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GAP: Not All Plans Can Be Carried Out.

2016/2/17 9:51:00 61

GAPFashion BrandBrand Strategy

GAP group's current and future business trends have worried the industry that GAP, the fast fashion brand, is at the most critical juncture.

GAP, Banana Republic, Old Navy, and its sports brand Athleta, which were once the three leading brands in the past, were also declining in the past year.

So what's wrong with the world's biggest clothing retailer?

GAP acquired the sports brand Athleta as its focus on the market segments, aiming at the light sports and fashion field. Its products are priced moderately and quality is reliable, so that they can get a share in the competition with other fast fashion, such as H&M.

However, not all plans have worked.

Let's take a look at the latest four quarters of the brand.

Namesake brand

GAP

Sales have fallen for several consecutive quarters, down 3% this time, while another high-end Banana Republic sales plunged 14%.

The industry was surprised that the sales of Old Navy, which has been showing its bright eye even as the engine of the rally group, also fell 8%, compared with a 11% increase in the same period last year.

Need to know

Old Navy

Brand has always been regarded as a very valuable sector by Gap group.

It was with Old Navy that the overall sales growth of the group in 2014 was basically flat.

But the sharp fall in performance this time proves that Old Navy is under attack.

Market analysts believe that compared with competitors ZARA,

H&M

The fast fashion brand GAP in the US is accelerating to lag behind, regardless of brand influence or performance growth.

There are consumer surveys show that the group's three main brands GAP, Banana Republic, Old Navy almost no difference exists, they overlap together, consumers can find khaki pants in these 3 brand stores, the only difference is the price.

According to earlier reports, Instagram and other social media platforms have also put a damper on GAP's experience, and many commented that GAP brand is out of date.

As a former sales leader of the fashion industry, GAP is rated by Forbes as one of the ten fashion brands that may disappear in the next ten years. The factor behind it may be that the GAP brand blindly cater to all consumers.

According to its performance in 2014, the sales volume of Spanish INDITEX group, as ZARA's parent company, was $20 billion 400 million, followed by Sweden's H&M of $18 billion, and GAP from the US ranked third at nearly $16 billion 500 million.


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