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Gap Launching China Strategy
Gap Inc., which has had an up-and-down, sometimes rocky experience overseas, considers its next move China the cornerstone of the firm's global strategy.
On Wednesday, the $14.2 billion Gap, which generates $1.6 billion of its volume overseas, divulged details of the company's China foray, saying four large flagships in Beijing and Shanghai and e-commerce will launch simultaneously in the fourth quarter. High-profile locations and executives with global brand experience outside the apparel sector are part of the program.
Whereas Gap stores around the world are often franchised, the China units at least the first four will be company owned and operated, and at 15,000 to 19,000 square feet each, will display the full range of Gap, GapKids, babyGap and 1969 Premium Jeans products. Gap expects to open its first Hong Kong stores next year, as well.
In Shanghai, a two-level unit will open on Nanjing West Road in the Venture Tech building. The other store will be on Mid Huaihai Road, one of the city's high streets. In Beijing, a two-level store will be in the APM building on Wanfujing Street, and the other unit will be in Chaobei Joy City, a large regional shopping center.
At the new Gap China headquarters in Shanghai, an unorthodox dual leadership management has been established. Redmond Yeung, formerly president and chief operating officer of China and Asia-Pacific for Best Buy, has been named president, to oversee business development and real estate and navigate China's bureaucracy. Lorenzo Moretti, formerly executive vice president and chief operating officer for Tesco in China, who also led Marks & Spencer's expansion in Asia, has been named managing director to oversee store operations, product-to-market activities and...