Gap eyes expansion opportunities through licensing
Fashion giant Gap has signed a global licensing deal with IMG in a bid to introduce the brand to a broader category of consumer through a move into the lifestyle sector.
IMG will first focus on Gap, Banana Republic and baby and childrenswear brand Janie and Jack, "extending their reach and helping bring to market complementary products". It will also support GapKids and babyGap.
Products under consideration include baby equipment and baby care, home décor and textiles, and furniture. The move will enable Gap to sell the products via its own channels and also explore partnerships with other retailers.
"Gap Inc. operates a portfolio of strong, globally relevant brands that are familiar, trusted and highly marketable across multiple demographics. We are excited to explore new market segments and complementary points of product distribution for Gap, Banana Republic and Janie and Jack in an asset-light way that harnesses their individual strengths,” said Roy Hunt, Head of Gap Inc. Franchise and Strategic Partnerships.
“This partnership with IMG presents a unique opportunity for us to bring our fashion and lifestyle brands to life in new ways for customers around the world, while still maintaining the creative integrity that make each of our brands so distinctive and recognisable in the marketplace,” he added.
IMG president of licensing Bruno Maglione added: “Over the past 50 years, Gap Inc. has created a portfolio of powerful brands that have established themselves firmly in popular culture and with consumers around the world. These brands are household names that we all trust, and have purchased and lived in."
“Distribution channels and consumer purchasing habits have evolved significantly since Gap’s founding, and never more so than in the last few years. As one of the world’s leading fashion retailers, Gap Inc. recognises this omnichannel opportunity and the power of its brands to attract existing and new consumers from more than one angle and via more than one format. We are proud to be partnering with them on this bold new strategic move, which we believe will highlight consumer affection for these brands while showcasing their relevance in everyday life,” Maglione said.
Gap's full range of brands include Old Navy, Gap, Banana Republic, Athleta, Intermix, Janie and Jack, and Hill City. In fiscal year 2019 its global sales hit $16.4 billion.