Follow the money

I know we have been focusing heavily on the fashion, luxury and premium markets in China for a couple of weeks now. There are two reasons for that.

1. I spoke on the subject at FIT last week and I will be speaking to international marketers on the subject at Inside the China Marketing Mindset on Wed. the 19th

2. There is a lot to talk about on this subject at this time

Todays announcement from THE GAP, the largest apparel retailer in the US, sums up everything I have been writing, talking and advising on for the last year:

From todays AP wire.

Gap plans store closures in US, while opening new locations in China

By Associated Press, Published: October 13

NEW YORK Gap Inc. plans to close stores in the U.S., while expanding in China.

The struggling retailer, which runs the Gap, Old Navy and Banana Republic chains, detailed plans on Thursday to close 189 locations, or 21 percent of its namesake Gap stores in the U.S., by the end of 2013. At the same time, the largest U.S. clothing chain said it plans to triple the number of Gap stores in China from about 15 by the end of the year to roughly 45 by the end of next year.

If you are a retailer or brand owner and you are not in China yet, what are you waiting for? For the market to be so saturated that you have no chance? To fall so far behind your competition that you wont have to bother? To go out of business chasing zombie customers in the West?