What’s wrong with GAP in China

04 Mar 2020

Lately, it was reported that the American clothing brand, Old Navy announced to sail out of China in March, 2020. Before then, jettisons entire stock for 60 percent off. You never know what will happen next. What’s wrong with GAP in China? In fact, different people may have different ideas about this incident. Clothing market is challenging and you should always develop new ideas including the product up-gradation, the use of clothing display racks and the after-sales service.

What’s wrong with GAP in China

Let’s know more about the GAP firstly. As we know, Old Navy pushed into Chinese market since 2014 and it was one of the subsidiary corporations of GAP. Now it is said that GAP canceled the plan of becoming listed company for many reasons including the costs and marketing complexity. Later, it will concentrate on American market. When it comes to the clothing company in America, you can not ignore GAP, which is one of the biggest clothing companies in America. The clothes are warmly welcomed by American for it is featured for the casual clothes which have the nice price and simple type. During the vocation or the festival, people are crowed with the store. You may often get the discount in the store so it is also the reason why many consumers choose to pay for clothes of this brand. Many people said that the GAP clothing store can satisfy what you need and there are abundant clothes even for the whole family. No matter you are the young, the old or the little baby, there are always corresponding clothes for each one. Thus, many consumers are satisfied with its great convenience. Old Navy, the subsidiary corporation of GAP, pushed into Chinese market in Shanghai since 2014. For the many complex reasons, it was announced that it will focus on the North America market and try to maximize the benefits as much as possible.

When it comes to the reasons why Old Navy will sail out of China, different people may have different ideas. According to the official response, it mainly for the reason that the sales volume is decreasing in China in recent years. Generally speaking, in spite of Old Navy, other clothing brands also had sailed out of Chinese market this year. Industry insiders stated that nowadays many consumers have the more advanced demand for the quality of the clothes as people’s living standard is getting better and better. And the strategy of unchanging types or the low price are not available for consumers. What’s more, Art Peck, who was ever the CEO of GAP, announced to leave in the later 2019. The incident of Art Peck’s dismission is also one of the reasons that the Old Navy will sail out of China. Other people also said that it may have connection with the novel coronavirus disease which was called COVID-19 broken out in China. Many retailing stores are influenced under this epidemic situation. Among which, the main reason is likely to be the internal development of GAP. In fact, after the left of Old Navy, there are still more than 200 stores of GAP in China and they are said to have great challenges in the future. To turn the tables, GAP makes many changes in recent years, including improving the rapid of supply chain, optimizing the shopping experience, innovating the ways of selling. But the measure of product innovation is still sluggish which cannot radically get rid of the trouble. In spite of this, people’s living custom is also the important factor. Nowadays consumers are not taking the young, casual or comfortable for standard any more. They are more likely to tend to the fashionable and creative new products.

What’s wrong with GAP in China

So, what can we learn from this incident? Especially for the clothing market, it is changeable and unpredicted. But there is one thing that you should always remember is that you should try to have the creative minds keeping up with the step of the society. Never fall behind the society. The clothing store should pay more attention to the product innovation. Consumers may get tired of the same product in the continual years. Except for the product innovation, the design of the store is also the key factor because it can help you to show the new products to consumers. People are easier to be attracted by the surprising things rather than the simple things. For the clothing store, clothing display racks are necessary. Try to purchase the proper one for the style of the store. Taking the brand of Youngor and the Goldlion for example, they are both the famous brand for selling the men’s clothes. Consumers are satisfied with their wonderful products and perfect design of the store. With the help of lighting and other fixtures in the store, it may become more attractive by consumers. Actually, we are the factory that we mainly produce these clothing display racks for these two brands. They are the texture of stainless-steel with the color of rose gold. Certainly, we can design what you need and you can just contact us.

Talking about the oversea clothing market, it may meanwhile have opportunities and challenges. Due to the different problems, you should tackle with them in the proper way. It was reported that the reason why GAP was in trouble was that the misunderstanding of the trend of fashion, old designed products, dependence on discount. Dana Telsey, who is the chairman of Telsey Advisory Group, expressed that the GAP should try to produce the core products which are not oriented by the discount and find the newer and younger group of consumers.

What’s wrong with GAP in China

In a word, we should all learn a lesson from this incident, not just be a looker. To be brief, we have to take actions and try to change something. If you are a merchant of a clothing store, never remember to renew the products at regular times. Also, make full use of the clothing display racks or the clothing display tables to attract more consumers.

Keywords: clothing display racks

Originally published 04 Mar 2020, updated 04 Mar 2020.

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