Rebranding in the Fashion Industry: A Case Study of GAP Inc.

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BRAND REJUVINATION
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Abstract
This paper conducts an assessment into the place of rebranding in the fashion sector. Firstly, it
looks at the different theories of rebranding. Companies operating in the fashion industry
generally chose to rebrand for different reasons. This paper takes a look at the reasons for
rebranding. The expectation and indeed the purpose sought by a company when it conducts
brand rejuvenations is that it will have a certain effect on its customers. What are those effects?
The paper then presents readers with an analysis of scholarly work published so far on the area
of rebranding and fashion. After this the essay shifts focus to GAP Inc. a retailer of clothes and
accessories which is American owned and headquartered in California but operates worldwide.
The essay presents an evaluation of the attempt by GAP to rebrand by way of introducing a new
logo in October 2010 which failed miserably. The question sought to be answered by the essay is
principally why GAP chose to rebrand, how it went about the process of rebranding, the effect
that this brand rejuvenation had on their customers and why the rebranding attempt ultimately
did not succeed.
Introduction
Rebranding is an activity in marketing where the organization seeks to develop a new perception
which is representative of the position of the brand in the minds of its consumers. Companies
rebrand for a variety of reasons; the principal motivation is always to increase the profit margin.
Other reasons for rebranding are occasioned by ownership changes such as mergers, demergers,
and acquisitions and change of leadership such as entry of a new CEO or managing director.
Rebranding may also be driven by the need for better product differentiation, the need to adjust
to new market changes or internationalization requirements or just the need to develop and

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improve on the brand identity over time. The fashion industry is one of the sectors that must be
dynamic and fast evolving given the fast pace of emerging trends and changes in consumer tastes
and preferences. Rebranding activities result in certain effects in the consumer (rebranding is by
design meant to improve consumer perception like it did for Tommy Hilfiger in November
2017). Sometimes though, rebranding results in a negative perception like it was in the case of
GAP Inc. in its rebranding attempt in 2010. The objective sought by the essay is to understand
the circumstances surrounding the two rebranding actions by GAP Inc. and Tommy Hilfiger and
explain how they were conducted and present its findings on how and why they
failed/succeeded. This essay will also present a multiplicity of theories/ principles of rebranding
in the fashion industry.
Definition of Rebranding
According to Bolhuis, De Jong, & Van den Bosch (2018), rebranding is an undertaking that
involves the change of image of a corporate entity or business organization with regard to one or
all of its products or services by way of a name change or a different advertising strategy.
Rebranding is a marketing strategy in which the organization or business seeks to change the
perception of the organization in the mind of its target consumers. Rebranding, also called brand
rejuvenation is an exercise where the corporate entity seeks to invent a new and differentiated
identity of its products or services with the intention of altering the perception of consumers,
investors, competitors and other stakeholders in the industry (Stuart 2018, p. 97). Brand
rejuvenation is a proceeding involving the change of the corporate image and is conducted in a
variety of ways but commonly happens by way of changing the name of the organization. More
often than not, corporates rebrand by changing the company symbol commonly referred to as
company logo. In other instances, rebranding happens by way of a company changing the design

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of a brand that is already in existence (Miller, Merrilees & Yakimova 2014, p. 271). Such
rejuvenation of the brand normally targets to reposition the organization in the market, move
away from negative connotations or to edge closer to the brand upmarket.
Causes for Rebranding in the Fashion Industry
Mergers, Demergers and Acquisitions
Change of ownership occasioned by mergers, demergers and acquisitions is often one of the key
reasons why corporates rebrand. Like in many other sectors, a brand in the fashion industry may
seek to identify with the change of ownership of the organization as and when it happens
Bolhuis, De Jong, & Van den Bosch (2018, p. 8). The objective in these cases is certainly not
only to be in tandem with the change in ownership but also to meet the legal requirements. A
merger or an acquisition for instance brings new owners to the company; such changes should be
reflected in the brand image. Likewise in the event of a demerger, the company needs to make it
clear that certain entities are no longer part of the organization.
Internationalization
In other instances a company needs to change the branding of its product or service so that it can
be sold and used in international markets. This may be because the current image, branding or
perception of the product limits it to the domestics market. As posited by Lee (2013), it is
possible that using a certain brand name in a new international market may stir up wrong
connotations. In such instances it is prudent for the organization to rebrand.
Market Changes

