Finding a Gap in the market; the challenges facing an iconic clothing brand
Despite impressive expansion in China, the famous American clothing retailer is battling to overturn falling sales amid stiff competition
When Gap made its debut in China in 2010 with a spectacular 11,400-square-foot flagship store in Shanghai, it brought with it a unique ambition to provide Chinese consumers with “cool, modern and affordable American designs”.
At the time, the enormous billboard featuring a navy blue box logo at the centre of a gigantic polka dot took up almost the entire corner of the block and made quite a splash in Huaihai Middle Road, the city’s equivalent of New York’s Fifth Avenue.
The San Francisco-based apparel powerhouse, celebrated at home for its khaki combats, chinos and colourful T-shirts, broke the mould with an audacious expansion. Within four years, it had reached the milestone of 100 stores across 25 cities in China. The total number of outlets now stands at 160.
Gap is famous for its wardrobe basics, but in China there are many brands offering similar products at lower prices
But recently it has been far from plain sailing for the 48-year-old brand as it becomes increasingly reliant on discounts to attract customers.
Gap’s 10,000 sq ft store in Guangzhou’s high-end Parc Central mall, also comprising its sister brand Old Navy, ceased business in December, just nine months after opening.
Just a few yards away from the vacant Gap outlet, Zara’s 23,000 sq ft store appears to be thriving. Last weekend, the shop was crammed with bargain hunters rummaging around for discounted clothes and long queues formed in front of the cashiers.
Further down the corridor, crowds of youngsters flocked to Abercrombie & Fitch’s surfer-themed Hollister.