When Gap began an online campaign before it launched its Old Navy label in China, the iconic US clothing retailer asked its potential Chinese customers: have you heard of Old Navy?
Only a few had.
Brand awareness is one of the uphill battles Gap faces in China as the firm looks to increase its stake in the world’s second-largest clothing market, where it lags rivals H&M, Uniqlo and Zara.
Gap, which launched its first Old Navy store in Shanghai on Saturday, plans to open five stores of the value-end chain this year as well as adding 30 Gap stores to its existing 81, Gap’s Greater China president, Jeff Kirwan, said.
“Outside North America, this is the largest opportunity for us, acknowledged by all the senior leadership in the company. This is the No 1 growth vehicle for the company,” Kirwan said.
A bastion of the clothing sector in the United States, where it has about 4 per cent of the apparel market, Gap entered China behind its rivals, setting up its first own-brand shop in 2010.