After crisis, Gap disembarks in Brazil

With prices of 30% to 35% above those practiced in United States, on average, the fashion retailer Gap Brazil debut at a time when consumers and investors test if, finally, the brand out of the identity crisis of the last decade.
JK Iguatemi Mall store, in São Paulo, which start today, is the first of four that will be opened in the coming months in the country. There will be another unit in São Paulo, one in Rio and another in Porto Alegre.
From the performance of these first stores, the Gap will set your pace of expansion here, said yesterday Stefan Laban, a Senior Vice President at Gap in visit to the country.
According to Laban, the Gap studied hard the Brazilian market in the last two years. And came to the following conclusion: to be competitive on prices in Brazil, would forgo a little margin. "I was impressed with the strength of the local networks in the Brazilian market," he said.
He noted that the Gap did "the account from top to bottom" to define its position in the country. First defined what level I wanted to be and then structured the operation to fit in that level. "A little more expensive than the Spanish Zara" summed up.
Is executive information that, in Brazil, parts of the Gap will cost between 30% and 35% more than in the United States, on average. It is possible, therefore, larger differences.
With 3.1 thousand stores in the world-most of them own-the Gap debuted in Latin America only three years ago. Back and forth, opened 20 units in countries such as Chile, Uruguay, Panama, Colombia, Peru and Mexico, all franchises.
In the Brazilian market, the operation will have similar model. The GEP Group (owner of the trademarks Luigi Bertolli, Cori and Emme) is the franchisee of the network. For now, there will be no local production. Retail products, manufactured mostly in Asia, will arrive in the country by maritime import.
Founded by Doris and Donald Fisher's 44 years in California, the Gap is one of the most traditional brands of clothes in the world. Since the mid-2000, however, the company, which also owns the brands Banana Republic, Old Navy, Piperlime and Athleta, entered a crisis. And only gave signs that can grow back last year.
The network has faced in the last decade questions about their proposal sets. His casual style and colorful (similar to the Hering Brazilian) came to be considered simple enough for a market increasingly interested in cheap clothes, but with enough content ' fashion ', and showcases with constant news.
The company failed in its marketing strategy and launch of collections. Sales began to fall. The icon of the crisis was the abrupt resignation, in 2002, the President Mickey Drexler, considered one of those responsible for spreading the Gap throughout US territory.
From then on the stock never recovered completely. According to compiled by Value Date, in September 2008, year of world crisis, the Gap was worth on the stock exchange at $ 6.7 billion-almost seven times less the value computer at the turn of the Millennium.
The challenges of an increasingly competitive market continued and, in 2011, the Gap announced closing of more than 180 stores.
Sales showed any reaction last year when advanced 7.6% on 2012, to $ 15.65 billion, and profit grew 35.6 percent to $ 1,13 billion. This occurred after four years of net revenue almost stable.
In the stock market, the Gap today is worth $ 19.2 billion, less than half of its historic peak.