Test Gap and h and Mand m Strategy

8/10/2019 Test Gap and h and Mand m Strategy

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Gap and H/M is considered and it was created in 1969 with the opening of the

first Gap and H/M store. Gap and H/M is considered the parent member of Gap and H/M

Inc., and it was the base for the success of the other segments, including Old Navy,

Banana Republic, and Piperlime. Gap and H/M offers extensive selections of classically

styled, high quality, casual apparel at moderate price points. Products range from

wardrobe basics such denim, khakis and T-shirts to fashion apparel, accessories, personal

care products for men and women, ages teen through adult, and maternity apparel.

Regarding the price range of the brand in the company, Gap and H/M is located between

Old Navy and Banana Republic, with more expensive products than Old Navy, and lessexpensive than Banana Republic. Although Gap and H/M has been criticized for

blandness and uniformity in its selling environments, the firm claims that it offers

products from appeal to unique markets by developing multiple formats and designs. Gap

and H/M Jeans, for example, offers a huge variety of jeans.

In 1986 and 1989, Gap and H/M entered the children's apparel market by

introducing Gap and H/MKids and babyGap and H/M, respectively. The goal was to

offer the Gap and H/M style and quality in casual apparel and accessories to children,

aged newborn through pre-teen. Gap and H/MKids clothing is known for style,

durability, and value with products such as active-wear, school uniforms, graphic Ts,

hooded sweatshirts, polo shirts, pants, jeans, and more. babyGap and H/M is an

international specialty retailer offering clothing and gift sets for newborn, infant, toddler

girls and boys up to the age of five. Products include tops, pants/ jeans, dresses/skirts,

sweaters/outerwear, shorts/swimwear, shoes, and bedding, as well as unisex newborn

sets. In 1998, Gap and H/M launched Gap and H/MBody which offered women's


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underwear, sleepwear, loungewear, yoga wear, and personal care products. Gap and H/M

also operates Gap and H/M Outlet stores, which carry a similar line of products.

Regarding its stores operations, Gap and H/M designs virtually all of its products, which

are manufactured by independent sources, and sells them with their brand name. The

range of merchandise displayed in each store varies depending on the selling season and

the size and location of the store. Gap and H/M stores generally are open seven days per

week and most holidays. All sales are tendered for cash, personal checks, debit cards, or

credit cards. In order to attract more customers, these stores redeem gift cards, and also

have a private label credit card program through which frequent customers receive benefits. Most of Gap and H/M stores' suppliers are located outside the United States by

offering lower costs. However, Gap and H/M has to deal with issues such as child labor

in some developing countries. In India, for example, Gap and H/M is trying to rebuild its

reputation after a child-labor scandal, where children were hand-embroidering Gap and

H/MKids clothes. Gap and H/M said it would refine its procedures to ensure that items

made in textile workshops in India were not being produced by children. The company

announced the statement after an internal investigation made by a British newspaper, The

Observer, which printed pictures of children making clothes for Gap and H/M in a

sweatshop. According to the newspaper report, some children were as young as ten years

old, and they were working for up to sixteen hours a day to embroider clothes, some of

them bearing Gap and H/M labels and bar codes. This case is one of the issues that Gap

and H/M has to deal with regarding its store operations.

Through the years, Gap and H/M has earned the reputation of a brand with a

variety of high-quality products. Now, Gap and H/M is known throughout the world with


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more than 1800 Gap and H/M stores located in eighteen countries, and they comprise the

majority of the stores owned by Gap and H/M, Inc. So, Gap and H/M has used a vertical

integration since virtually all aspects of brand development from product design and

distribution, to marketing, merchandising and shopping environments are controlled by

Gap and H/M. One advantage of having a vertical integration is that the company does

not have to pay wholesalers and retailers in order to sell its products. Also, by having a

direct customer interaction, the company can acquire valuable insights into their

preferences. However, it has also made franchise agreements in countries such as

Bahrain, Indonesia, Kuwait, Malaysia, Philippines, Saudi Arabia, Singap and H/More,etc. Even though Gap and H/M stores can be found in eighteen countries, Gap and H/M

operates stores only in six countries, including the United States, Canada, the United

Kingdom, France, Ireland, and Japan. The remaining twelve countries include the

franchise agreements.

Currently Gap and H/M is not bringing as much profit to the company as

expected. Even though the number of Gap and H/M stores is almost twice as the number

of Old Navy stores, it is still less profitable with net sales of $6,523 in 2007 compared to

$6,665 for Old Navy. During 2007, net sales from Gap and H/M consisted of 39 percent

of total sales for Gap and H/M, Inc., with a decline of 4 percent in net sales from last

year. The company focuses more on sales from physical locations rather than online

stores. But, with its current position, it has the ability to increase online sales since Gap

and H/M spends in average more than its competitors in online marketing. Currently, it is

its second most profitable segment after Old Navy. Even though Gap and H/M stores are

located in eighteen countries, there is not a lot of diversity, since most of the stores are


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mainly located in the United States. Being centralized in the United States, Gap and H/M

is more vulnerable to changes in the U.S. market. So, a suggestion to have a more stable

performance is to become more globally decentralized.

