GAP Will Focus On Developing Brand E-Commerce In The Future

E-commerce has more and more impact on the traditional operation of clothing brand.

A few days ago, Gap's new CEO Art Peck said that in the future, GAP will enter the 3 retail mode, focusing on the development of brand e-commerce and mobile terminals.

Sales ability.

Peck said that once the specific strategy was introduced, it would "inevitably" close or reduce some of the shops under the line.

At present, there are 3680 GAP retail stores worldwide.

"He wants to

As the main area of consumer interaction, he still doesn't know how to do it. "

According to Fast Company Danielle Sacks.

But he will not refuse to try new ways, such as the update he mentioned.

Mobile phone registration, electronic wall display, clothing RFID identification technology, and even GAP vending machine.

At the same time, Peck realized that if we want to compete with ZARA and H&M on electronic businesses, we must speed up the brand new speed.

At present, from start design to new product store, GAP takes ten months, that is, three times of ZARA and H&M.

Peck hopes to compress the cycle to 30 weeks.

GAP, as a late Street brand entering the Chinese market, has suffered a lot in occupying market share.

Fast fashion brands expand by opening shop speed. Only in the fourth quarter of last year, GAP opened 10 new stores, 32 UNIQLO stores, H&M 22 home and 14 MUJI products.

The total revenue is going up, but the profit rate of single shop is very low.

GAP's total revenue in the first quarter of 2015 was 736 million yuan higher than that in the fourth quarter of 2014, but its net profit margin dropped by 1%.

The sales revenue of the same store decreased by 4% compared with the same period last year.

Coincidentally, American Apparel's CEO Paula Schneider also says that the volume of goods on the physical shops will soon be reduced, and the focus will be on online stores, though this has not brought too much profit to the brand.

However, they have hired the first chief official of digital commerce to strengthen the online experience, to a certain extent, indicating their reform.