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For many organizations, changes in the market dynamics force them to rebrand their products
and services. According to Chad (2016), the recent surge in the use of internet technology and
information technology in general has for instance put several businesses under threat pushing
them to reinvent. They have had to reinvent themselves in order to stay relevant in a fast
changing market space.
Image Crises
Sometimes the brand is experiences a bad publicity due to a bad reputation associated with its
brand. Negative brand image can result in negative perception among consumers and in turn
result in a decrease in the volume of sales and profits (Lee 2013, p. 1129). It becomes necessary
that the brand is rejuvenated so that it moves away from the symbol, name or image that is
associated with a bad reputation.
Differentiation
Every business faces competition, as such, the decisions of a rival company may have a direct
impact on the branding of another organization. In a competitive business environment a
business needs to effectively distinguish its brand from those of the competitors (Shetty 2011, p.
56). Sometimes, the brand image of competing companies may seem very similar. This is time
for the brand to differentiate itself and avoid creating confusion among consumers.
Change of Leadership
A change of leadership may result in a brand change; in any case most leadership changes in
companies are made in order to help the company move in a different, better direction.
According to Phang Ing (2012), a new CEO or managing director may come in with a raft of

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organizational changes in pursuit of the new course for the company and he/she may want to
communicate that change through rebranding.
Enhancement of Corporate Identity
In the last decade, corporate identities for several companies was very simple; just a logo, a
palette of basic color and typography. At the time elements such as photography, visual language
and the use of secondary colors had not been invented. The development of the latter tools has
given corporates a new opportunity to improve their brand images by incorporating all the new
elements.
Theories of Rebranding
This essay takes a looks at 3 theoretical approaches that will help marketing teams to
successfully execute their rebranding exercises:
Theory 1; Ensure a balance between the main ideology of the brand while keeping the brand in
tandem with contemporary times.
The import of this theory is that the company should use a blend of stronger brand and
innovation. Strong brand is achieved as a product of the core values of the company while
innovation, through investment and change. Juntunen (2014) submits that strong brands that do
very well over time tend to disregard innovation and unintentionally in the course of time, they
give way to competing brands to begin to beat them in the market. Brand leaders ought to
reinvent the brand from time to time to make sure that there is corporate sustainability.
Theory 2: Some of the core or peripheral elements of the brand should be maintained in order to
serve as an overpass between the previous brand and the current brand.

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Rebranding ought not to totally erase all the elements of the current brand. At all times it is
necessary to keep a bridge between the brand image that is sought after and the existing one. The
vestiges of the former brand image serve to give the product legitimacy in the eyes of the loyal
customers and make it easier for them not to protest the reinvented brand (Luck 2012, p. 52).
Consequently, the rebranding exercise is better if it comes as an incremental change rather than a
radical one.
Theory 3: Good rebranding occasions the need for a brand to satisfy the needs of new market
segments other than the one that is patronizing the brand.
The emergence of new markets formerly untapped by the firm occasionally occurs as a
consequence of the rebranding exercise and is indicative of the dynamism exhibited by the
market. As pointed out by Rebholz (2018), during the process of reinventing the brand, it may be
prudent to penetrate into a new segment of the market whose tastes and preferences may be
different from the original brand or enter a new market altogether.
Effects of rebranding on loyal customers
Rebranding always has an effect on the customers; as a matter of fact, it is targeted at altering the
customers’ perception of the brand. However, it is the effect of brand rejuvenation activities on
the loyal customer that is of concern; loyal customers tend to be the most responsive to brand
changes (Haque 2016, p. 2). One significant impact on the loyal customers is associated with the
risk of losing the brand’s appeal to them. Rebranding involves a change in the well-known name,
symbol or logo of the company, which more often than not enjoys a certain relational or rational
value attached to it. For this reason, the loyal customers might reject the change of name, symbol
or logo as happened with GAP in 2010. Brand changes can cause the loyal customers to lose

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trust in the brand. According to Chad (2016) customers develop trust in specific brands thanks to
the values and meaning that they attach to certain visual images of the products, or a particular
product message. In the event of a rebranding, these information is altered and sometimes the
customer is left confused. They may choose to abandon the brand if they feel that it no longer
represents what the former brand stood for. According to Shetty (2011) the risk of losing the core
is the reason why a rebranding activity should be an incremental process that gives the customers
time to adjust and accept gradual changes to the brand rather, than a radical and sudden change.
In other instances though, brand rejuvenation or rebranding may have a different effect on a
subclass of loyal customers called the committed customers. Committed customers are those
that continue purchasing the brand regardless of the changes. Committed customers are generally
unresponsive to changes in the brand name, symbol or logo.
Literature review
This section will cover different aspects of business branding. It will focus on the the brands,
corporate branding, rebranding processes. It will also highlight different case study companies
that practice rebranding.
Brands
Brands in fashion are core components of the fashion market today. In the wake of changes that
are taking place with regard to consumer tastes, brands are left with no option but to shape up to
the consumers’ needs in order to survive. Any brand is made of a mix of different elements
(Phang Ing 2012, p. 262). From time to time one or all of these elements require to be adjusted in
order to create a new image in the minds of consumers, investors, stakeholders and competitors.
This is what rebranding is about. Brands, unlike products which are processed in manufacturing