The struggling apparel company, Gap, has recently appointed Richard Dickson as its new CEO. Dickson, who joined the company from toy business Mattel in August, has shed light on the challenges he faced upon his arrival. During a conference organized by The Business of Fashion in the U.K., Dickson emphasized the lack of clarity in Gap’s messaging to consumers. He revealed that the company heavily relied on promotions and discounts, which overshadowed the quality of its products. Displayed behind him on stage was a screenshot of Gap’s website, filled with money-off messages that he described as representative of the company’s approach just a few months ago.
Before joining Gap, Richard Dickson played a vital role in reviving Mattel’s struggling Barbie brand. When he joined in 2014, the doll’s sales were declining rapidly, and it no longer resonated with the target audience. Dickson recognized the need for cultural relevance and introduced different body types and ethnicities for Barbie. This move helped turn the brand around, and the subsequent Barbie movie became an enormous success, grossing over $1.3 billion worldwide. Reflecting on his decision to leave Mattel for Gap, Dickson acknowledged that many people thought he was making a mistake. However, he saw the opportunity for transformation at Gap and considered it a challenge worth pursuing.
The Gap company consists of four brands: Athleta, Old Navy, Banana Republic, and their flagship brand, Gap. Dickson emphasized the importance of differentiation among these brands, stating that every aspect, from copy and font to typography, needs to be communicated with precision. He expressed his vision for the evolution of each brand and emphasized the need to focus on their unique identities. By doing so, Gap can effectively engage customers and ensure that its brands stand out in a crowded market.
In his address, Dickson highlighted the origin story of Gap, which dates back to 1969 when it started as a San Francisco store selling Levi’s, records, and tapes. Initially, the founders intended to name the store “The Generation Gap” to attract different age-groups. However, Doris Fisher, one of the founders, crossed out the word “Generation,” resulting in the store becoming simply “The Gap.” Dickson believes that Gap needs to reconnect with its roots and find new ways to engage in the cultural conversation of today. One hint at the direction Gap’s advertising might take is a recent campaign featuring a woman trying on different denim styles with the tagline, “The jeans. The jeans. The jeans.” According to Dickson, this reflects the company’s intention to take risks and be creative while returning to its origins in denim.
As Gap faces challenges and strives for a turnaround, Richard Dickson’s insights shed light on the company’s path forward. It is clear that Gap needs to refine its messaging and focus on the quality of its products rather than relying heavily on promotions and discounts. Additionally, the differentiation among its brands should be a priority to effectively engage customers and position each brand uniquely. Finally, by reconnecting with its origin story and taking creative risks, Gap can reestablish itself as a relevant player in the apparel industry. With Richard Dickson at the helm, the company has a chance to reinvent itself and embrace a new era of success.
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