In recent months, global consumer brands have been steadily divesting their China operations. A rumored deal between Boyu Capital and Starbucks came first, followed by CPE’s acquisition of Burger King’s China business.
This is not a short-term cycle, nor is it limited to the food and beverage sector.
In fashion, Anta has long positioned itself as an active acquirer. In early 2023, Baozun completed its takeover of Gap China, joining a growing group of Chinese companies seeking to revive foreign brands that once dominated the market.
These transactions reflect a shared belief that sustained growth in China increasingly depends on deep localization rather than global scale alone.
For large multinationals, operating across borders often introduces layers of slow and redundant decision-making.
When Baozun took control of Gap China, the company was said to be running more than 40 disconnected operating systems that did not communicate with one another, Gap China CEO Ken Huang told 36Kr. Launching a new product required multiple rounds of overseas approvals, a process that often outlasted the market opportunity itself.
Simplifying that complexity became the first priority. Baozun spent ten months rebuilding business systems to achieve full localization and digital integration.
The company also reset the brand’s operating model. It clarified market positioning, reduced reliance on discount-driven promotions, localized roughly 70% of its supply chain, and accelerated store expansion.
Two years later, the changes are beginning to register. Gap’s China store count has grown from just over 120 to 170. Same-store sales rose 7% year-on-year in the third quarter, according to Baozun’s latest earnings report.
Asked what proved most difficult, Huang laughed. “Everything,” he said.
The turnaround remains at an early stage, but Baozun’s leadership has been clear about its ambition. Chairman Vincent Qiu once likened Gap China to a cup of yuan yang, a colloquial term for a blend of coffee and milk tea. “Globally, Gap represents Western culture, the coffee,” he said. “Baozun is the tea. Mix them together, and you get a perfect yuan yang.”
For Huang, the task is to strike that balance, preserving Gap’s global identity while adapting it to Chinese culture and consumer expectations.
Huang became CEO of Gap China in July 2024 while continuing to serve as CFO of Baozun Brand Management, a subsidiary of its parent company. Before joining Baozun, he spent a decade at Inditex, the parent company of Zara. 36Kr spoke with Huang about Gap’s evolving strategy.
The following transcript has been edited and consolidated for brevity and clarity.
36Kr: Before Baozun’s acquisition, Gap had been closing stores. Since the takeover, the pace of new openings appears to have accelerated.
Ken Huang (KH): When we took over, Gap China had a little over 120 stores. Now we have 170. For a mass market brand, expanding our store footprint helps maintain visibility and brand scale while offsetting natural channel shrinkage from expiring leases.
36Kr: What has been the key lever in turning the business around?
KH: Our core strategy is “local for local, China for China.” That means local teams, local supply chains, and local product development, all guided by a deep understanding of Chinese consumers and rooted in the brand’s DNA.
36Kr: Gap has traditionally been known for American casual classics, more fashionable than Uniqlo but less trend-driven than Zara or Urban Revivo. Has that positioning changed?
KH: Yes. In 2024, we refined our brand positioning in line with Gap’s global changes.
Zara and Urban Revivo are trend-driven and respond quickly to fashion shifts. Uniqlo focuses on functional fabrics. Gap, by contrast, emphasizes timeless design and cultural resonance. Our products are meant to express individuality and emotional connection rather than pure functionality.
36Kr: How do you translate that emotional connection into the consumer experience?
KH: It is not easy. Emotional connection requires a holistic experience, from in-store design to social media engagement.
This year, we built our brand storytelling around music and dance, themes closely tied to Gap’s heritage. When Gap was founded, its stores sold both jeans and vinyl records, and its music-and-dance commercials in the 1990s became cultural touchstones.
We have extended that heritage into our retail spaces. Rather than relying on traditional shelving, we are creating interactive zones organized by lifestyle themes. We will also debut our new “2.5” store design this year to offer a warmer and more comfortable shopping experience.
