Gap has unveiled its plans to enter the Chinese market as part of its global expansion strategy. The retailer will open stores and launch an online site by the end of 2010.

Four Gap stores - two in Beijing and two in Shanghai - featuring a complete range of Gap adult, GapKids, and babyGap products will open. At the same time, the retailer will also launch its online retail website in China that will enable Chinese consumers to shop for Gap products whenever and wherever they want. As part of its long-term, multi-channel market entry strategy, Gap also plans to open additional stores in other major regions, including Hong Kong, in 2011.

As Glenn Murphy - Chairman and CEO of Gap Inc. – explains, it is a real opportunity for the brand: "Now, after spending a lot of time listening to Chinese consumers and learning more about their shopping preferences, we're excited at the prospect of meeting their fashion needs -- initially by bringing our Gap designs to our stores and online later this year."
But isn’t it a little late? How will Gap be able to enter the Chinese market and stand out from local and foreign competitor brands such as Uniqlo, Next, H&M, C&A, and more that are already present in this market? This represents a real challenge for Gap- the brand will have to find a way to define itself in a way that is different from competitors and relevant to consumers in a compelling way.
Gap will have to work hard to attract and retain the Chinese customers’ attention by differentiating itself from existing casual apparel brands in the region - such as Giordano and Uniqlo, which have 1,800 and 800 stores, respectively. Gap will have to offer something unique and constantly keep up with the latest trends in different regions in order to attract customers to their stores. Furthermore, Gap will be bumping up against the largest specialty retailer, Inditex (Zara), which boasts of short inventory lead time in bringing the latest fashion trends to its stores.
Let’s wait for the store openings later this year and see whether Gap can succeed in catching up with rival brands, or not.