Old Navy’s decision to withdraw from China has made some consumers feel sudden.
Editor’s note: This article is from WeChat public account “ Zhongjing Jingwei ” (ID: jwview) Author Zhao Jiaran, the original title is: “Another! Gap sub-brands will withdraw from China, how can fast fashion brands break out of the Red Sea?”.
Following Forever 21 and New Look, Old Navy, a subsidiary of American apparel brand Gap, will also disappear from the perspective of the Chinese market.
Gate recently announced that its old Navy will withdraw from the Chinese market from 2020 after its independent spin-off, and will focus on the North American market in the future to maximize its benefits. Gai Yi’s financial report shows that the company is facing a decline in sales and a sharp decline in profits.
Gap Group’s third quarter profit fell by almost half
According to media reports, the Guyan Group recently announced that the Old Navy sub-brand will be withdrawn from China in 2020, focusing on the development of the North American market.
It is reported that the sub-brand was founded in 1994 and landed in China in 2014. In March this year, Guyan announced the spin-off of the Old Navy brand into an independent public company. The spin-off transaction is expected to be completed as soon as next year. In addition, the Gap Group will close approximately 230 stores within two years.
At the same time, the latest performance data disclosed by the Gai Group is also not satisfactory. In the third quarter of this year, the overall sales of the Gai Group fell by 2.2% to US $ 3.998 billion, compared with US $ 4,089 million in the same period last year. Net profit was US $ 140 million, a 47% year-on-year decline. Sub-brands Old Navy and Banana Republic have negative same-store sales.
Old Navy’s decision to withdraw from China also caught some consumers off guard. “This brand is located in a prominent location in several shopping malls in Beijing. It feels cost-effective and the quality is not bad. I didn’t expect to leave suddenly.” Consumer Ms. Li told reporters from China and Singapore in recent years. Fashion brands are facing the risk of closing their stores or retaining customers through discount promotions. She feels that she has fewer and fewer options.
Currently, the official website of Old Navy China does not display any information about the withdrawal or withdrawal from the Chinese market. Sino-Singapore Jingwei reporter from Old Navy staff