Old Navy Overweight Chinese Electricity Supplier Business

May 9th, in the US

Apparel Group

Under the overall performance downturn, its brand

It is regarded as the main force to boost business.

In the fourth quarter of January 28th, Gap Group sales rose 1% to 4 billion 430 million dollars, the first growth in seven consecutive quarters of decline, and this is mainly due to Old Navy's same store sales rose 5%.

Its official also said that in 2017, 40 new outlets will be added to the world, with emphasis on Old Navy.

With the support of the group, the key word of Old Navy this year is "attack".

This not only reflects the expansion of online store, but also includes the increase of online business.

Since its entry into the Chinese market in 2014, Old Navy has launched its official website in China, has entered Tmall and opened new stores. Although it is late than other fast fashion brands, its popularity is much smaller, but its development momentum is relatively good.

At present, it has entered a large number of cities such as Shanghai, Beijing, Shenzhen, Guangzhou, Wuxi, Suzhou and Wuhan.

A few days ago, Old Navy also announced the official launch of China's official mall App.

(Old Navy official mall App home)

Open Old Navy official mall App can see that the brand is divided into three categories according to women's clothing, men's wear, girls, boys, infants and babies. The style of page design, product display, commodity price and promotion activities are all consistent with PC's official website.

But one innovation is that Old Navy's App and sister brand Gap's App have been opened.

From Old Navy, you can jump directly to Gap to achieve a App purchase of two stores at the same time.

(Old Navy official mall App and Gap get through)

In fact, building a Chinese official website and opening the official mall App is a common means for fast fashion brands.

In addition to Old Navy and Gap, ZARA, Massimo Dutti, H&M, UNIQLO, Forever 21 have their own Chinese official website and official mall App.

According to public figures, the scale of China's electricity supplier market in 2016 was about 19 trillion and 900 billion, which has doubled in 2011 compared with 6 trillion and 400 billion in 2011.

It is clear that fast fashion brands will never miss this "fertile land" in the fastest growing consumer market on the global line.

However, their operation mode of online business is different from domestic brands (generally choose to enter the third party platform) - almost all the official mall is placed in the most important position, or insist on building their own mall instead of platform (such as H&M), or build their own mall and enter Tmall at the same time (such as UNIQLO, Zara, Massimo Dutti, Forever 21).

In short, the official website is an extremely important step for them.

For example, ZARA went online in its official mall as early as 2012, but it only started selling in Tmall two years later.

H&M has so far not been in Tmall. In 2014, it opened its own official mall hm.cn, and it has become the only online sales channel in China now.

"When we build online stores, we are also using a set of systems built by headquarters, which is more beneficial to H&M."

Magnus Olsson, general manager of H&M Greater China, once explained, "for example, the international image can be more unified and clearer, and it will also be more rapid when acquiring relevant data, and the trend of analysis will be more rapid."

Judging from the move of Old Navy, the official mall seems to be a more important online channel.

On the one hand, its official mall has a higher degree of freedom and brand recognition in user interface and content design. On the other hand, it can not escape the suspicion of introducing customers to the official mall instead of Tmall flagship store.

According to the world clothing and shoe net, Old Navy official mall and Tmall flagship store are different from some of the selected products. The sales promotion of the official mall is obviously more than that of Tmall flagship store. This means that the official mall will be cheaper than the Tmall flagship store.

For example, in order to celebrate the launch of App, the official store of Old Navy has launched 30 percent off promotional activities and 10 percent off additional sales promotions. During the period of the activity, there were also a lot of merchandise marked "bargain price" and "special price special time special price" in the official mall.

These are not in Tmall stores.

Reporters compared several merchandise sold in Old Navy Tmall store and official mall, and found that the official mall price was significantly lower than Tmall flagship store.

(official website price (above) compared to Tmall flagship store price (below) contrast)

Of course, not everyone is optimistic about the fast fashion brand's official website business.

Many operators of the Shang Dynasty have said they do not recommend that overseas brands build their own B2C websites.

They pointed out that setting up shop on the third party platform is the lowest cost and the fastest way to achieve capital. If we insist on building our own website, we should try small scale first.

"Overseas brands should not be too good to build independent B2C in China."

As far as Old Navy is concerned, its official has not released the specific data of the sales channels in the Chinese market, so it is impossible to compare the sales volume and popularity of its Tmall flagship store and the official mall.

However, according to the feedback from Old Navy fans, "though it is a bit unbelievable, it will download its official mall App". "On weekdays, its official website offers more concessions, and it often has flash shopping".

(Old Navy official website flash sale, that is, time sale).

Obviously, for this brand with "parity" labels, more concession activities are undoubtedly more attractive to the target users than the Tmall flagship store.

More interesting reports, please pay attention to the world clothing shoes and hats net.