Is there hope for Gap in China? - Janet Carmosky

Janet Carmosky via Flickr

Janet Carmosky kicks off another debate on US companies entering the China market: is US mall stalwart Gap having a chance in fashionable China, she wonders in the China Business Network.

Despite having lived in the USA for 8 years now, on any given day I am likely to be wearing something purchased on my last trip to Shanghai or Beijing. Quite frankly, the clothes in America are Really Really Boring. If I, as an American, find Gap clothes boring, what will the consumers who have grown up in a place like Shanghai think? Where’s the bling, the prints and colors, the fabrics that move, and patterns that pop?
Gap, here’s hoping your people on the ground see the markets in Shanghai and Beijing as a challenge to Gap’s design, branding, operations, and most of all, HR and organizational mettle. Because “cornerstone” sounds altogether too corporate a term to describe what will need to be an all out war for share in the world’s toughest fashion retail market.

More on Gap's hope and fear in China at the China Business Network.

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Janet Carmosky is a speaker at the China Speakers Bureau. When you need her at your meeting or conference, do get in touch.

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Foreign brands struggle as Chinese retailers rise - Paul French

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Depending on how you look at the figures, retail grew up to 20 percent in China, retail analyst Paul French tells Forbes and compares the fate of foreign retailers like Gap force domestic competition from the Trinity Group and China Lilang.
Paul French in Forbes:

Take a look at people like Trinity Group (controlled by Hong Kong’s Fung brothers) who recently acquired Kent and Curwen and Gieves and Hawkes. They’re positioning well to catch the next wave of wealthy Chinese men – i.e. the one’s who will probably not just be content with Dunhill! Also take a look at China Lilang, recently IPOed and who are typical of the new Chinese apparel retail entrepreneurs in that the company is designing, sourcing, manufacturing and retailing casual apparel very successfully. Trinity and Lilang represent the two major strategies – acquisition vs manufacturer-turned-retailer. In reality both work.

Paul French is not sure whether recent plans to enter China are that smart:

I’m not sure where The Gap will fit. As a brand struggling internationally and in its home market, it’s perhaps a little late to hope China will save them. It is still true that the trends that sweep China emerge from Europe, and to a lesser extent America and Asia (really only Japan and Korea) and Chinese retailers imitate them. Right now the apparel market is moving from a five-year love affair with sportswear — and a massively crowded market of foreigners and locals — towards fast fashion. Currently all the running really is being made by foreigners in this sector: Zara and Mango — the global phenomena of Inditex, C&A, H&M, Vero Moda, and others. Gap would have been far smarter to come to Shanghai with their Banana Republic brand right now if they wanted to catch a profitable wave.

More in Forbes.

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Paul French is a speaker at the China Speakers Bureau. Do you need him at your meetin

Paul French by Fantake via Flickr

g or conference? Do get in touch.

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