Why is Gap Inc. facing such a crisis as the deterioration of the entire line?

In the face of deterioration, such a crisis may be the opinion of the leader, or it may not meet the needs of consumers, or it may be a problem with funding.

Gap will face deterioration across the board, because they have not changed according to the changes in the Chinese market and cannot keep up with the current consumer psychology.

Because the current market competition is really fierce, anyone may fall tomorrow. It's all unknown.

Gap Inc. will face a deteriorating crisis across the board, because they do not have a good understanding of the Chinese market situation and the psychology of Chinese consumers.

Under pressure from all sides, there are many brands of selectivity in front of consumers, which has also laid the loneliness of some brands.

I think it's inevitable that they will face a crisis like a deterioration across the board, because the current market is not the same as before.

The crisis will come back sooner or later, the Chinese market has changed a few times, and the company should also keep up with the times and trends.

I think it's inevitable that GAP will face a crisis like deterioration across the board, and now the Chinese market has changed.

The market is volatile and diverse, and the slightest carelessness is likely to have an incalculable negative impact on the enterprise.

In today's modern development, the competitiveness of any product is also very strong, and even such a strong brand as GAP Group will face a crisis. This is normal, because there are also well-known brands around the world that have also encountered a downward trend, and it is not easy to turn this bad luck around.

As recently as November 3rd, Banana Republic, which had ended its loss-making stores, hoped that by changing its products, it would increase sales. Comparable sales increased 2% year-over-year in the third quarter, beating market expectations and marking the fourth consecutive quarter of growth.

On the other hand, the number of GAP stores in the United States decreased by more than 800 in the third quarter, which is really a large number. This is a deterioration over the past four quarters compared to the net closure of 37 stores last year, with comparable sales** expanding to 7% in the third quarter and the market** well above 4%. During the period, the brand vigorously cleaned up some messy inventory and styles, which put pressure on profitability and sales.

It is worth noting that the GAP brand is not only not developing well in the US market, but also failing in the Chinese market. According to the relevant financial report, in fiscal year 2017, GAP's sales in Asia have also declined to 100 million US dollars year-on-year, and sales in the Asian market from the first quarter to the fourth quarter have decreased by -13% year-on-year.

There are many reasons why GAP is not good in China, GAP brand is really a little late when it enters the Chinese market, China's fast fashion industry has formed a multi-party pattern, some local brands and international well-known brands have obtained more fixed market benefits in the market, GAP brand is a "latecomer" so the cost is relatively high.

American apparel brand GAP is rumored to be closing offline stores in a number of supermarkets in China, including Beijing, Shanghai, Guangzhou, Shenzhen, Changsha and other places. Among them, many netizens said that the local gap withdrawal information is very cheap. It is true that the GAP stores in Shanghai have begun the clearance discount mode, and the store may be closed in the future, so it is very necessary to carry out clearance discount at this time.

Now GAP China has responded to the store closure, mainly because the apparel industry is changing rapidly, which is a very common practice in the industry. <>

When GAP entered the Chinese market, it did not change its style and business model according to the characteristics of Chinese consumers. His size is often on the large side, and its xxs is already the domestic S size, and secondly, it's **high when the new product is just **, but because it is often discounted and discounted more frequently, it seriously affects the value judgment of consumers on the product. And as a fast fashion store, his style is still stagnant.

His fast fashion brand ZARA, which entered the Chinese market at the same time, is really dull compared to HM. <>

GAP became popular with the white shirt and jeans in 1960, and in the following decades, they were still well-known items, but after entering the millennium, JP's advantage gradually disappeared, due to the long-term lack of innovation, even if the top management could not carry out a thorough reform, he could only fall into trouble, he did not try to change the style, but the company and the designer's philosophy is different, resulting in designers everywhere limited, so did not grasp such a large market in China. It is due to the outbreak of the epidemic, which is a huge test for all offline stores, and many European and American markets have to close stores. <>

When consumers' enthusiasm for GAP rose, its official did not respond to consumers, so the market began to sink, but the main reason is that the expansion speed and the total number of stores are not as good as competitors after all, and the popularity of social ** is not high. His unknown nationality eventually led to the forced closure of the shop.

First of all, the current economic weakness of the rent pressure of physical merchants is greater, and secondly, GAP does not have a bright advantage in FMCG brands, the style and ** are average, plus the marketing strategy is not very good, brand awareness has been declining, and closing stores is expected. Personal knowledge of GAP is limited to American FMCG brands, one of the brands that programmers love, but has since been replaced by Japanese brands such as Uniqlo.

The main reason behind it is that today's clothing industry is undergoing rapid changes, in order to adjust the current development to adapt to the current social development of a decision; The understanding of this enterprise is that this is a foreign fast-selling brand, mainly producing all kinds of clothing and accessories, and the modification of the figure is also very strong, which was particularly popular in that year.

GAP is a clothing brand from the United States, which once had a place in China, but now it is almost difficult to survive in China, and the reason why GAP has frequently closed stores is mainly due to the following three reasons:1. Fierce brand competition; 2. GAP itself is not progressive; 3. The epidemic is serious

First of all, GAP is a clothing brand from the United States, but the United States has always been not very good at clothing, no matter what the price of the brand, in fact, most of the high market share is from Europe, not from the United States. From the perspective of GAP's positioning, GAP is similar to Uniqlo, H&M and other brands, all of which belong to fast fashion, but obviously GAP's brand competitiveness is relatively small.

