Today, The Market Value Has Shrunk By 33 Billion 700 Million US Dollars, And GAP Is In A Desperate Position In China.

Once a sales leader in the fashion industry, the market value has shrunk by 33 billion 700 million US dollars, and the intention is to turn off 230 stores. CEO has been suddenly dismissed. How does the fast fashion brand GAP of the United States kill itself to this stage?
　　 Why is fashion GAP overtaken in China?
Founded in 1969, GAP is one of the largest clothing companies in the United States. In the past 50 years, it has left many legends in the clothing industry, and is very popular among celebrities. Shharon Stone wore it to the Oscar awards evening.
From the first small shop, it has developed into a large clothing group with three brands. Its products cover men's wear, women's wear, children's wear, maternity dress, fashion accessories and so on. GAP has more than 4200 chain stores worldwide, 165 thousand people work for it, and its annual revenue is more than $13 billion. In 2010, GAP landed in China for the first time, but it did not go smoothly in the subsequent development.
The exclusive view of guard blue high-end headhunting is that, first of all, compared with other brands such as UNIQLO, Zara, GAP has entered the Chinese market late, and the marketing strategy is also somewhat slow to expand. The market of domestic first tier cities has long been carved up, so it is difficult for GAP to win the big cake again. Secondly, in the design of clothing, the American style brings a certain amount of loyal consumers to GAP, and at the same time, it does not fit in with the tailoring of the Asian body type, and also blocks some consumers outside the door. Some netizens have so much comment on GAP that it is more expensive than UNIQLO and ZARA.
In addition, GAP has made repeated mistakes in quality problems. According to the information of heaven eye, there were 7 administrative penalties in the 2015 to 2018 years of the business in Shanghai (4) because of quality problems, 1 of which involved false propaganda. In addition to nearly two days of printing chemicals exceeding the standard, 2749 infants and young T-shirts were recalled. In 2018 alone, GAP had failed two times of infant clothing testing, and the number of clothing involved was more than 10000.
Coupled with GAP's printing of a Chinese map after the deletion of a T-shirt, the brand image suddenly plummeted.
　　 The annual salary of 140 million of CEO is also hard to save GAP, the market value shrank by 33 billion 700 million US dollars.
Earlier this month, GAP's chief executive, Art Park, was suddenly dismissed from office, causing a great shock in the clothing industry. Insiders have revealed to the guard blue high-end headhunter that ArtPeck has worked in Gap group for nearly 15 years and has been CEO since 2015. He is one of the highest paid executives in the US retail industry. Last year, the salary was as high as 20 million 700 thousand US dollars (about 140 million yuan).
GAP had a market capitalization of about $40 billion at its peak in 2000, but as of November 20th, it had only 6 billion 306 million dollars in market value and 33 billion 700 million US dollars in diving. Its sales also fell for another 7 quarters. In the second quarter of this year, GAP's Asian market sales fell 12.2% to 200 million dollars.
Poor performance led to GAP's decision to close shop and save costs. Teri List-Stoll, chief financial officer of GAP group, said the group will close about 230 stores by 2020 and is expected to save about 250 million to 300 million dollars. But the GAP group will continue to expand Asian markets such as China and Japan.
Seniority and salary are not the only two criteria for measuring the strength of high-end talents, and creativity, adaptability and execution should also be considered. In the face of changes in the global clothing market, the development of China's market localization, GAP executives, apart from blindly opening new stores and opening large discount stores, seem to have no new tricks. In April this year, 11 new stores were opened in Sanya, Haikou and Kunming. In August 20th, GAP opened the first discount store in Hongkong. Up to now, the GAP group has nearly 200 stores in Greater China.
In addition to quality problems, the biggest challenge facing GAP is the reduction of offline traffic. Under the premise that products and marketing strategies are not innovated, the exclusive view of guard blue high-end headhunting is that at this time, blind shop expansion, in addition to a substantial increase in costs, can bring limited profits. Therefore, as a historical clothing brand, GAP lacks of experienced veterans, but is more innovative and better understanding of the market.
Many consumers also said that GAP had gone through the pro citizen route, and the quality of the product had not been broken. The price has gone up a lot, which is hard to accept. So the problem is, there are rumors that GAP's next strategy is to set up multiple discount stores in second tier cities in China. Do you think Chinese consumers will buy it?