36Kr: Uniqlo has built strong mindshare through its signature products and collaborations, while Gap’s brand recall appears weaker.
KH: Coverage plays a role. Uniqlo has more than 900 stores in China, while Gap has 170.
That said, Gap’s mindshare lies in categories rather than individual products. Our data shows strong customer attachment to kidswear and sweatshirts. You will find both in almost every Gap store, regardless of size.
We have also seen traction from marketing investments. When we named actor Cheng Yi as our brand ambassador, user-generated content on social platforms surged. Shoppers shared outfit ideas and searched for his looks. On our e-commerce platforms, keyword searches and new customer acquisition both rose significantly.
36Kr: Why did Gap struggle in China previously?
KH: Gap’s global CEO has acknowledged that, for a long time, the company relied on discounting to drive sales. Now the focus has shifted toward cultural resonance and emotional connection. That is the same direction we have taken, independently but with similar thinking.
36Kr: What gives you confidence that you can succeed where Gap fell short in the past?
KH: Many of the earlier challenges stemmed from the inherent inefficiencies of cross-border management. As a local company, Baozun understands the Chinese market and can move quickly.
36Kr: Can you give an example of what has changed?
KH: Systems integration is a clear example. When we took over, Gap China was running more than 40 disconnected systems that did not communicate with one another. Processes were duplicated, and approvals were slow. Baozun used its e-commerce and IT expertise to complete full localization in just ten months.
Now, when our team identifies a product opportunity, we can make decisions and place orders locally within days. Previously, requests had to go through global approvals, often missing the demand window.
36Kr: It has been nearly three years since Baozun took over. What stands out most from that journey?
KH: After acquiring such a large international brand, we had to overhaul everything, from people and products to channels and organizational systems. When other companies ask what the hardest part was, I say “everything.”
Our priorities have evolved over time. In the first phase, we focused on rebuilding core infrastructure. Last year, we aligned brand positioning and product strategy. This year, we are deepening and expanding our retail channels.
36Kr: Foreign brands have long been manufacturing in China. Is there still room to improve the supply chain?
KH: Absolutely. During the first two years, offline expansion was limited, but our e-commerce business continued to grow. For example, we developed a matrix of Douyin accounts to better reach target audiences. When a product gains traction online, local supply chains must respond quickly.
That requires end-to-end agility, from design to manufacturing. By synchronizing supply and demand, we have built faster and more efficient production cycles.
36Kr: Given today’s price-sensitive environment, will your reduced reliance on discounts hold?
KH: Before the acquisition, Gap often relied on deep discounts to clear inventory. We have since returned to a more rational level.
Gap remains a mass market brand. We aim to leverage scale to achieve supply chain efficiencies and pass value to consumers through quality rather than markdowns.
36Kr: Your local supply chain ratio is around 70%, correct?
KH: Yes, and that is a healthy balance. It fluctuates by about 10% depending on seasonal collections. We do not localize for its own sake. Our goal is to offer both locally developed products and selected global pieces that align with the brand’s positioning.
36Kr: After two years of localization, what are the biggest challenges in driving further growth?
KH: I would not frame them as challenges. Our direction is clear. It simply takes time for consumers to feel the change and for results to mature.
36Kr: Has your experience in China influenced Gap globally?
KH: Yes. Our fall 2025 campaign in China performed well and gave the global team confidence. Platforms such as Douyin have become case studies for Gap’s international e-commerce strategy. The global team frequently visits China to study our operations.
We have also received interest from Gap’s other Asia partners, who want to source from our China-developed collections because they better suit regional body types and aesthetics. That creates new opportunities for Gap China’s design team.
36Kr: Beyond financial targets, what expectations does Baozun’s leadership have?
KH: They place strong emphasis on organizational capability, particularly end-to-end execution from design through supply chain, as well as long-term brand influence.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Li Xiaoxia for 36Kr.