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GAP&Nbsp, The US Apparel Giant, Lost Its Way In China.

2011/4/13 11:36:00 46

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American Clothing Giant GAP

It is understood that the United States

Costume magnate

GAP once was because

Decline in performance

Having a headache, when it racked its brains to improve its performance,

Competitor

These emerging markets in Asia have been occupied.

At the end of 2010, China's market share of Zara, H&M and UNIQLO grew rapidly. The first flagship store of GAP also opened in the mainland of China.

GAP

Is it time to enter China? "

An industry insider pointed out that although GAP China President Yang Deming said that this node is entering China, it is the right time, but GAP can hardly ignore a problem.

Clothing market

Later, GAP had to pay higher store opening costs than competitors.

The insiders also pointed out that GAP has indeed lost the edge compared with other competitors.

Faced with the same strength and more innovative opponents, GAP's road to Chinese development is stagnating.

In 2010, Zara's group Inditex opened 75 new stores in China, and pointed out in its earnings report that there will be 120 new stores in China in 2011.

According to H&M's latest earnings report, 250 new stores will be opened this year, mainly in China, Britain and the United States.

As of August 2010, UNIQLO already had 76 stores in China and plans to increase the number of stores in China to 1000 by 2020.

UNIQLO has begun to try online sales in China, and its performance is good.

To keep pace with these international competitors, GAP has to expand rapidly, and reporters from GAP's earnings report found that since 2005, the number of GAP stores has been leveling off, and for its newly acquired brand Athleta, only one store has increased in the past year.

The annual report shows that GAP currently has 3068 stores, and opened 27 stores in the fourth quarter of 2010, but also closed 41 stores.

Asia's gap stores were 135 in January 29, 2011, and 120 in January 30, 2010. Last year to this year, GAP closed 41 stores in the United States.

Reporters learned from GAP China that the brand entering China is only GAP of the five brands of GAP, while the performance of GAP brand is not satisfactory.

In Gap2010, the turnover increased by 2% compared with 2009. However, compared with the 5 billion 958 million sales in 2008, the sales volume of 5 billion 735 million this year still dropped by about 4%.

Not only that, GAP began to decline in 2006, but sales did not exceed 2005 in 2010.

In 2005, GAP group's net sales amounted to $16 billion 19 million, compared to $14 billion 664 million in 2010.