Gap, The US Clothing Brand, Has Slumped Next Year Because Of The Collapse In Cotton Prices.

As an internationally renowned fast fashion fashion brand, after ten years of financial crisis, Gap wants to make a comeback on the year-end holiday to recapture the peak of the year. According to statistics, the sales revenue of the brand has returned to the level of US $14 billion 500 million in 2002 this year, and the expansion of the international market is canceling its share in the domestic market.

Since 2002, as fast selling fashion brands have sprung up everywhere, and brand price wars are becoming more and more intense, Gap's dominance in the industry has been hit hard. Brands like H&M, Zara and UNIQLO are competing for their target customers and market share.

In such a white hot competition, cotton prices suddenly plummeted this spring, and Gap just bought a lot of cotton at an inappropriate time, so that they had to spend considerable cost and even affect the company's revenue. In 2011, the share price plummeted by 20%. However, Gap has also made some smart moves in the past few years to save the decline. For example, we should strengthen financial management, enhance the efficiency of the company as much as possible, and enhance the stores' value. Sale and profit Ability and so on.

However, Wall Street analysts are still worried about the unfavorable progress of Gap in the spanformation of the format, and the three quarter results are not ideal, especially in the North American market where the sales situation has been lingering, and the cost continues to improve, so the consumer market continues to languish. Gap We can only hope that we will be in a declining position at the end of the year-end holidays.

Analysts believe that the main problem of Gap is too much emphasis on jeans and Oxford shirt products, and some of the shops are too messy. Despite its success since 90s of last century, Gap has not adjusted its business strategy in time to keep pace with the fashion trend of the times. Gap brand sales should be simplified and the appearance of the shop needs to be refreshed. However, it is easier said than done. Because the shop network is too large, it is not necessary to change all kinds of things overnight.

Compared with Gap, fast selling fashion chains like H&M and UNIQLO often replicate the latest styles of fashion show and fashion magazines quickly, so that customers are flatter. Gap is not able to capture the fashion taste of the middle class in the US. Murphy, chief executive, explained that Gap had no need to catch up with fashion but to interpret fashion.

Investors are eagerly looking forward to the fact that Gap designers can understand how online marketing and global franchising can satisfy customers' needs in time. As cotton prices continue to fall, market participants believe that even the US consumer market will continue. Weak from fatigue Gap is still expected to make a comeback in 2012, especially online direct marketing volume will continue to grow at a rate of 20% to 2013, and online and overseas markets will contribute 30% of its sales revenue. Despite being squeezed by similar brands, according to authoritative investigation, Gap and its old Navy brands still rank the top ten in global fashion brands.

Today, Gap has integrated many of its brands into a single online sales platform. Its products are available in over 90 countries, compared with less than 8 countries in 2006. Chief executive Murphy firmly believes that the company's overseas promotion will make up for losses in the US market. The advantage of Gap lies in its diversification of brand and sales channels, as well as American leisure. fashion The representative.