Q: Let’s talk about the jeans, then. Gap used to be known for its staples such as khakis and T-shirts. Now you’re focusing on jeans. Why is that? How do you compete in a marketplace that’s increasingly interested in $300 designer jeans? Last year, Gap opened a creative design office near L.A.’s fashion district in a bid to boost the authenticity of its 1969 jeans brand. Tell me about that move and how it fits into the evolution of Gap’s brand message. A: Jeans are part of our DNA. It’s an amazing product area in that people still love them. Styles and fashion may change, but jeans never go out of style. People just love denim and we’ve got that rich heritage there. Two years ago when we completely redesigned our denim line and started calling it 1969, what we realized is that the market, having recognized denim as a higherend, more aspirational product line, that there had been an opportunity. Our brand’s view is that you should have the quality, the design, the fabrication, the development, all of those great things about premium denim but not at a premium price. The brand has always been about democratization, accessibility. It left a very nice market space for us that was really well-aligned with our brand. That continues today. If you go to L.A. where all the premium jeans are developed and designed, that’s the place that Gap should be. The people in [Gap’s L.A.] office have worked at premium denim companies. Because of our scale and our point of view, we’re able to take the same input, the same beliefs that people deserve these jeans and want these jeans, but give them at a price that’s more accessible. That’s been successful and that formula will continue to be successful. That’s part of the good thing about being as big as Gap. Q: Where do you think the Gap brand should fit in fashionminded consumers’ new high-low approach to fashion?
Q: How are you marrying the marketing message with the merchandise? Your marketing efforts lately all center around that 1969 jeans line, with fold-out print ads in Glamour and Vogue, and online videos filmed inside the L.A. design studio, positioning Gap more as almost an indie, designer-led brand than the mass-market retailer that it has come to be known as. What’s your strategy here? How do you make this message authentic? A: We have to raise the perceived value of the product. We’re not getting enough credit for the product that we have available every single day. The differentiation these days is not just functional, it’s emotional. It’s also about understanding what went into making the product when we share stories of the real designers, the real inspiration, when we tell stories about how the products are made and how they’re conceived, how you care for them.
“If you go to L.A. where all the premium jeans are developed and designed, that’s the place that Gap should be.”
Gap Goes More Global in October, Gap announced the closure of 189 U.S.-based stores as part of its goal to reduce overall square footage in North america by 10% by the end of fiscal year 2012. Meanwhile, as retail sales from outside North america increased 16% in the first half of 2011, the company said that it plans to triple the number of Gap stores in China, from 15 to 45, by the end of 2012. “the combination of our global strategy and formidable growth platform puts us in a strong position to expand our reach into the top 10 apparel markets worldwide,” said Glenn Murphy, chairman and CeO of Gap inc., in a statement. “in North america, we’re taking a number of steps to improve sales in the near term and i’m confident that with a strong management team in place, we’re well-positioned for sustained growth across the business.”
The Fashion of the Times 1969 1970 1971 1972
1973
Debuts “Fall into the Gap” jingle.
1974 1975
Goes public.
1976 1978 1979 1980 1981 1982 1983 1984 1985 1986
Opens first store outside the United States, in London.
Introduces its Individuals of Style campaign, featuring black-and-white photos of celebrities in Gap clothing, the first time the company uses celebrities as models.
Debuts award-winning Gap Khaki campaign, showing models dancing to various music genres, with taglines including Khaki Swing, Khaki Country and Khaki-A-Go-Go.
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
1998 1999 2000 2001 2002
2003 2004 2005
2006 2007 2008
2009 2010 2011
AMA113011_FINAL.indd 17
is founded in San Francisco by Donald and Doris Fisher. Its name is a reference to “the generation gap” and the average cost of a pair of jeans in 1969 is $7.
Continues celebrity-studded strategy with Madonna and Missy Elliott.
(RED)
Launches (RED) campaign, with proceeds benefiting the Global Fund to Fight AIDS, Tuberculosis and Malaria. Introduces Classics Redefined, a marketing campaign featuring black-and-white photos of celebrities including John Mayer, Liev Schreiber, Lucy Liu and Sarah Silverman photographed by Annie Leibovitz.
Returns to holiday television campaigns after a three-year hiatus with its Holiday Cheer campaign.
Unveils new logo and reverts to original logo within one week after negative consumer feedback.
Shifts marketing operations from San Francisco headquarters to New York; hires company’s first global chief marketing officer.
marketingpower.com
A: The kind of people we’re for—and a brand can’t be for everyone—the way they dress is not in terms of uniform. Many people like to buy the perfect 1969 denim and they may match it with a very high-end blazer. This is the way people dress today and we don’t have to own all of that. We don’t have to have the high-priced blazer that goes with the accessibly priced denim. We just have to make sure that our accessibly priced denim is of high enough quality and design and value that it all works together.
This is an important recognition for our brand, that we are part of people’s wardrobes; we don’t have to be 100% of it. It allows us to focus on what we do best, which are things like denim, khakis, and the absolute perfect T-shirt and white Oxford. It’s the foundation of the wardrobe because it’s a foundation of what makes them feel like their most authentic self every day.
17
10/27/11 11:03 AM