GAP Betting On New Breakthroughs In E-Commerce And Emerging Markets

The US apparel retail giant GAP announced that the company has already worked with Zalando, Europe's largest clothing accessories supplier, to sell its clothing brands such as GAP and Old navy from May next year, hoping to expand its expansion in Europe with the help of e-commerce.

As early as 2007, GAP tested online sales, and online sales account for more than 10% of total sales.

These "new" pushing hands are

The decline.

In the third quarter, Gap brand sales in the same store showed a 5% decline, while Old Navy recorded only 1% growth, while Banana Republic sales remained flat, but they had been stagnant for 7 consecutive quarters.

In fact, the weakness of GAP began to appear ten years ago. In 2004, its sales volume was $15 billion 900 million, and by 2012 its sales volume was only $15 billion 700 million.

And H&M,

As soon as fashion brands are competing for their target customers and market share in the US market, Gap's dominance in the industry has been greatly affected.

The group's predecessor, CEO Gleen Murphy, implemented a radical reform in order to revitalize its business, but the effect was not obvious.

Murphy announced its resignation in October.

Before the group's new CEO Art Peck was mainly responsible for e-commerce, he saw the explosive force of online channels, so the emerging market as a breakthrough point.

In October this year, four years into China.

The number will reach 100, and 10 will be opened by the end of this year.

After landing in Shanghai in March of this year, Old Navy recently extended its tentacles to Shenzhen, Guangzhou and Beijing.

However, compared with H&M and ZARA, the total number of GAP brands in China is still at the bottom.

Related links:

In this year, Lining, 31st degree, PEAK sports, Merck international, Hyde, and other listed companies and Hongxing Erke, del Hui, Jordan and other three or four regional market hegemony, have entered the stage of market shrinkage or business pause.

In 2014, local clothing brands such as Giordano, Metersbonwe, Semir, Baleno and other brands all came out frequently.

According to the financial report, as of the first half of 2014, Baleno's parent company closed 388 stores in the mainland, and its sales staff also decreased by 3782.

In the first half of 2014, the number of stores in Bosideng dropped from 8216 to 3436, which meant that Bosteng had to shut down 19 stores a day.

The development of these garment factories is mainly due to the failure of clothing sales and wholesale, too much inventory and exhaustion of funds.

As the sales of traditional clothing industry become sluggish and inventories accumulate, the market continues to tell the news of the boss running away, so that "where the boss has gone" has become the new pronoun of the clothing industry.

In July 2014, Ding Hui, chairman of Fujian's Limited by Share Ltd, lost contact with the company.

A number of enterprises in Fujian have been exposed to operational problems again and again. HOPERISE, the fast fashion brand, and the alligator of the listed companies in Singapore, have all heard the news of the loss of their employer's wages.

Shanghai's Cheap Road clothing wholesale market is originally an old-fashioned market with bustling and bustling business.

Later, it was converted into a modern large-scale clothing wholesale market, and the monthly rent of a shop was as high as twenty thousand yuan.

However, business is like Wang Xiao er's new year, which is not as good as a year, but a shop in Cheap Road. It can sell 20 thousand yuan a day in 2012, 8000 yuan in 2013, and less than 2000 yuan in early 2014.

And a famous clothing market in Zhabei District, Shanghai, each store has a monthly rent of more than 10 thousand yuan, and no business has been completely closed.

Through the disintegration of Shanghai's clothing wholesale market and the retail market, the Chinese garment factory is still in the great recession after going from the foundry to its own brand.

In 2014, in contrast to the operation of Chinese clothing brands, international costumes such as ZARA, H&M, C&A, UNIQLO and so on have already reached the three line market, and are also selling at the same price online and offline.

Statistics show that as of the end of last year, ten fast fashion brands opened nearly 1000 stores in China.

Among them, UNIQLO opened 82 new stores, H&M opened 62 stores, and GAP opened 28 new stores.