Who is gap target customer
First, there is the supply chain issue. With the majority of their clothes sourced and produced overseas, tariffs and transportation costs have taken their toll. Throw in increased labor costs amidst a rapidly-rising minimum wage, and we can see how the turnaround can be tough.
And yet, to be fair, every retailer is operating under these same conditions though some are ahead of the game on supply chain. And many of them have turned around their fortunes, either through aggressive reboots or through soft maneuvers to assert relevancy. Look, GAP was great for the twilight of the age of conformity—a bygone era of the not-too-distant-past in which consumers wanted to fit in, not stand out. These days, high school and college kids are wearing their identities on their sleeves, literally.
Clothing and fashion are no longer a way to show you belong, but rather to assert your own sense of belonging. Unique pieces pulled from a rummage bin are far more stylish than whatever pullover hoodie GAP is selling in every urban area in the country. If consumers are in the market for nondescript, simple clothing, it is easier and cheaper to get it from one of these retail titans. If they want luxury, they go to Nordstrom, if they want retro they go thrift storing.
If they want affordable they go to Ross or the Rack or even Dollar General. But who is going to the GAP, and what are they looking for? While not everyone may enjoy the clothing style they offer, everyone can certainly appreciate the affordability aspect that Old Navy is highlighting. A bit more muted and understated, right? They also switch up what they show on their homepage. One week it could be a sale on polos, but the next week they could be advertising their latest jean cut and yes, they are full price.
The clean lines make the homepage appear organized and expensive, and nothing is out of place. Banana Republic offers consumers high quality fashion without having to head to 5th Avenue, Michigan Avenue, or Rodeo Drive.
Rapid changing trends. The current economic climate means less consumer expenditure and therefore less sales. Overall looking at the model, I feel Gap should focus on diversifying. As Gap only current operate in one market apparel market it would be great opportunity for them to enter a new market and do something completely different.
This would be the riskiest strategy for Gap as they would be moving into a market where they have little experience and knowledge. Therefore it would be crucial for Gap to have a clear idea of what it would expect, this could be done by both primary and secondary research. The higher the risk, the higher the reward. Planning new ventures in Europe. Gap is now available to several countries due to online shopping and worldwide shipping.
New stores in Taiwan. Gap wanted to inject new energy and confidence into their product range. This gives Gap the opportunity to re vamp their products. Gap could consider producing a home ware range. Gap could become more vertically integrated. Therefore Gap are affected by the increase in production cost.
By becoming vertically integrated Gap become in control of cost and production time. Gap should definitely consider marketing to an alternative age range.
Our primary research App. Gap should reflect the consumer they want to attract through the use of social media, various marketing campaigns and using older models in advertising.
Therefore Gap should be targeting this older generation, where they know they have demand and can ensure sales. An example of the type of consumer they could target is seen on page Todays generation are much more experimental in the way they dress. Gap could think about launching a trial clothing range with all new designs that reflect current fashion trends.
By doing a temporary trial Gap could see whether or not a new brand image would be a success or failure for them, and if successful could lead to great success for the brand and would be much more appealing to a younger market.
Gap has lots of competition within the fashion industry. It is crucial for a business to have a USP in order for them to stand out and differentiate themselves from other competitors.
This is something Gap are struggling to do. The main reason for this I believe is due to them not being a trendy, fashion forward brand.
So, similarly to what has been said above Gap need to consider changing and adapting their clothing range in order for them to compete with these other high street brands who strive on being unique.
Gap currently only operate in one market, the apparel market. This is quite risky for Gap because if that markets collapses for example due to economic reasons in my PESTLE analysis, there is not another branch for Gap as a company to fall back on and bring in some source of income. Political Factors: 7 2. Economic Factors: 8 2. Sociological Factors: 8 2.
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