Why Is Gap Now Reduced To The "Bottle Of Oil" Of The American Apparel Industry?

Used to be an American citizen.

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Why has he become a "bottle of oil" in the American Apparel Industry? All this stems from Gap, who wants to be different and not to be too ordinary.

In 70 and 80s, European brands invaded the United States, and Gap was born in a timely manner.

The cowboy has won the American, cheap and cheap, basically can not see the design of Gap, and even developed the difference between the Europeans' "casual and casual" style of dress, and the brand parent Gap Inc. (NYSE:GPS) has become the largest clothing Brand Company in the United States. The company also has a similar style and cheaper price Old Navy Old Navy brand.

It is precisely by virtue of the "ordinary", Gap Inc. Cape group in the beginning of this century proud of the world, became the world's largest clothing group, and Gap GAPP founder Donald Fisher and Doris F. Fisher three sons Robert J. Fisher, Robert and Gap, total wealth is still up to 60 billion billion.

Today, however, the Gap Inc. Cape group has been completely surpassed by rival Industria de Dise n o Textil (Inditex) SA and ITX.MC (ITX.MC) Indo Textile Group, H&M H&M & amp; Hayne (Maurice) group, and the group of Maurice and de surpassed. In the year of 2005, the scale of the company is less than half of them. When they become the world's first and second largest garment groups, the size of the group has shrunk. What's more, the overlord of the clothing industry has been floating and sinking for the past 10 years, and it is still unable to restore the recession.

In September, 7 Japan Wednesday, the CEO of Gap Inc., "Arthur" Art "Peck" (Art Peck), once again criticized the "Gap" brand failed to keep up with the trend at the annual retail summit held by Goldman Sachs, Goldman Sachs.

Art Peck has been self reviewing and criticizing Gap cover in the interview and earnings analysts' conference call since he took over CEO in January February 2015. Even so, he also failed to make Gap's business resume, and its brand store sales continued to decline for nearly 20 months.

Art Peck said at a summit on Wednesday that consumers' consumption habits have changed, and they have no habit of filling wardrobe. Besides, prices have also caused extra pressure on consumers in the economic downturn.

At the same time, there is no special attention trend and the necessary fabrics and styles to attract consumers to buy the brand of the group they are in charge of.

At the end of the summit speech, he again expressed the need to rebuild the Gap store.

In addition to that, Art Peck also said at the summit on Wednesday that Gap may benefit from the closing of Macy's Inc. (NYSE:M) Messi store, because on the one hand, the rent can be reduced, and on the other hand, it can lose the volume of traffic to the group in charge of it.

This statement also shows that Art Peck has no confidence in Gap's future.

Gap became the object of imitation in the apparel industry after becoming a "national brand" in the United States. Its product strategy of "basic" and "ordinary" products was applied to American Apparel, Abercrombie & Fitch, A e ropostale, and the above brands were built on the basis of Gap gene.

American Apparel takes "made in America" as a gimmick, supplemented by strong sex suggestive advertising marketing; Abercrombie & Fitch, with its unique shop marketing strategy and store concept, has attracted a large number of young audiences trying to create "unruly" style, while the group's Abercrombie kids and Hollister strategy have almost copied Gap Kids and Old Navy strategy.

American Apparel, Abercrombie & Fitch, A e ropostale, the three largest brands of young people, after copying the Gap Gap cover style, not only consumed the share of Gap, but also achieved great success before reaching the peak of the financial crisis.

However, after the financial crisis, the common factor of Gap from the success to the degradation is the role of "common" in American Apparel, Abercrombie & Fitch, A e ropostale, and the three brands are falling rapidly together with Gap, and now two have gone bankrupt, and the remaining Abercrombie and Fitch are also falling apart.

Abercrombie & Fitch has recorded a quarterly rebound after changing its marketing strategy. It thought the problem was in marketing, but the latest quarterly report showed that the final problem was attributed to the product.

T-shirt, cowboy, the style that once swept the United States and influenced the world, made the American style brand without fashion to become the representative brand of the fashion industry. However, with the growth of the millennial generation and the arrival of the "15 second celebrities" technology and social media era, the once successful factors of "ordinary" and "basic funds" have become the "original sin" of the brand decline.

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In addition, the global economic downturn has made "ordinary" and "basic" clothing "guilty of crime" because consumers want to spend more money than ever before in a recession, instead of buying a ubiquitous basic fund and "exploding money", which is why the real big brands in recent years have hardly produced any "exploding money", whether they are clothing or handbags.

Here, we have to refer again to the iPhone sales and sales slump, which has already been doomed after the luxury mobile phone became an arcade.

As Gap's rival, H&M and Zara have grown rapidly in the past 10 years.

Among them, H&M has been widely concerned by cooperation with designer and luxury goods. The brand has been released in Paris fashion week for the past two years.

As for Zara, it relies on its industry-leading fast fashion mode, small SKUs, fast rising, fast logistics and other tough infrastructure.

In addition, the Japanese brand Uniqlo UNIQLO, with its rapid expansion in the Chinese market, has become another leading brand in the fast fashion industry. The founder and CEO Tadashi Yanai Ryui Masa of the Uniqlo Fast Retailing Co. Ltd. (9983.T) fast marketing group was once admitted that the chief executive officer of Gap Inc., the former chief executive of the GAPP group, was the spiritual mentor. It was precisely when he saw that he led the company to the summit and started to build up a brand.

On Thursday, all the four major brands of Gap Inc.'s Cape group were down.

Morningstar analyst Bridget Weishaar said in an interview that "Gap" was a cheap and cool representative in that era, but now it is out of date.

There is no doubt that at the end of the last century at the end of the rock and roll trade and the suit as a orthodox school, Gap's Cape's T-shirt and cowboy were the real rock and roll that were regarded as Cool. As the initial public was surprised at the appearance of the billionaire in Silicon Valley, as time went by, the pioneers were becoming normal, while Gap's style without style was disliked by the new generation of consumers.

In addition to "style", Bridget Weishaar also said that with the emergence and growth of a large number of fast fashion models, Gap's products are actually saturated.

Of course, the decline of Gap Inc. Cape group is definitely not just for the above reasons. On Thursday, the four major brand websites of the company, Gap.com, OldNavy.com, BananaRepublic.com and Athleta.com, were all downtime, and the company said on the website that the website was upgraded.