Introduction
The Gap, a California-based apparel retailer, was founded in 1969 by Donald Fisher and Doris F. Fisher. With its subsidiaries, it operates more than 3,700 retail stores worldwide. The company has been able to diversify its offerings and stay relevant over the past five decades. In 2020 the company recorded $16 billion in revenue.
The Gap, a California-based apparel retailer, was founded in 1969 by Donald Fisher and Doris F. Fisher. With its subsidiaries, it operates more than 3,700 retail stores worldwide. The company has been able to diversify its offerings and stay relevant over the past five decades. In 2020 the company recorded $16 billion in revenue.
On their website, the Gap describes their business model as three-pronged: “Gap brand seeks to build long-term customer relationships through a strong and consistent brand positioning, differentiated merchandise offering and strategic marketing for all generations of customers.”
The Gap’s business model is three-pronged: “Gap brand seeks to build long-term customer relationships through a strong and consistent brand positioning, differentiated merchandise offering and strategic marketing for all generations of customers.”
The Gap has been around since 1969. It was founded by Don Fisher, Doris F. Fisher, and Donald G. Fisher as an outlet for their secondhand clothes that they collected from friends and family members. For many years now, the company has been focused on offering affordable clothing for men and women—and now kids too!
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Components of the Gap Business Model
In the Gap business model, there are five components that make up the company’s overall strategy: target market, products and services, channels, customer relationships and resources.
Let’s take a look at each of these components in more detail.
- Target Market: The first step to building a successful company is knowing who you want to sell to. A target market is a group of customers who share common characteristics or needs and can be readily identified by their demographic characteristics (like age, gender or income level), psychographic characteristics (what kinds of things they like) or geographic location. For example, Apple appeals to people with disposable income who want advanced technology products; so does Starbucks—it attracts customers with disposable incomes who like coffee shops where they can relax while working on their laptops or smartphones. In contrast, Walmart targets lower-income families looking for bargains on basic household items such as food staples such as milk and bread; Walgreens targets middle-class Americans seeking health care products such as medicines; McDonald’s caters mostly towards children and teenagers who love fast food while Burger King prefers adults looking for more sophisticated dining options
Target Market: Women and men between 18 to 40 years old
According to Gap’s website, the retailer’s target market is women and men between 18 and 40 years old. This means that 64% of their customers are women, while 36% are men.
This trend has been consistent over time: since 2013-14 (Gap’s latest fiscal year), female shoppers have consistently comprised around 60% of sales at Gap Inc., while males have made up roughly 40%.
Products and Services: Women’s and men’s clothing, accessories, personal care products
Gap sells clothing for men, women, and children. It also sells accessories such as handbags, hats, shoes and belts. The company also sells personal care products such as shampoo and conditioner.
Gap focuses on four categories of products:
- Women’s apparel–including jeanswear (Gap’s flagship category), tops/blouses/sweaters/knitwear, outerwear/coats (jeans jackets), dresses/skirts/pantsuits
- Men’s apparel–including denim & shorts; swim trunks; active wear including T-shirts & polos
Channels: Retail stores and online store
You can also choose to sell your products through retail stores. This is a good option if you want to test the market before investing in an online store, or if you just want to reach as many customers as possible.
Gap offers its own line of clothing and accessories under their brand name. They also license their name and logo to other clothing retailers, who can then use them on their own products. This allows Gap Inc., which operates the Gap, Old Navy and Banana Republic chains of retail stores, to reach even more customers with its brands without having to invest in all those individual locations itself!
Customer Relationships: Gap focuses on having a dedicated community in each of its major markets. It hosts fashion shows, award ceremonies honoring employees and community groups, as well as other events to bring people together. In addition to physical locations, it also uses social media to engage with potential customers.
Gap focuses on having a dedicated community in each of its major markets. It hosts fashion shows, award ceremonies honoring employees and community groups, as well as other events to bring people together. In addition to physical locations, it also uses social media to engage with potential customers.
Conclusion
The Gap has been able to stay relevant over the past five decades. The company has diversified its offerings and stayed on top of new trends in the fashion industry.
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