<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Gap to close buying centre here
</TR><!-- headline one : end --><TR>Moving business to HK, India next year may see more than 100 jobs lost </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joyce Teo
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->UNITED States clothing retailer Gap Inc will close its regional apparel buying centre in Singapore early next year, shedding possibly more than 100 jobs.
Gap's Singapore business will be moved to its two other sourcing centres in the region, in Hong Kong and India.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Business as usual at stores
SHOPPERS will still be able to get their hands on Gap, Banana Republic or GapKids/babyGap clothing, even though Gap Inc is closing its sourcing centre here.
The retail stores are run by retailer FJ Benjamin Holdings, and will not be affected by the closure of the sourcing centre, said the retailer.
</TD></TR></TBODY></TABLE>In addition to the jobs lost, the move could potentially affect local garment manufacturers here. This is because a sourcing centre like Gap's is tasked with finding manufacturers and suppliers to produce specific lines of clothing throughout the year. This is separate from Gap stores in Singapore, which are run by retail group FJ Benjamin.
Local manufacturers who pitch for this business will now have to deal with new Gap buyers thousands of kilometres away who are less familiar with Singapore companies and may prefer to deal with local vendors in their own countries.
Still, garment manufacturers here put up a brave front yesterday, saying they foresee little impact on their business, given the globalised nature of the industry. They said they will continue to sell to Gap's sourcing centre in Hong Kong.
Gap's decision to pull out is in line with an industry trend that may put Singapore's garment industry at risk.
In the past two years, major brands Eddie Bauer and Polo Ralph Lauren have moved sourcing centres in Singapore to Hong Kong. Walmart also moved its sourcing centre here to China.
Gap's decision was made after the San Francisco-headquartered clothing giant did a global review of its business. Gap boasts well-known brands such as Gap, Banana Republic and Old Navy, as well as the online shop, Piperlime.
Gap spokesman Bill Chandler in San Francisco said the consolidation will enable the firm to better manage its costs.
'We made the decision based on our business needs today. All retailers are facing challenging economic conditions now but this is something we have been evaluating for a while.
'It was a tough decision that we made only with the knowledge that we can support our vendors,' he added. 'We actively work with the vendors in Singapore and will continue working with them.'
Employees - more than 100 of them - at the sourcing centre in Ngee Ann City along Orchard Road were informed of the closure earlier this week, he said.
'We told them to stay till the end of the year...We will provide transition benefits and outplacement support.'
In addition, Singapore staff can apply for openings at Gap's Hong Kong sourcing centre, he said.
Garment makers linked to Gap took the decision in their stride.
Even though it derives 30 to 40 per cent of its business from Gap, Ocean Sky International's chief executive, Mr Edward Ang, said the move will not impact the firm as it already has an office in Hong Kong. 'Half of our business is coming out of Hong Kong so this may actually help us to streamline our costs,' he said.
In any case, the apparel sourcing industry has become so global that it is no longer location-based, added Mr Ang.
Mr Chris Koh, secretary-general of Textile & Fashion Federation, said the only difference is that local vendors will now have to fly to Hong Kong to meet Gap buyers.
Hong Kong has become a global sourcing hub for garments, largely due to its proximity to mainland China.
For Singapore, it is a loss of yet another major brand. 'Singapore, as a whole, has lost out as a garment sourcing hub in terms of efficiency and tax issues,' said Mr Koh.
The Republic is the second-largest garment sourcing hub in the Asia Pacific, after Hong Kong. It draws support from Indonesia and Malaysia as its production grounds. Singapore-run apparel manufacturers are among the largest suppliers to many famous global brands such as Gap and Nike.
Total business done through these manufacturers has risen from $3.2 billion in 2003 to $5.6 billion last year, representing nearly 2 per cent of the world market worth more than US$200 billion (S$304.5 billion). [email protected]
</TR><!-- headline one : end --><TR>Moving business to HK, India next year may see more than 100 jobs lost </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Joyce Teo
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
ST FILE PHOTO
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->UNITED States clothing retailer Gap Inc will close its regional apparel buying centre in Singapore early next year, shedding possibly more than 100 jobs.
Gap's Singapore business will be moved to its two other sourcing centres in the region, in Hong Kong and India.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>Business as usual at stores
SHOPPERS will still be able to get their hands on Gap, Banana Republic or GapKids/babyGap clothing, even though Gap Inc is closing its sourcing centre here.
The retail stores are run by retailer FJ Benjamin Holdings, and will not be affected by the closure of the sourcing centre, said the retailer.
</TD></TR></TBODY></TABLE>In addition to the jobs lost, the move could potentially affect local garment manufacturers here. This is because a sourcing centre like Gap's is tasked with finding manufacturers and suppliers to produce specific lines of clothing throughout the year. This is separate from Gap stores in Singapore, which are run by retail group FJ Benjamin.
Local manufacturers who pitch for this business will now have to deal with new Gap buyers thousands of kilometres away who are less familiar with Singapore companies and may prefer to deal with local vendors in their own countries.
Still, garment manufacturers here put up a brave front yesterday, saying they foresee little impact on their business, given the globalised nature of the industry. They said they will continue to sell to Gap's sourcing centre in Hong Kong.
Gap's decision to pull out is in line with an industry trend that may put Singapore's garment industry at risk.
In the past two years, major brands Eddie Bauer and Polo Ralph Lauren have moved sourcing centres in Singapore to Hong Kong. Walmart also moved its sourcing centre here to China.
Gap's decision was made after the San Francisco-headquartered clothing giant did a global review of its business. Gap boasts well-known brands such as Gap, Banana Republic and Old Navy, as well as the online shop, Piperlime.
Gap spokesman Bill Chandler in San Francisco said the consolidation will enable the firm to better manage its costs.
'We made the decision based on our business needs today. All retailers are facing challenging economic conditions now but this is something we have been evaluating for a while.
'It was a tough decision that we made only with the knowledge that we can support our vendors,' he added. 'We actively work with the vendors in Singapore and will continue working with them.'
Employees - more than 100 of them - at the sourcing centre in Ngee Ann City along Orchard Road were informed of the closure earlier this week, he said.
'We told them to stay till the end of the year...We will provide transition benefits and outplacement support.'
In addition, Singapore staff can apply for openings at Gap's Hong Kong sourcing centre, he said.
Garment makers linked to Gap took the decision in their stride.
Even though it derives 30 to 40 per cent of its business from Gap, Ocean Sky International's chief executive, Mr Edward Ang, said the move will not impact the firm as it already has an office in Hong Kong. 'Half of our business is coming out of Hong Kong so this may actually help us to streamline our costs,' he said.
In any case, the apparel sourcing industry has become so global that it is no longer location-based, added Mr Ang.
Mr Chris Koh, secretary-general of Textile & Fashion Federation, said the only difference is that local vendors will now have to fly to Hong Kong to meet Gap buyers.
Hong Kong has become a global sourcing hub for garments, largely due to its proximity to mainland China.
For Singapore, it is a loss of yet another major brand. 'Singapore, as a whole, has lost out as a garment sourcing hub in terms of efficiency and tax issues,' said Mr Koh.
The Republic is the second-largest garment sourcing hub in the Asia Pacific, after Hong Kong. It draws support from Indonesia and Malaysia as its production grounds. Singapore-run apparel manufacturers are among the largest suppliers to many famous global brands such as Gap and Nike.
Total business done through these manufacturers has risen from $3.2 billion in 2003 to $5.6 billion last year, representing nearly 2 per cent of the world market worth more than US$200 billion (S$304.5 billion). [email protected]
