American Casual Wear Brand GAP On a Retail Expansion Mode in India

GAP, the iconic American casual apparel and accessories brand from the stable of San Francisco-headquartered GAP Inc, is on an expansion mode in India. The NYSE listed company through its Indian exclusive franchise Arvind Lifestyle Brands Ltd (ALBL), an arm of the $1.7 billion Arvind Ltd, has set out on a journey to expand its retail footprint across India.

GAP, which at present has 13 outlets and 14 shop-in-shop stores in different parts of the country, beginning its Indian journey in May 2015, is looking at adding at least four more outlets by August, this year and as many as 10 shop-in-shop stores across the country by the next season, said Parag Dani, GAP-India Business Head at Arvind Lifestyle Brands. GAP outlets are now located in NCR, Mumbai, Bangalore, Pune, Chennai, Indore and Kolkata. There are shop-in-shop stores in tier-II cities like Ranchi, Bhubaneswar.

It may be mentioned here that Doris and Don Fisher opened the first GAP store in San Francisco in 1969. The whole idea was to make it easier for the consumers to grab a pair of jeans. The long-term mission and vision were much higher. Over the last 48 years or so, the company has grown from a single store to a global fashion business with five brands — GAP, Banana Republic, Old Navy, Athleta and Intermix. So many years down the road, one can find GAP clothes in more than 90 countries all over the world through a chain of 3,300 company-operated outlets, nearly 400 franchise stores, and e-commerce sites and the number is still growing.

GAP’s move to expand footprint in the Indian market can be justified in the wake of the fact that the apparel retail market in India, at this point in time, is estimated to be nearly Rs 3,00000 crore and is growing at 10 percent per annum. At this rate, the apparel retail market in India is expected to reach a whopping Rs 7,50,000 crore level. GAP is understandably keen on tapping this large and ever-growing market.

The company is positioning GAP as ‘Elevated American Essentials’ brand and there are not too many players in this particular segment. “And the advantage is since we are positioning our brand in the middle, we are getting consumers from the upper segment, the lower segment and there are lateral movement of consumers as well. We cater to the entire family-from newborn baby, toddlers, kids to adult men and women. At present, 38 percent of its business comes from the men’s segment, 34 percent from the kids' segment and 28 percent from the women’s segment,” said Dani.

The company has also made its entire range available online (on nnnow.com and Amazon.in/gap), garnering larger visibility and access to the brand across the country. “Although we have a strong omnichannel presence and we believe in ‘one consumer, one journey’ philosophy, our online sales have just reached double-digit (percentage wise). And interestingly, 50 percent of our online sales come from tier-II, tier-III cities,” said Dani.