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US Apparel Retailer GAP Enters E-Commerce In China (1)

2010/7/10 9:57:00 50

At the end of June, GAP, the largest clothing retailer in the United States, announced its entry.

Chinese Market

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At the end of 2010, 4 flagship stores will be opened in Beijing and Shanghai. Each store will have an area of more than 1000 square meters.

The entry of GAP is bound to set off a bigger wave in the competitive clothing market. The occupied gold stores are on the left, and the brands such as ZARA, H&M, C&A and UNIQLO have already been on the right. GAP landing in China will be full of ups and downs.

The word "COMINGSOON" in Beijing's Mall indicates that GAP is about to debut.

"Every company has its own business strategy. Every journalist who interviews us will ask whether it is too late to enter China now. We feel that this is the right time."

GAP China President Yang Deming said.

GAP

Previously, it was mainly concentrated in the US market.

However, over the past 25 years, GAP has purchased over 10 billion US dollars in China and is currently working with more than 400 factories in China.

This entry into China, like ZARA, H&M and UNIQLO, is based on China's headquarters in Shanghai.

The industry generally believes that the weakness of GAP is "slow".

Fast fashion

"Big business".

Bin Bao, a researcher at Zhongshan University's Public Communication Research Institute, and BENBO (Lin Jingxin), a strategic marketing consultant, said that the pace of development in the past has fallen on competitors, and has not yet completed preparations for the layout of the Chinese market.

At the same time, there is some hesitation about the fierce competition in Chinese clothing (5.82, -0.10, -1.69%), and the strategic development model with competitive advantages has not been worked out. These two points may be the main reason why GAP is late.

GAP's business experience

As an old clothing enterprise, regardless of the external criticism, GAP has its own business experience.

"First of all, integrate online and offline to maximize manufacturing influence."

Lin Jing Xin said, "at the beginning of the GAP company, it made full use of its vast network of physical stores to promote its business, including printing its own shopping website in shops and advertising posters, so that the cashier staff orally recommended the customers who were paying the bill, and even provided some computers linked to gap.com in some key shops to let customers try."

GAP, on the one hand, continues to maintain the leading position in online store sales. On the other hand, it will also expand the direct e-business channel as the key strategy of the company, and has achieved good results.

This is also the way GAP wants to copy to the Chinese market.

The second is digital technology application to improve marketing and management efficiency.

GAP company uses RFID tracking system to implement effective management of sales terminals.

Every GAP clothing label is tracked by the system, whether it is placed in the packing box of the warehouse or on the shelves of the store.

As long as customers have needs, salesmen can immediately tell consumers how many colors they choose to choose from through portable code readers, and find the target products for customers at the first time, avoiding the time spent in traditional manual search, thus causing customers to lose.

According to statistics from relevant departments, GAP's sales increased by 20% after RFID's effective tracking and management of clothing.

"From the early 1990s, the clothing retailing industry began to become popular." a brand opened a lot of shops in one place, and shops and shops were very close. There might be four or five houses close to a commercial street.

In this way, it will bring great pressure to our competitors -- this is also one of GAP's strategies.

Lin Jing Xin said, "GAP is rich in capital and has the ability to open more and more shops."