Economic Times: October, 2016
New Delhi: US apparel retailer Gap Inc will sell its products online in India exclusively on Arvind Group’s fashion portal NNNow.com. Gap’s online sales in India will commence ahead of Diwali, Kulin Lalbhai, executive director at Arvind, told ET. The company had opened its first store in the country in May last year. The online launch will make Gap products available beyond the metros and tier I cities, giving the company an edge over rivals Zara and H&M, which have no digital presence in India yet.
“The digital launch will be a key growth plank for Gap in India and will increase the revenue by up to 15%, as the brand will now have access to shoppers in tier II and tier III cities also,” Lalbhai said. Zara and H&M are focusing on expanding their offline retail presence. “Online shopping is a natural expansion for our business. At H&M, we see a great potential for future growth in the online space but prefer to focus on retail stores for the moment,” said an H&M spokesperson. Zara did not respond to ET’s email query seeking details of its online plan for India.
“The digital launch will definitely give Gap an edge over Zara and H&M. The self-controlled platform NNNow.com will help us in building the brand and not just sell because of discounting. The prices will be consistent across the site and stores,” said J Suresh, managing director of Arvind Retail, which holds the licence to sell Gap products in India. Gap has refrained from launching on other ecommerce portals to avoid sales on the back of deep discounting, a key feature for these sites.