American Apparel has just begun. But how did he get to where he is today? How did a Jewish Canadian college dropout become the CEO of one of the most revered and fastest-growing companies in America?

Pro-Labour: “I make more money than my competition who pays 50 cents an hour because of the efficiencies of dealing with someone face to face and paying them a fair wage,” says Charney. “I think it's really low brow to take advantage of labor cost inequalities to sustain your business. I know how to use communications, technology, and distribution systems to deliver t-shirts to the public without damaging the lives of my workers.” From paying them above minimum wage to offering subsidized lunches and free massages, Charney has made it a policy to be on the side of his staff.

Niche: From day one, Charney has been clear about who his target market is and what he needs to do to cater to them. Whether it is producing tighter and sexier clothes with bolder and more provocative colours, or putting a message behind his marketing – one of corporate social responsibility – Charney made his every move with his market in mind.

Unconventional: There may not be many other CEOs who rise at the crack of noon only to walk around the office in their underwear and freely engage in relationships with their staff, but Charney says his unconventional approach not only works for him, but has worked for the entire success of the company. It was by being willing to break the rules that Charney took American Apparel to the top.

Passion: Few people believe Charney when he says that all it took to take him to the top was his passion, but he is adamant that that was the most important factor. Indeed, it is doubtful that he could have come back from all of his low points if he did not love what he was doing.

Efficiency: “The beautiful thing about free trade is it creates an environment of competition where there's a marketplace of ideas,” says Charney. “And you know, one guy could go offshore and pull things in from China. Another guy could automate here in the United States. And may the best man win. Maybe both men will win.” Charney calls his business model an “Industrial Revolution.” By streamlining his operations and creating a home-grown effort, Charney has made efficiency his secret weapon in business.

“I want to be remembered as one of the great CEOs of our time and of my generation,” says Charney. “And I think that I'm gonna make them proud. That's my plan.”


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