GAP
Strategic Concepts & Mechanics
Primary Evidence
"In a small city like Ube, information is quite isolated. To get the latest fashion information, I often buy and read fashion and jewelry magazines. I travel overseas once a year, especially to see stores in Western countries such as the United States and the United Kingdom. I was particularly inspired by the advanced retail businesses at the time, such as ESPRIT, BENETTON, GAP, LIMITED, NEXT, and other chain store brands. Initially, I participated in business study groups organized by the industry associations and went overseas with my peers. Later, I would go alone to the United States to purchase items like t-shirts and jeans; I also went to London, England to purchase t-shirts, jewelry, and antique watches."
"an article published in El País on June 16, 2008, it was commented that "Inditex's rise has been spectacular. Just four years ago, GAP, the leading American company at that time, doubled the Spanish group's sales, which was third behind the Swedish H&M. In 2005, it acquired European dominance and in recent years it has continued to grow strongly while GAP's business stagnated."
"Inditex is the only company, among the big ones in the apparel sector, that is fully vertical; GAP and H&M, for example, design and sell, but do not manufacture, and Benetton designs and manufactures, but their sales outlets are franchised."
"Clothing analysts remain skeptical about whether H&M will succeed in the tough American market. However, Stefan Persson's venture turns out to be a stroke of genius. The opening is well received and more stores quickly follow. By the end of 2000, H&M is awarded the International Retailer of the Year by America's National Retail Federation. In contrast, main competitor GAP stagnates in growth. Soon, the USA becomes H&M’s largest market after Germany."
"Already in one of his first interviews before he was to take over as CEO, Stefan Persson declared that the USA was the target. This despite the fact that his father had the opposite opinion. "I'm sure we would fit in America," Stefan Persson confidently tells Damernas Värld in 1981.[83](private://read/01jas9tvg84jycb27616w1f9k8/#note-83) At the turn of the millennium, the time is finally ripe. In tough competition with, among others, clothing giant GAP, with the brand Old Navy that every other college student already wears, H&M is now set to break through."