Can GAP Make The Chinese Market Possible?

GAP group held a 5th Anniversary Day commemoration day in the Chinese market at the end of November.

The company invited JJ Lin, an artist, to help him. This is also one of the spokesmen for the company's image in Asia.

When he first entered China in 2010, GAP came to Xun Zhou for endorsement. At that time, Xun Zhou was wearing GAP's most classic tannin series.

Compared with other American brands who want to enter the Chinese market, they are still looking for foreign faces to represent their images. GAP is the one that takes the floor.

Now five years have passed.

Compared with the rapid expansion of other international apparel groups in China, the apparel group, once known as the US national brand, opened business in China.

According to the latest data obtained from GAP group, the group has more than 140 stores in nearly 40 cities in China.

GAP said it will add about 10 stores before the end of the fiscal year 2015 (January 2016).

Compared with GAP's nearly 3300 Direct stores and more than 400 franchises, China accounts for a small proportion of its global distribution.

Now, GAP says that the Chinese market should be regarded as the engine of its global development.

In fact, today's Chinese market has become a battleground for all kinds of fast fashion players.

In the face of these rising stars such as H&M, Zara and UNIQLO, is GAP able to break through in the increasingly competitive Chinese market?

The most well-known brand of cap Pu Group should be the brand GAP of the same name.

Xiao Yun was a frequent visitor to GAP when he was studying in the United States ten years ago. "This shop is too large in the US. You can always see the blue logo when you go shopping."

So, no matter what is missing, girls always go in and buy two pieces.

"The price of GAP is much cheaper than that you buy clothes in the domestic market."

Xiao Yun added, "of course, that's the time."

The fashion brand, based in San Francisco, once occupied the wardrobe of young fashionable customers.

Shharon Stone (SharonStone) even wore a high necked shirt in his home and a Valentino (Valentino) skirt to attend the Oscar prize presentation ceremony in 1996.

GAP captured the group of young people who took the lead in the 90s of last century.

Now it tries to open up a new generation of Chaozhou's wallet, but has encountered all kinds of troubles.

According to statistics, the company has replaced 4 CEO in the past 15 years, but the sales performance of the company has gone from bad to worse.

In June 2015, GAP announced the closure of its 1/4 store in North America (175), while cutting 250 employees at headquarters.

This is also the first major move of the group's new CEO ArtPeck about sales channels.

ArtPeck, who took office in February 1, 2015, was responsible for group growth, innovation and digital sector. His high hopes were to reverse the situation.

"I am disappointed, but I am not surprised," CEO2015 said at the earnings conference in May, "GAP women's clothing business is very difficult and faces challenges for several quarters."

For North America and

The closing of stores and layoffs, and the reply from GAP to the first Financial Daily reporter is the strategic adjustment of the group headquarters: "we always insist on opening suitable stores at suitable locations to better serve consumers.

Therefore, we decided to make strategic adjustments to the North American and European markets and close some stores. "

GAP stressed: "this adjustment will not affect our business in Greater China."

As AbintaMalik, senior vice president and general manager of Greater China group of GAP group, said, "China is the most dynamic market in the world for apparel retailing. GAP group is confident that China's market will remain stable and sustainable."

GAP wants to exert its strength to the Chinese market. It seems that it is a little late for many people in the industry.

Even when the brand entered China in 2010, many viewpoints believed that there were many points of view that it had lost the initiative: late entry participants always suffered a loss in occupying market share.

Look at its international competitors when they came to China: H&M and ZARA entered China in the same year in 2007, while UNIQLO was earlier and opened a joint venture in China in 2001.

The 2013-2017 year China fast fashion industry business model and investment forecast analysis report released by the foresight Industry Research Institute shows that since 2012, the major fast fashion brand enterprises in the world have continued to accelerate their layout in the domestic market, making the competition faced by fast fashion brands in China more brutal.

Can GAP break through in the increasingly competitive Chinese market? It is too early to judge.

However, the good news is that compared to the positioning of H&M and ZARA, the original target customer of GAP is "the whole family".

In other words, in GAP shops, children's clothing will surely be found.

"I seldom buy clothes for myself at GAP now, but of course, if there are serious discounts, I may bring a few.

It's mainly for my daughter.

His children's clothes are very cute, with many styles and good quality. "

Xiao Yun told reporters.

It is true that children's wear has become a reality nowadays.

One of the highlights of sales in China.

Take the "double eleven" in 2015 as an example, GAP ranks second only to Semir's Barbara in the sales of children's clothing.

GAP is somewhat "outdated" than its competitors.

First of all, its update speed is not faster than H&M and ZARA, nor is the latter two "fashionable".

GAP's products are obviously more like UNIQLO in design and location. Both of them seem to be "basic funds" in the industry, but the price of GAP is much higher than that of the latter.

An unnamed GAP garment manufacturer told reporters: "there are some problems with their initial positioning."

Just like those brands that sell the middle class, such as Marks&Spencer and Abercrombie&Fitch, the price of GAP is set according to the level of the middle class. But at present, there are many similar brands and products in China, and the price is lower.

Two years after Xiao Yun returned to China, he finally saw GAP, but her pricing in China surprised her: "much worse than the US."

I prefer to buy other brands. "

Xiao Yun's words tell the truth. In the US and in China, the choice of consumers has increased significantly. Under the same style and quality, they choose the brand with high cost performance.

GAP began to offer frequent discounts. Its Chinese members often receive "three pieces of thirty percent off" messages.

But this does not seem to bring much popularity to the brand.

"In 80s and 90s twentieth Century, people really couldn't get into the more high-end fashion. It was business.

At the height of its heyday, the core clothing of the main stores sold well.

Kate Davidson Hudson, co-founder and chief executive officer of Editorialist, an online fashion magazine, said, "but now, everyone can see something on the T platform on social media and blogs, and everyone is very picky." (KateDavidsonHudson)

Customers want to buy them immediately after seeing those clothes. "

GAP seems to be aware of this problem.

In order to gain more share in the Chinese market, in 2014, the group introduced its cheap brand Old Navy, which is priced closer to UNIQLO.

"Old Navy has won the favor of the market, including China, due to low price and frequent promotions."

Feng Ying, an analyst at foresight Industry Research Institute, pointed out.