Where Is The Problem Of GAP Three Times A Year?

It is reported that the US fast fashion brand GAP has announced the appointment of AlegraO 'Hare as senior vice president and chief marketing officer to help brands reverse their declining performance.

It is interesting that this is the third time that GAP has replaced senior management in one year since February last year.

What is the secret behind frequent change executives?

It is reported that the appointment of Alegra O 'Hare served as Adidas Originals's vice president of global communication.

Prior to June 2018, GAP group announced the appointment of NeilFiske as the president and chief executive officer of its GAP brand. The former president and CEO JeffKirwan quit because they failed to lead the brand growth in February 2018.

An industry expert told the China Commercial Daily reporter that the frequent change of GAP executives was mainly due to declining performance, but the main reason for the decline in performance was not that of executives.

From the development of GAP in the Chinese market, the decline of performance seems to be an inevitable event.

Reporters randomly interviewed many consumers who shoped at GAP stores. Most consumers said they were not loyal fans of GAP. They only chose basic styles of clothing when shopping, and compared with other fast fashion brands when buying, such as price and quality.

Many consumers said that compared with the previous years, GAP has not changed much in fashion styles, and lacks fashion elements.

It is undeniable that there is a market for basic funds, but not for GAP.

In fact, the location of UNIQLO is mainly based on basic funds, but UNIQLO has invested a lot of money in the research and development of new fabrics, and fabrics with technical content such as fleece, light feather and so on have attracted a large number of customers to pay.

Looking back at GAP, whether it is from design or fabric research and development, it seems plain.

This shows that the performance of GAP is declining, and the product is the core issue.

GAP group's latest financial data show that as of the third quarter of November 3, 2018, group sales grew by 6.5% to $4 billion 89 million, and net profit increased 16% to 266 million dollars over the same period.

As the main brand, GAP sales fell by 7% compared with the same period last year, and the same store sales in the first quarter and the second quarter showed a 4% decline.

In addition, in the 2017 fiscal year, GAP brand's annual sales volume was $5 billion 318 million, a year-on-year decrease of 2.5%.

The number of stores has also been shrinking with the decline in performance.

In the first quarter of 2015, GAP announced that it closed 175 stores in North America, closed 140 in 2016, and closed 130 shops in mainland China in 2017.

In January 20th this year, the flagship store of GAP Fifth Avenue in New York was officially closed for 20 years.

In fact, GAP also has a glorious period.

At the early stage of the development of the company, the product positioning was simple, leisure, easy to match, cost-effective, and was once popular among consumers in the United States.

Since then, GAP has launched the children's wear product line, bought a relatively high-end brand BananaRepublic, launched a more inexpensive brand Old Navy, rich product matrix.

Entering the Asian market is also full of enthusiasm.

It is a great pity that GAP can not keep pace with the times and grasp the trend.

Although measures such as shutting down stores and replacing CEO have failed to make their performance rebound, instead of being credited by the international rating agency Fitch, the credit rating has dropped from BB+ to junk BBB-, which is undoubtedly exacerbated.

In the seventh year of entering the Chinese market, in the face of the decline in product sales and the increasing pressure of competition, GAP wants to continue to make progress, adapt to change and pay close attention to its products.