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US Apparel Retailer GAP Enters E-Commerce In China (2)

2010/7/10 9:59:00 47

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Clothing Retailer GAP

Opponent's tricks

ZARA has built a set of speed wins.

business model

。

The whole process can be completed within 15 days from design, production and delivery.

This story has been called "the 15 day myth of ZARA" by Harvard Business Review.

Liu Bo, editor in chief of fashion bazaar, said that the characteristics of H&M are low price, new style, and enhance the brand image through cooperation with the designer. ZARA's brand positioning is slightly higher, basically taking the low-end brand line, emulate the design of the top luxury goods, while GAP is a relaxed and free American style.

ZARA

brand

Publicity is rare and hardly advertised. "Its advertising cost accounts for only 0~0.3% of its sales, while the industry average is 3.5%. The savings in advertising cost almost become another source of profit," says Lin Jing Xin. "H&M's brand promotion and ZARA take a completely different route, using star designers to publicize the brand.

The way to connect cheap mass brands with fashion masters is their initiative in fashion industry.

In 2004 and 2005, H&M hired the fashion Caesar Karl Lagerfeld and the famous British designer Stella Macartney to design the costumes for the brand.

In addition to different publicity strategies, ZARA and H&M adopt the strategy of "direct camp" in order to deliver goods to consumers in a fast and fair manner.

ZARA and H&M are also brands of retail chains. They have a large number of chain stores all over the world. In order to achieve the goal of fast delivery and low price, the chain stores of the two companies are directly run by headquarters, and the goods are centralized by headquarters.

However, H&M has not given up its innovation in the development of sales channels, so far its sales channels are still dominated by direct outlets, but its catalogue sales and online sales are growing steadily.

In 1980, H&M acquired the RoweHs company and began cataloging in Sweden, Finland, Norway and Denmark. In 1998, H&M opened online stores in Sweden, and then launched online sales in Finland, Norway and Denmark.

On the basis of initial success, in the autumn of 2006, Holland became the first country to open online sales outside the Nordic region.

In the fall of 2007, Germany and Austria are expected to start online sales.

ZARA

Always adhere to its "direct camp" strategy and express that it will not change in the short term.

Because they insist that it is the best way of management to let customers enter the shops, directly contact the goods and experience the goods.

Future competition

Yang Deming said that GAP's business mode is the same as those of ZARA and other major brands.

Kong Qingxi, assistant director of the Institute of business brand strategy at Communication University of China, thinks that the GAP on the 90 day of the goods cycle can not compete with the ZARA and H&M with only 12 days and 21 days in the speed, and the style is not as fashionable and distinctive as the two brands.

In fact, GAP has done a good job in product refinement. Men's wear, women's wear, baby clothes and so on are clearly classified, but this part is gradually reduced to the common character of all fast fashion brands.

And GAP choose to enter the Chinese market after the other brands enter again, and it may be difficult to promote.

GAP's brand recognition should be good, and no need to worry about no one knows, but how to base itself on the Chinese market is a big test.

For example, its stores will definitely be with ZARA, H&M and other shops, and good places are grabbed by the "first entrant". Then how to seize the cake is the next thing that GAP needs to be careful about.

Liu Bo said.

In this regard, Yang Deming believes that the biggest competitive advantage of GAP is humanization.

In addition to shops and publicity close to "hand to hand", Kong Qingxi believes that the key to GAP's opening up in China depends on pricing.

In the United States, the price of GAP is not cheap. A pair of underwear is priced at about 10 dollars, and a knitted cardigan is priced at about 60 dollars. According to this calculation, after introducing China, I am afraid that it will sell more than a few hundred yuan. If so, few consumers will buy it.