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An OppLoans study warns that due to inflation, consumer spending will impact their decisions when buying clothes.
Brand Finance has a very important ranking where it lists the leading brands in clothing for its brand value. Nike is in the lead.
The National Retail Federation measured the reasons why the consumer goes to a physical point of sale such as a clothing store and the demand for experience is key.
gap advance in sale of Old Navy a Axo Groupa company that has been responsible for the operation of major brands in Mexico such as Tommy Hilfiger.
The adjustments in the fashion market have established various benchmarks that prove the importance of the point of sale, such as a study of the National Retail Federation warns, the brand value of the brands of clothingas decanted by a ranking of Brand Finance and the success in which fashion brands will have to aim, given the changes that the consumer is making in their spending, due to inflation, just as a study by OppLoans.
2022 could already be added by Grupo Axo in its timeline, as the date on which it attracted the operation of Old Navy to Mexico, after advancing in its intention to acquire the brand in an operation to which gap agreed and the amount of the operation is unknown.
“If the operation were carried out, it would have little chance of affecting the process of free competition and economic competition (…) Therefore, the notified concentration is authorized,” cites a statement from the Federal Commission of Economic Competition, an agency which widely regulates the acquisition and operation of companies in the country.
This movement is important because it occurs at a time when inflation is changing consumer behavior. A study that OppLoans (loan platform) conducted in the United States this 2022, warns that ordinary purchases are being postponed due to the increase in prices.
A 44 percent assured to OppLoans who has stopped going out to restaurants to eat. The 34 percentwho has postponed spending on clothes and a 26 percent who has stopped regularly buying meat.
It is important because it remembers the operation that gap it did in Spain, where in an alliance with Grupo Calcerán, it opened a store in that market, when the closure of its stores in the rest of the world was international news.
The arrival of the operation Old Navy In Mexican hands it is important, especially for its offer of plus size garments that it has and that has earned it recognition even on social networks.
This success that as a brand has reached Old Navy It reminds us of a very interesting fact and it is the capacity that the fashion market has, especially when its brand value is measured.
within a study of Brand Financewhere brand measured the power of the most valuable brands in clothing and placed to Nike in the lead with more than 33 billion dollars. Brands with a long career in this industry, such as Zara, barely reached a brand value of around 13 billion dollars.
It is important the case of Nikebecause it recently opened a store in South Korea called Nike Style, which stands out because it offers casual and urban design clothes, breaking completely with its traditional scheme of sportswear, but joining a premium category in which companies like Inditex have bet with Massimo Dutti Studio or Gucci, Vuitton Y chanellwith the popularity of his clothes, shoes and bags, due to designs with special collaborations such as the late designer Virgil Abhol.
The fact that Old Navy be a brand that passes into Mexican hands reminds us of a study of the National Retail Federationwhere the majority of consumers surveyed globally, 50 percent of them, explained that they went to a store because they could try and feel a product before buying it.
There are very important challenges today, as we have detailed with a study on the effect of inflation on clothing purchases, but there are also cases of how a brand of gap has opened stores in the midst of adverse scenarios. It will be interesting to see what strategy he follows Old Navy when the acquisition of the brand by Grupo Axo is completed, as this will determine a path to follow in the industry of clothing Mexican.
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