Legend: Gap, An American Fashion Brand, Plans To Sell Its Business In China

   

Gap Inc., the US fashion group, is weighing a variety of potential options, including the sale of its China business, due to poor sales performance.

 

Gap is working with a consulting firm to study various options for sale and is initially in contact with potential acquirers to understand their interest in the business, according to a person not named. At present, both sides are still in the early stage of relevant discussions, and gap group may choose to continue operation. A gap spokesman declined to comment.

 

China market has always been one of the key development objects of gap group. In 2015, the group said it hoped to double its sales in China within three years to become the world's second largest market after the United States.

 

 

Gap group entered the Chinese market in November 2010, and set up the Greater China headquarters in Jing'an District of Shanghai. Gap products cover adults, children and infants, becoming the first American retailer to provide clothing for Chinese family consumers in the form of a single store.

 

At present, gap group has nearly 200 stores in Greater China. In addition to physical stores, consumers can also purchase products through gap tmall's official flagship store and official wechat app.

 

Gap group was founded in San Francisco, USA in 1969. It is known as the synonym of classic American style in the world. The group owns famous clothing brands such as old navy, gap, Banana Republic, intermix, ATHLETA, hill city and Janie and Jack.

 

The U.S. remains gap's largest market, with revenues from Asia continuing to shrink, accounting for only about 5% of its total revenue, according to Bloomberg.

 

As early as February last year, gap group's leisure and fashion brand Old Navy (which entered China in 2014) announced that it would completely withdraw from the Chinese market and focus more on North American business.

 

Last September, Dutch fast fashion brand C & a sold its China business to Beijing based private equity firm Zhongke Tongrong.