China is the fastest growing consumer market in the world today. They have had consistent double digit growth over the years and have managed to counter the recessionary pressures through government investments in infrastructure and the resultant growth in their domestic markets and demand. All the global brands and retailers are entering China to cash in on the growing demand.
Gap Inc., one of America’s best known apparel brands has joined the Chinese rush and is opening its flagship store next week. They already have plans for three more large outlets in Shanghai and Beijing, two of China’s wealthiest cities. The company also expects to eventually add its other brands, like Old Navy and Banana Republic. Gap is the latest addition to the long list of global brands with significant presence in China. The investment boom to counter the economic downturn has resulted in scores of new upscale malls and shopping districts.
John Ermatinger, Gap’s President for the Asia Pacific region talked about the target of 25% from international sales the company has set for itself. China will play an important role if the company achieves the target. The retail sales in China grew by 15% last year and is expected to outgrow America in the coming decade.