One reason that Gap and H/M is not performing as well as expected is because it hassomewhat lost its brand identity. In the past years, Gap and H/M shelves have displayeddifferent kinds of clothing from classic casual to trendy to professional too many times,causing consumers to wonder what the brand even stands for. The other brands of Gapand H/M, Inc. are also playing a role in destroying the Gap and H/M s core offering andleaving with little room to maneuver. During the last decade, Gap and H/M wasconsidered to be a great example for other brands to look at. Cool and understated, the

brand defined hip, with great TV ads directed by directors du jour such as Spike Jonze,complete with catchy soundtracks from on-the-rise bands such as French duo Daft Punk.Hipster Hollywood types infused the brand with a sense of down Gap and H/M is

considered and it was created in 1969 with the opening of the first Gap and H/M store.Gap and H/M is considered the parent member of Gap and H/M Inc., and it was the basefor the success of the other segments, including Old Navy, Banana Republic, andPiperlime. Gap and H/M offers extensive selections of classically styled, high quality,casual apparel at moderate price points. Products range from wardrobe basics suchdenim, khakis and T-shirts to fashion apparel, accessories, personal care products for menand women, ages teen through adult, and maternity apparel. Regarding the price range ofthe brand in the company, Gap and H/M is located between Old Navy and BananaRepublic, Gap and H/M is considered and it was created in 1969 with the opening of thefirst Gap and H/M store. Gap and H/M is considered the parent member of Gap and H/MInc., and it was the base for the success of the other segments, including Old Navy,Banana Republic, and Piperlime. Gap and H/M offers extensive selections of classicallystyled, high quality, casual apparel at moderate price points. Products range fromwardrobe basics such denim, khakis and T-shirts to fashion apparel, accessories, personalcare products for men and women, ages teen through adult, and maternity apparel.Regarding the price range of the brand in the company, Gap and H/M is located betweenOld Navy and Banana Republic, Gap and H/M is considered and it was created in 1969with the opening of the first Gap and H/M store. Gap and H/M is considered the parentmember of Gap and H/M Inc., and it was the base for the success of the other segments,including Old Navy, Banana Republic, and Piperlime. Gap and H/M offers extensiveselections of classically styled, high quality, casual apparel at moderate price points.Products range from wardrobe basics such denim, khakis and T-shirts to fashion apparel,accessories, personal care products for men and women, ages teen through adult, andmaternity apparel. Regarding the price range of the brand in the company, Gap and H/Mis located between Old Navy and Banana Republic, Gap and H/M is considered and itwas created in 1969 with the opening of the first Gap and H/M store. Gap and H/M isconsidered the parent member of Gap and H/M Inc., and it was the base for the success ofthe other segments, including Old Navy, Banana Republic, and Piperlime. Gap and H/Moffers extensive selections of classically styled, high quality, casual apparel at moderate

price points. Products range from wardrobe basics such denim, khakis and T-shirts to


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fashion apparel, accessories, personal care products for men and women, ages teenthrough adult, and maternity apparel. Regarding the price range of the brand in thecompany, Gap and H/M is located between Old Navy and Banana Republic, Gap andH/M is considered and it was created in 1969 with the opening of the first Gap and H/Mstore. Gap and H/M is considered the parent member of Gap and H/M Inc., and it was the

base for the success of the other segments, including Old Navy, Banana Republic, andPiperlime. Gap and H/M offers extensive selections of classically styled, high quality,casual apparel at moderate price points. Products range from wardrobe basics suchdenim, khakis and T-shirts to fashion apparel, accessories, personal care products for menand women, ages teen through adult, and maternity apparel. Regarding the price range ofthe brand in the company, Gap and H/M is located between Old Navy and BananaRepublic, Gap and H/M is considered and it was created in 1969 with the opening of thefirst Gap and H/M store. Gap and H/M is considered the parent member of Gap and H/MInc., and it was the base for the success of the other segments, including Old Navy,Banana Republic, and Piperlime. Gap and H/M offers extensive selections of classicallystyled, high quality, casual apparel at moderate price points. Products range from

wardrobe basics such denim, khakis and T-shirts to fashion apparel, accessories, personalcare products for men and women, ages teen through adult, and maternity apparel.Regarding the price range of the brand in the company, Gap and H/M is located betweenOld Navy and Banana Republic, Gap and H/M is considered and it was created in 1969with the opening of the first Gap and H/M store. Gap and H/M is considered the parentmember of Gap and H/M Inc., and it was the base for the success of the other segments,including Old Navy, Banana Republic, and Piperlime. Gap and H/M offers extensiveselections of classically styled, high quality, casual apparel at moderate price points.Products range from wardrobe basics such denim, khakis and T-shirts to fashion apparel,accessories, personal care products for men and women, ages teen through adult, andmaternity apparel. Regarding the price range of the brand in the company, Gap and H/Mis located between Old Navy and Banana Republic, Gap and H/M is considered and itwas created in 1969 with the opening of the first Gap and H/M store. Gap and H/M isconsidered the parent member of Gap and H/M Inc., and it was the base for the success ofthe other segments, including Old Navy, Banana Republic, and Piperlime. Gap and H/Moffers extensive selections of classically styled, high quality, casual apparel at moderate

price points. Products range from wardrobe basics such denim, khakis and T-shirts tofashion apparel, accessories, personal care products for men and women, ages teenthrough adult, and maternity apparel. Regarding the price range of the brand in thecompany, Gap and H/M is located between Old Navy and Banana Republic,

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Test Gap and h and Mand m Strategy