Gap to Open Stores in India

November 25, 2014

Unlocking Word Meanings

Read the following words/expressions found in today’s article. 

1. outlet /ˈaʊtˌlɛt/ (n.) – a store that sells products of a particular company
Example: Uniqlo has several outlets in the Philippines.

2. populous /ˈpɒp yə ləs/ (adj.) – full of people or having high population
Example: India is one of the most populous countries in the world.

3. undergo /ˌʌndɚˈgoʊ / (v.) – to go through or experience something
Example: The company expects to undergo some changes once the president is replaced.

4. vibrant /ˈvībrənt/ (adj.) – full of energy and excitement
Example: Tourists often visit countries with vibrant cities.

5. venture /ˈven·tʃər/ (v.) – to do something that involves risks
Example: The company plans to venture on a new project.


Read the text below.
American retail company Gap is set to open stores in India by early 2015.

The company plans to open 40 outlets in India next year. The first two will be launched in two of the country’s most populous cities—Mumbai [MUHM-bahy] and Delhi [DEL-ee]. Arvind Lifestyle Brand Limited, a subsidiary of Indian textile company Arvind Limited, will serve as Gap’s local partner.

The branches in India will be an addition to the 231 Gap stores operating in Asia. Gap plans to add 110 more Asian outlets this year in China, Taiwan, and Hong Kong.

This move came as a result of the company’s three percent sales growth in the second quarter of 2014. On the other hand, Gap’s rival clothing brands underwent a decline in sales. Aeropostale [AIR-oh-pohs-teyl] had a 13 percent drop while American Apparel’s sales fell by six percent. 

Gap’s Global President Steve Sunnucks [SUHN-nuhks] said India’s vibrant market is crucial for the company’s global expansion. India’s huge population offers great potential for international companies seeking boost in sales. As of 2014, India has about 1.2 billion citizens, more than half of which are below 25 years old and are actively involved in the fashion trend, said Gap’s Vice President for Global Franchise Ismail Seyis [IS-ma-il SE-yis].

Another American company that will venture in India is online retailer Amazon. The e-commerce firm announced in July that it will invest $2 billion to improve its operations in India. The e-commerce industry in India totaled $13 billion in 2013 but travel agencies still took most of online transactions in the country.

Viewpoint Discussion

Enjoy a discussion with your tutor.  

Discussion A

·         How do you think Gap’s new branches in India will perform?
·         Do you agree that India’s huge population is an asset for companies? Why or why not?

Discussion B

·         What do you look for in a good clothing brand? Kindly explain.
·         Do you prioritize brand names when shopping? Why or why not?

November 25, 2014