Why is it that american apparel is popular. Selling simple clothing isn't anything new. This store definitely started off by selling simple clothes that are "made in america"- but hipsters don't really care about their clothes being made in american, look at converse shoes, those certainly arn't, yet people wear em' all the time!
There is a cycle in play.
1)At first it was that some really cool kids from soho probably walked into this store that had a couple things they liked and noticed how easy it was to steal them. Since they were poor- they did.
2)Those cool kids get there pictures in some trendy magazines, wearing these somewhat plain BUT DISTINGUISHABLE clothes
3) then the rich white kids from the suburbs see these trendy kids ask their parents for money to buy this now over-priced "staple wardrobe items!!"
thus the company stays in business... but not for long.