GAP entered a new market
by shengyuanfang ~ January 26th, 2011. Filed under: Uncategorized.
Last October GAP entered Chinese market. The success of the company has been shown in the past four decades. However, will it be successful in this market as it does in others? Why GAP chose to enter into Chinese market at that time? First, the most of GAP’s products are made in China. GAP spent lots of shipping cost to ship products from China to other countries; however, the company did not do the business in the place where the products are made in. This looks strange. The most concern of starting business in China is the difference of the culture between West countries and East countries. The habit and left style between those countries are totally different; therefore, the idea of fashion may be totally different. However, due to the widespread use of Internet, and the increasing high of the communication that is contributed to trade in China has changed the GAP’S concern during the last decade.
Lots of the companies have shown they also can be successful in China. This makes GAP to thinks about entering Chinese market. As can be seen from what GAP has done from the past three month, GAP is still very careful to enter the market. The best word to describe the situation of GAP in China is “exploration” due to the following facts. GAP did open any stores in any cities; the only way to sell their products is the online store. It is a safety way to enter a new market. GAP store its products in the factories that can be either sell inside of China or export to other countries to reduce the risk of loss. I see the setting of the price is very appropriate. However, GAP did not do very well on Promotion part; I cannot see any ads on communication between the company and people. How people know your products without doing this part? Only depend on what Mark Zuckerberg wears in the movie of Social network? 
So, it is better for GAP to focus on this “P”.
Lots of the companies have shown they also can be successful in China. This makes GAP to thinks about entering Chinese market. As can be seen from what GAP has done from the past three month, GAP is still very careful to enter the market. The best word to describe the situation of GAP in China is “exploration” due to the following facts. GAP did open any stores in any cities; the only way to sell their products is the online store. It is a safety way to enter a new market. GAP store its products in the factories that can be either sell inside of China or export to other countries to reduce the risk of loss. I see the setting of the price is very appropriate. However, GAP did not do very well on Promotion part; I cannot see any ads on communication between the company and people. How people know your products without doing this part? Only depend on what Mark Zuckerberg wears in the movie of Social network? 
So, it is better for GAP to focus on this “P”.