 One of the world's largest clothing retailer and iconic brand, Gap will open its first store in China next year, in order to facilitate its growth of international business. The company will also develop online sales business in European Union and Canada.
Gap’s Chief Executive Glenn Murphy said that after two years of performance improvement, the company now intends to "increase" investment in order to regain market share, while expanding its international business.
China will be the first direct access to a new market for Gap in more than a decade. The company has adopted this pattern in the Middle East, other parts of Asia and Eastern Europe, since it launched the franchise business model in 2007.
In his view, the US apparel brand has not yet fully explored Chinese market. Gap also plans to enter India and Brazil, but it has not yet decided which ownership patterns to adopt. The company has announced its plan of franchising stores in Russia from this year.
Toby Lenk, chief of Gap’s online business, said, the company will launch a website for two brands of Gap and Banana Republic in the United Kingdom by using a common payment platform and will start selling products next fall. |