In The Past, The US Tide Card Is Going To Turn Off 230 Stores Next Year. Why Is It Not Popular In China?

Founded in the late 60s of last century, the American clothing giant GAP has gone through 50 years of development. It used to be the leader of fast fashion in the world. In recent years, it has been overtaken by rising stars such as UNIQLO, H&M and ZARA. According to the latest news in November 2019, CEO, who had been in the office for four years, suddenly left. You know, Art Peck is one of the highest paid executives in the US retail industry. He paid $20 million 700 thousand last year (about 140 million yuan). The sales volume of this veteran clothing enterprise continued to decline, causing concern and discussion from outside.

This year, the group's brand year-on-year sales have declined. The US media analyzed and pointed out that the old design of GAP, the misjudgement of the trend trend, the dependence on discount and the lack of timely reduction of the scale of physical stores are the reasons leading to poor performance.

Let me give you a brief introduction to the development process of this clothing enterprise. GAP (Gapu) is one of the largest clothing enterprises in the United States. Its products include men's wear, women's wear, children's wear, maternity dress, fashion accessories and so on. Similar to McDonald's, it has achieved the biggest expansion in the shortest time. Once a popular fashion brand, many Hollywood stars have passed through. By the end of last year, there were more than 3600 stores in the world, with annual sales volume of US $16 billion 600 million (about RMB 116 billion).

Fifty years ago, the first GAP shop was founded in San Francisco, USA. The original intention of the founder is very simple, hoping to make the customers find more comfortable jeans in a comfortable and simple shopping environment. Brands at reasonable prices plus samples are more suitable for the public. It seems simple but has popular details. Soon loved by young people in the United States, there are always crowds in stores every holiday season.

In 80s, Gap brand led leisure and relaxed style trend, invited many influential Hollywood stars and celebrities to try and pretend to be spokesmen. With the popularity of fame, children's clothes and children's parents who later set up GAPKid brand were also favored by children and parents. In 90s, they extended the BabyGap brand and opened up a world for baby clothes market.

Although the Gap brand has been established for 50 years, it has only been a few years since it came to China. Compared with other fast fashion brands, it entered the Chinese market at the latest and developed slowly. In the first tier cities in China, its competitors Zara, H&M and UNIQLO have already made a lot of money, and their popularity has been opened. With its simple and versatile design and high quality fabric and version, it is a double-edged sword, which can gain the favor of loyal consumers, but it will also lose the new generation of consumers.

In recent years, the casual and rough style of American casual wear has been replaced by the European brand ZARA and H&M, which are updated quickly, have fashion attributes and have a more aesthetic sense. In addition, although UNIQLO is also a simple basic item, it is very meticulous, and its tailoring is also more suitable for Asian people.

Of course, GAP can't sit still. It is trying to save itself by all means. It is expected that by 2020, the group will close 230 stores. In addition, through hatching and collecting new brands, a diversified brand development strategy is formed. At the same time, we intend to set up new design centers, and even provide monthly rental services, free distribution, replacement and laundry services to stimulate growth. Help brands create better emotional ties with young consumers.