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    Gap Relies Entirely On Cheap Brand Old Navy Support.

    2015/3/11 20:53:00 46

    GapOld NavyFashion Brand

    ArtPeck, CEO of Cape group, said that restructuring the Gap brand is still the most important goal of the group.

    In his view, the current problem of Gap mainly appears in the coat part, and there is a situation of unsalable sales. The main problem is that the style is unsightly and not enough to cultivate oneself.

    ArtPeck said the performance of Gap was unsatisfactory to everyone, and the group was ready to fine tune the dress of the flagship store.

    Although the brand name Gap has many problems, its cheap brand Old Navy is outstanding.

    Benefiting from the new Old Navy store in Greater China, the brand's income in the Asia Pacific region reached 48 million US dollars in the fourth quarter of 2014, up 77.8% from 27 million US dollars in the same period last year, and the annual income was 149 million US dollars, up 93.5% from the 77 million US dollars in the same period last year.

    It was with OldNavy that the overall sales growth of the group in 2014 was basically flat.

    It is understood that unlike the Gap brand, the Asia Pacific market dominated by China has already given priority to Europe becoming a key market for the development of Old Navy (in 2013, the brand made full efforts to develop the Japanese market, and all 18 stores in Asia were located in Japan).

    Compared to the Gap that entered China in 2010, its sister brand Old Navy came even later.

    It was not until last March 1st that Old Navy's first flagship store in China officially opened.

    On the day of the opening ceremony, Ke Weijie, President of Jeff Kirwan, the parent company of Greater China, came to speak in the rain.

    Though

    Old Navy

    The salesmen tried to explain their relationship with Gap to customers who were "busy" and "fresh looking".

    But people who have been to the United States do not seem to be able to buy it. "I see Gap everywhere in the United States, but I rarely see this brand."

    This sentence is really poking at the core.

    Popularity seems to be Old Navy's urgent need to improve (perhaps many consumers do not yet know that Old Navy belongs to the brand of Gap group), but it does not matter at the moment. Because of low price and high frequency discount, Old Navy seems to be more competitive than Gap in China.

    As a member of Gap, Jane has been receiving promotional messages from Old Navy since last year.

    This year, she paid a little attention. "Every month in February, she receives a discount message every week."

    "The new model I bought last week will be forty percent off this week," Fang said.

    In a previous China consumer survey, Accenture pointed out that Chinese consumers' brand loyalty is weak, and only half of the respondents will be loyal to special brands, while the other half will often walk among brands.

    stay

    Clothes & Accessories

    Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., seems to be a double-edged sword, and even a new brand.

    He believes that people will buy this brand because of your discount, but long-term low price can not maintain operating costs. Once there is no discount, consumers will lose.

    Many people in the industry believe that in the fiercely competitive China, as a latecomer, with H&M,

    ZARA

    Under the background of the competition of the same type of consumer brands, the pressure on the market to leave Gap is enormous.

    In addition, the latest Gap entry into China clearly does not yet have sufficient knowledge of the Chinese market.

    A person who had worked in Gap told reporters that the price of the brand was too high, the renewal speed was too slow and the style was not enough to tide over, which was the weakness of the brand.

    RET Rui Yide, China commercial real estate research center, provided data to reporters. Gap has 97 in the three quarter of last year and 10 new in the fourth quarter.

    "In contrast, UNIQLO opened 32 new businesses in the fourth quarter of 2014, while H&M opened 22 new products and 14 new MUJI products."

    Shi Jin, chief analyst of the company, said that the speed of Gap expansion is at normal level.

    It is reported that at present, the company has three brands: Gap, Banana Republic and Old Navy.

    As of January 31, 2015, Cape Group operates 3709 stores worldwide, of which 3280 are direct battalions.

    Cape group said it will continue to add 40 stores in Greater China area in fiscal year 2015.


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