(1) Would the GAP clothing chain be successful in Spain?
(2) would they be successful based on Spain's ecomony and retail industry?
This first article discusses the fashion market and the Spansih
economy. I believe you will want to read it in its entirety:
In the textiles sector, the market for apparel in Spain is the most
important with several events taking place throughout the year that
stimulate demand. These events continue to highlight Spain's image as
an international center for the fashion business. The clothing/apparel
sector in Spain is constantly growing, particularly imports. In 2001,
imports increased by 20% in the clothing sector. In 2002, imports in
the Spanish textile/dressmaking sector went up 4.5% to USD 7.3
billion. Imports in 2002 of off-the-rack garments and knitwear (USD
5.1 billion) were responsible for much of this rise with a growth of
11% over the previous year. The promotion of fashion in Spain has
increased the apparel market considerably.
The clothing/apparel sector in Spain is constantly growing,
particularly imports. In 2001, imports increased by 20% in the
clothing sector. In 2002, imports in the Spanish textile/dressmaking
sector went up 4.5% to USD 7.3 billion. Imports in 2002 of
off-the-rack garments and knitwear (USD 5.1 billion) were responsible
for much of this rise with a growth of 11% over the previous year.
The industry is expected to grow in the next few years thanks to
rising wages and increasing employment. Increased purchasing power
will benefit the apparel industry especially as Spain has been the
fastest growing major economy in Europe over the last 3 years.
Within the market, the best prospects for U.S.-made apparel include
high quality sportswear design with a casual style and casual wear.
Spanish youth are strongly influenced by fashion trends from the U.S.,
thus, casual wear like those linked to U.S. brands, universities and
sports teams have a positive outlook. Besides this, growth in the
active wear market has been driven primarily by an increasing emphasis
on "extreme sports", a growing consumer preference for apparel with a
relaxed feel.
http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr115021e.html
This second article providese an overview of the export market from
the United Kingdom to Spain. The article also states that Spansih
clothing manufactures are producing quality clothing due to
modernization of their plants:
Exports of clothing from the UK to Spain were reported to be worth
about £97.1 million in 2002 which makes Spain the 5th largest export
market in the world for UK clothing exports.
Opportunities exist for young fashion wear, particularly street and
club wear. Cocktail and evening wear, traditionally an area of
strength for UK firms in the market, continues to offer good
potential.
. . . the import market for clothes and fashion goods expanded rapidly
after Spain's accession to the EC as the import duties were reduced
and the non-tariff barriers were dismantled.
The [Spanish] consumer prefers to shop as a past-time and buys
clothing from a shop where the garment can be adapted to fit perfectly
and any alterations done, often free of charge.
http://www.trade.uktradeinvest.gov.uk/clothing/spain/profile/overview.shtml
(2) I am looking for any resources that can tell me if the GAP has any
plans to expand their business into Spain
The same article referenced above states:
The well known retailer, GAP, is expected to open its first store in
Barcelona in the future.
However, other information I found contradicts this statement and I
could find no corraborating news articles.
The articles listed below do not mention Spain; however, there are
hints at ?other marketing and distribution channels? and finding new
niches through market research.
Is Gap Inc. going to be coming to my country soon?
Old Navy and Banana Republic both have stores located in the United
States and Canada. Gap stores are available in four countries outside
of the United States: United Kingdom, Canada, France and Japan. While
we continue to test on a limited basis other marketing and
distribution channels, our current strategy focuses on the countries
mentioned above and continuing expansion through company owned and
operated stores.
http://www.gapinc.com/about/faq.htm
And this investment report from online Gale database:
In terms of other growth initiatives, Gap announced that it would open
3 Banana Republic stores in Tokyo, Japan next year. Management
believes the Japanese consumer loves luxury brands and also likes
American styling, which should make Banana a great fit in Japan, the
second largest apparel market after the US. Gap announced earlier in
the quarter that it was putting together a team, headed by Gap veteran
Gary Muto, to open pilot stores in fall 2005 for a new concept aimed
at the 35+ year-old woman. Thus, while Gap continues to optimize its
store fleet, closing mainly Gap stores in the US, it is growing its
business where appropriate.
Nov 19, 2004 Investment Report
Business and Resource Center
Gale Databases
From Gap?s third-quarter conference call:
Now, I would like to turn it over to Paul. PAUL PRESSLER, PRESIDENT,
CEO, GAP INC.:
Finally, I'm excited to announce that based on extensive market study,
we are launching Banana Republic in Japan in the fall of 2005. We are
opening 3 stores within the leading shopping areas in Tokyo, to pilot
the concept. Japan is the largest apparel market outside the U.S. and
represents a significant long-term growth opportunity for us. The
Japanese consumer has a high affinity for American sensibility, as
well as for luxury products.
Q3 2004 Gap Inc. Earnings Conference Call - Part 1.
This Business Week article talks about niches and market research.
No one expected Pressler to launch a fashion makeover at Gap when he
took the reins in 2002. . . .And now Pressler, a former Walt Disney
Parks & Resorts chief with little prior apparel experience, has given
Gap's turnaround staying power by focusing on such basics as
operations, inventory, and market research.
Of course, Gap would have to find a niche it doesn't now cater to --
and do so in a market that's far more over-stored than a decade ago.
Targeting boomer men is one prospect, say analysts. "There's no place
for guys who aren't Banana-Republic skinny," says Richard Jaffe, an
analyst at UBS Investment Research.
Business Week, April 19, 2004 i3879 p42
THE GAP HAS REASON TO DANCE AGAIN; CEO Pressler's tighter operations
and customer focus have profits hopping.
And more information on GAP?s plans for markets and brands:
Pressler has settled on a plan to develop a moderately priced clothing
chain aimed at women aged 35 to 50.
The San Francisco-based company has big hopes for its new retail
concept. Gap aims to generate an additional $1 billion to $2 billion a
year in sales
http://uk.biz.yahoo.com/040805/244/ezo3a.html
This article is more about the expansion in Japan; however, I?m
quoting the article as it hints at continued international growth:
exploring opportunities to expand the company's Banana Republic and
Old Navy brands is a key focus of the company's long-term
international growth strategy.
http://news.morningstar.com/news/PR/M11/D18/1100813461014.html
Does this give you the needed information or do you need anything else?
Meadowwolf-ga |