Secondly, in fact, clothing brands are the same as milk tea brands, they are all brands with very serious involution, basically they will be abandoned by the market if they do not progress, and gap is the most typical example of being abandoned by the market, gap has been developing in China for many years, and has not come up with a better design, or there is something very comfortable material, gap does not even have a trump card product, so this brand is actually difficult for consumers to remember, so gap is going downhill, A large part of this is also due to the fact that GAP itself is not progressive.

Finally, I have to say that the epidemic in my country has also hit physical stores very hard, and the epidemic in the first half of this year in my country is also relatively serious, and shopping malls in many places are not open, which has also led to the closure of many physical stores.

Now the physical stores have been greatly impacted, and secondly, the epidemic has affected everyone and they don't like to go out. Plus, there are a lot of similar brands like Gap. I learned that GAP is a foreign FMCG brand that mainly produces all kinds of clothing and accessories.

Many people can often see the GAP brand when they go out shopping, and they can often see these brands in many big cities or 12th-tier cities. Fast fashion brands like this are all from some foreign fashion brands, and in the early days, they also had a very high status in China's large fashion circle, and they have always been loved by many consumers in the Chinese market.

In the early days, fast fashion brands were all over China, mainly because in the early days, some Chinese clothing brands were relatively monotonous, and in addition, they may be a little single in style, so at the beginning, many foreign brands entered China, and there were many consumers who preferred these foreign brands. Not only can you try out what foreign brands are like in terms of style, but you can also try to experience the clothing styles of different countries by yourself. But with the passage of time, it can also be seen that these foreign brands are also facing great pressure in the Chinese market.

The rise of local clothing brandsMainly because some original brands or some clothing brands in China, they are constantly creating clothing that is more suitable for the aesthetics of Chinese and the figure of Chinese in the process of upgrading. In this way, some consumers will also have more choices in the process of going out shopping. And it can be seen that with the development of the Internet economy, many netizens can shop online without going to some offline physical stores.

A change like this has also caused a lot of offline clothing stores to suffer a great economic setback.

The main reason is that everyone has more choices, and now all kinds of clothing brands are very competitive in the market, they not only fight the style but also fight the cost performance. Therefore, the GAP brand can also feel its pressure becoming more and more in China, and even many foreign brands have withdrawn from the Chinese market one after another. A news like this also makes many consumers who used to like this brand feel very pity, but it can be seen that this market is a market of survival of the fittest, if you can't keep up with the aesthetic vision of netizens or can't meet everyone's preferences, it will be eliminated.

It will not change the existing market structure. GAP itself is not very competitive in China, and its market share is almost negligible, so even if it will be the first in business, Yuanwang will not be able to make any waves.

I don't think anything has changed, it has always been the king of cost performance, and it is very likely that it will make a comeback.

Personally, I think this is very beneficial to the Chinese market, which will drive the relevant domestic enterprises to settle in the relevant obligations and further activate our market vitality.

Because his sales in China are not good and not very popular with Chinese, he will choose ** China business.

This is because the brand's business in China is not particularly good, and its sales are gradually declining every year.

That's because it doesn't sell well in China, the sales are very poor, and there is no market anymore, so I want to go to **, after all, GAP also wants to continue to develop in other countries.

According to people familiar with the matter, Gap IncPotential options are being considered, including a China business, to adjust operations in China. Gap is working with a consultant to explore options and has approached potential buyers to assess interest in the acquisition.

Negotiations are at an early stage and the company may decide to keep the business. GAP representatives declined to comment.

Industry insiders believe that the fast fashion industry may soon enter the winter period, and consumers' gradual critical eyes make these relatively cheap goods under the mode of rapid production and design gradually lose their luster and have distinct personality labels"Post-90s"、"Post-00s"Among the crowd, designer brands may become the main consumer force.

Because their company's earnings in China are not good, they think that there is no profit to be made here, so they plan to abandon the Chinese business.

GAP apologizes for "deleting" China's map on T-shirts China: We will continue to listen to his words and watch his deeds.

American apparel retailer Gap apologized on its official Weibo account on the evening of May 14 for a T-shirt, saying that "Gap Group respects China's sovereignty and territorial integrity." We have been informed of an incorrect design of a map of China on a Cap T-shirt sold in some overseas markets. We are extremely sorry for this inadvertent mistake."

On May 15, a netizen posted a T-shirt on Chinese social media, saying that the map of China on the T-shirt, including southern Tibet, Taiwan and the South China Sea, was missing. He said the T-shirt's ** was filmed in a directly managed store in Canada.

Subsequently, Gap issued an apology statement and emphasized that "the product has been withdrawn from the Chinese market and completely destroyed".

At noon on the 14th, I called Gap's China headquarters, and the customer service said that this clothing is not currently on sale in China. In response to Gap's statement, there was a ** report that "it should not only be the product in the Chinese market that should be destroyed".

Other U.S. companies have apologized for similar incidents.

At a regular press conference held on May 15, spokesman Lu Kang said in response to relevant questions: "I note that GAP Inc. has issued a statement apologizing for this, saying that the group respects China's sovereignty and territorial integrity, is conducting internal inspections, and will correct relevant mistakes as soon as possible." The statement also said that the group strictly abides by Chinese laws and regulations, and will strictly review it in the future to prevent similar mistakes from happening again.

Lu Kang said: "We have taken note of this statement, and we will continue to listen to his words and watch his deeds. ”

Facts**: On May 15, spokesman Lu Kang held a regular press conference.

The content comes from the reference message.