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    GAP Will There Be Only 75 Stores In The Japanese Market That Will Remain Closed?

    2017/5/5 12:04:00 27

    GapUNIQLOFashion

      

    GAP

    Its three brands are Banana Republic (bananas Republic) with a high middle price and a noble style, and two close to UNIQLO style.

    Uniqlo

    The popular Old Navy (Old Navy), and the original authentic GAP.

    In the first quarter of 2015, Gap announced that it had closed 175 stores in North America and closed 140 in 2016, according to the world clothing and shoe net.

    This trend and others

    fashion

    The clothing brand has a consistent rhythm.

    In the Japanese market, by April 20, 2017, Banana Republic also has 49 stores, GAP and 161 stores, closing all 75 stores including Old Navy, all 53 stores, etc. The Park Avenue store near Shibuya, which once existed as the flagship store of GAP, will also be closed in May 7th, with a sales loss of about 28 billion yen.

     

    Will it continue to close?

    Old Navy closure -- internal analysis

    Old Navy entered the Japanese market in 2012 and made UNIQLO as a competing product.

    First, the price strategy is 2 times the price of the United States. Japanese consumers see that its price performance is not as good as that of UNIQLO, and they want to wait for a discount.

    Second, style color, mainly based on the American body and color preference design, shoulders wider and deeper color, does not meet the Japanese consumer's shape and color preferences, even if the discount is large, it can not be sold.

    Third, turnover update, due to the limited number of shops, but also low-end brands, turnover difficulties, new products should not keep up with the season, and UNIQLO shop in New York for more than 10 years, the reason for not making profits is exactly the same.

    Fourth, the impact of online shopping, the United States fashion apparel online shopping rate reached 30%, Japan has also reached 19%, experts analysis, online shopping rate reached 25% may be the critical line, more than this figure, the entity store will usher in the closing peak.

     

    Evaluation of new stores in Japan - external analysis

    There are agencies to track and evaluate the newly opened commercial facilities and stores in Japan since 2012. The indicators are divided into 9 stalls (AA, A+, A, A-, B+, B, B-, C, D).

    At the beginning of 2016, the evaluation of the 39 commercial facilities in the past 3 years was basically the same. The success rate of new shops was 20.5%, and the failure rate was 51.3%.

    In early 2017, the success rate of new shops was 2.9% and the failure rate was 79.4% for the 34 commercial facilities that were opened in the past 3 years.

    Of the 448 shops involved, more than 20% were ready to withdraw.

    As a whole, entertainment and catering can achieve budget targets, and most of the shops of fashion clothes can not be budgeted.

    In the international fashion apparel brand, the efficiency of UNIQLO and its Deputy brand GU in the Japanese market is between 24~26 million yen, the best ZARA of foreign brands is around 170 thousand yen, GAP and H&M are around 130 thousand yen, and some shopping center shops only have about 100 thousand yen.

    The days are hard.

    According to the usual habit of commercial opening, 30% failure is suicide, and 80% failure is collective suicide.

    Knowing risks and opening stores, we are fighting for risk.

      

    Enlightenment for us

    First, the essence of the entity store is product innovation. If the product innovation fails to catch up, it will lose the fundamental reason for patronizing customers.

    In 2016, the Chinese bought 1 trillion and 30 billion yen of Japanese goods online, and actually went to Japan to purchase 1 trillion and 470 billion yen, which was equivalent to buying the performance of half a department store in Japan, while the American online purchase of Japanese goods was only 615 billion 600 million yen. Obviously, our competitiveness difference is not in the channels, but in the products themselves.

    Second, from the evaluation of GAP stores in Japan to the opening of new stores, with the continuous growth of the proportion of online shopping, it is not enough for the entity store to have product innovation. We should analyze customer demand according to the regional market culture and custom, stratification and classification, and configure different personalized products under the line, including physical goods and cultural or spiritual products.

    Third, the large number of stores in the United States are closed, and online stores, fast fashion and brand discount stores are doing well. This shows that the customer value of the real value stores has collapsed.

    The customer value of China's so-called "value store" is even more disgraceful.

    We must see clearly the value of brand discount stores, seize new customers' value points, open up new product channels, and create low quality, cost-effective outlets.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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