Layout China Mainland Market Lost &Nbsp; GAP Gambling Online Sales

When international " Fast fashion Among the four giants are from Spain. ZARA And Sweden's H&M, and from Japan. Uniqlo It has already taken the lead in the layout of the Chinese market, and the GAP that entered China at the end of 2010 has obviously lost its initiative.

After losing the opportunity, the mode of online sale has also aroused the doubt of the industry. "Although online sales are a trend, it is very risky and costly to build an online sales platform on entering China."

A few days ago, GAP had to sell its own website and had to sell it through the third party B2C channel.

　 Miss the opportunity

GAP, an American clothing giant, once racked its brains to improve its performance because its competitors had already occupied the emerging markets in Asia.

At the end of 2010, China's market share of Zara, H&M and UNIQLO grew rapidly. The first flagship store of GAP also opened in the mainland of China.

"Is it time for GAP to enter China?" an industry insider pointed out that although the GAP president of China, Yang Ming Ming, said that this node was entering China, it was the right time. However, GAP could hardly ignore one problem. As the latecomer of the mainland China's clothing market, GAP had to pay higher shop opening costs than its competitors.

The insiders also pointed out that GAP has indeed lost the edge compared with other competitors.

Faced with the same strength and more innovative opponents, GAP's road to Chinese development is stagnating. In 2010, Zara's group Inditex opened 75 new stores in China, and pointed out in its earnings report that there will be 120 new stores in China in 2011.

According to H&M's latest earnings report, 250 new stores will be opened this year, mainly in China, Britain and the United States. As of August 2010, UNIQLO already had 76 stores in China and plans to increase the number of stores in China to 1000 by 2020. UNIQLO has begun to try online sales in China, and its performance is good.

To keep pace with these international competitors, GAP has to expand rapidly, and reporters from GAP's earnings report found that since 2005, the number of GAP stores has been leveling off, and for its newly acquired brand Athleta, only one store has increased in the past year.

The annual report shows that GAP currently has 3068 stores, and opened 27 stores in the fourth quarter of 2010, but also closed 41 stores. Asia's gap stores were 135 in January 29, 2011, and 120 in January 30, 2010. Last year to this year, GAP closed 41 stores in the United States.

Reporters learned from GAP China that the brand entering China is only GAP of the five brands of GAP, while the performance of GAP brand is not satisfactory. In Gap2010, the turnover increased by 2% compared with 2009. However, compared with the 5 billion 958 million sales in 2008, the sales volume of 5 billion 735 million this year still dropped by about 4%.

Not only that, GAP began to decline in 2006, but sales did not exceed 2005 in 2010. In 2005, GAP group's net sales amounted to $16 billion 19 million, compared to $14 billion 664 million in 2010. {page_break}

Self built network sales platform sales performance doubtful

At the critical moment of the decline in 2008, GAP turned to online sales and the expansion strategy for overseas. It is found in its annual report that this strategy has achieved initial results.

Chairman and chief executive officer of Gap, USA Glenn Murphy (GlennMurphy) in the 2010 earnings report, we now start online sales in 31 countries to consumers in at least 90 countries.

Murphy has also been worried about overseas operations. "We still have limited experience in operating in most countries. In those countries where we are involved in business, we have to face major competitors who already have a certain base, and local real estate prices, employees and transportation problems will make us different from those in areas with successful experience."

After GAP entered China in 2010, unlike the other three competitors, GAP adopted the strategy of online and offline operation. In terms of network business, Gap has chosen to cooperate with Shanghai Yi Shang Network Information Co., Ltd.

"This strategy is no problem at all, but so far, we have not seen the successful operation of the companies under the online and offline operations." B2C analyst Fang Yingzhi pointed out that in addition to the traditional competitors, GAP's online sales in China also face at least competitors like fans or Mcglaughlin.

"I don't understand why GAP entered China and chose to build its own network sales platform," said Chen Shou Shou, an analyst at B2C.

What is even more worrying is that GAP obviously has little experience with China's Internet environment. "If we want to build such a network sales channel that requires long-term capital investment, if there is no experience of localization, it is not an easy task." Chen Shou delivers.

And this successful experience is UNIQLO, "UNIQLO chose China's third party network sales platform for sale, which may be a relatively low risk way for traditional brands to enter the B2C market at present." Chen Shou delivers that "the third party platform can obviously avoid risks and reduce costs when there is no understanding of China's market environment."