Gap Is Fully Supported By Cheap Brand Old Navy

Art Peck, CEO of Gap Group, said that restructuring the Gap brand is still the most important goal of the Group. In his opinion, the current problem of Gap is mainly in the blouse, which is unsalable. The main problem is that the style is ugly and not fit enough. ArtPeck said that Gap's performance was unsatisfactory to everyone, and the group was ready to fine tune the women's clothing in the flagship store of the brand.

Although Gap, the brand with the same name, has many problems, Old Navy, its low-cost brand, has performed well. Benefited from the new Old in Greater China Navy store, the brand's revenue in the Asia Pacific region in the fourth quarter of 2014 reached $48 million, up 77.8% from $27 million in the same period last year, and the annual revenue was $149 million, up 93.5% from $77 million in the same period last year.

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

It is understood that, unlike Gap, the Asia Pacific market dominated by China has given priority to Europe as the Old Key markets developed by Navy (in 2013, the brand fully developed the Japanese market, with 18 stores in Asia all located in Japan).

Compared with Gap, which entered China in 2010, its sister brand Old Navy came later. Until March 1 last year, Old Navy's first flagship store in China has just officially opened. On the opening day, Jeff Kirwan, President of Greater China of the parent company, came to deliver a speech in the rain, which shows the degree of attention he paid.

Although, Old Navy Our shop assistants tried their best to explain their relationship with Gap to customers who "join in the fun" and "see the fresh". But some people who have been to the United States don't seem to buy it. "I see Gap everywhere in the United States, but I seldom see this brand."

This sentence really hit the nail on the head. It seems that Old Navy urgently needs to improve its popularity (perhaps many consumers do not know Old yet Navy is a brand belonging to Gap Group), but it doesn't matter at present, because of the low price and frequent discounts, Old Navy seems to have higher competitiveness than Gap in China.

As a member of Gap, Jane has been receiving Old since last year Navy's promotional message. She paid a little attention this year. "In February this year, she will receive a discount message every week." Jane Fang said, "I bought the new model last week, and this week it will be 60% off."

Accenture Consulting pointed out in a previously released Survey Report on Chinese Consumers that the brand loyalty of Chinese consumers is weak, and only half of the respondents will be loyal to special brands, while the other half will often wander among various brands.

stay Clothes & Accessories Cheng Weixiong, an expert and general manager of Shanghai Liangqi Brand Management Co., Ltd., believes that too frequent discounts are still a double-edged sword, let alone a new brand. He believes that people will buy this brand because of the discount, but the long-term low price cannot maintain the operating cost. Once there is no discount, consumers will lose.

Many insiders believe that in China, where the competition is fierce, as a latecomer ZARA Under the background of the same type of consumer brands competing on the same platform, the market leaves huge pressure on Gap. In addition, Gap, the latest entrant to China, obviously has not yet had enough understanding of the Chinese market.

A person who once worked at Gap told reporters that the high price, slow update speed and not fashionable style are the weakness of the brand. "Many customers I have contacted have told me that the clothes are not beautiful."

According to the data provided to reporters by RET Ruiyide China Commercial Real Estate Research Center, there were 97 Gap stores in the third quarter of last year, and 10 new ones were opened in the fourth quarter. "In contrast, Uniqlo opened 32 new stores in the fourth quarter of 2014, while H&M opened 22 new stores and Muji opened 14 new stores. ”Shi Jin, the chief analyst of the company, said that Gap's expansion rate was normal.

It is reported that Gap Group has three brands - Gap, Banana Republic and Old Navy。 As of January 31, 2015, Gap Group had 3709 stores in the world, 3280 of which were directly operated. Gap Group said that it would continue to add 40 stores in Greater China in the fiscal year 2015.