http://www.thebudgetfashionista.com/archive/is_the_gap_dead/?/main/tellaFriend/is_the_gap_dead/
As we know Gap Inc is a major company with three brands living under it. (The Gap, Old Navy and banana Republic) However what a majority do not know is that in the past three to five years The Gap has been struggling financially and struggles to beat out competitors. Recently The Gap has tried to compete with Forever 21 which is geared towards teens and young women, and low end brand Old Navy is currently trying to compete with Target.
But how is this hurting Gap Inc. Many suggest that they want to see more out of the company for example clothes for the working woman who works a nine to five job instead of the woman who parties on Saturday nights. At old Navy many would like to see a place where a woman can shop for herself as well as her husband. Competing with companies places The Gap is at a disadvantage simply because they are known for their unique style and individuality. However gearing their clothes towards a more professional woman would grant them more customers especially those who want to break away from the traditional black work suit.
Another issue Gap Inc must fix is how they advertise and the cost of clothing. The Gap especially uses celebrities to promote their products but instead they should use normal people. This would allow the consumer to have a connection with the company as well as the product. Personally I would not care if a celebrity looked good in a cashmere sweater and khakis. Just because they do doesn't mean I will. The Gap while being unique and individual, can see way too over priced. This is hurting the company because a majority of people do not want to spend 125 dollars on a pair of jeans. Now don't get me wrong The Gap has really comfy jeans and they fit perfect but 125 is just too much. If the company were to lower their prices they would in fact gain more costumers and make more money.
I agree with this article, I think that if The Gap changed around on how it presented clothes to its customers many would buy from them. The Company could break out from the struggle and begin to rise again
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This is very interesting. I would never expect that Gap would be struggling in any way. Especially since they have three different brands. I do agree that the Gap seems to be a bit untouchable. I have grown up thinking this is how the Gap always is, high prices made for put together people and celebrities. That definitely is not something that I can afford. I go to Gap when Forever 21, Target, or even Nordstrom doesn't have anything. Maybe if they even thought about changing their image, they could get more customers. As for advertising, I like the celebrity advertisements. But I understand how they believe normal people cannot relate to them. I think of it more as their clothing is clean and simple and not so much that celebrities only wear it. Has Gap made any changes now so that they can relate to their main demographic?
ReplyDeleteThat article you linked to is two years old. Things are a wee bit different in today's retail environment. And by the way, Gap Inc. is not struggling financially. Have you read a recent financial statement? No debt, a billion in cash, and solid earnings growth. They must be doing something right.
ReplyDeleteEven if it is not the right time, I agree with Lauren on this being very interesting. The GAP has been a major store throughout the years. The last time I went to GAP was when i was ten I think. If we are talking about recent days they have been doing very well. They have a rise in their profits and are still popular throughout the country. This company is still an impressive company and I am sure we haven't heard the last of them.They are still very popular in the toddler departement and their stores seem to be busy everytime I go in. Besides the article being an older one, which I did that on my blogs too, I think you did a great job laying down the facts and providing your opinion on the situation. I agree on all the statements you made and keep up the good work!
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