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October 31, 2007

Child Labor Strikes Again: Down Goes Gap

Analysis of: Gap Vows Action After Child Labor Report | www.topix.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Andrew Ashbaucher
President, Little Dipper Associates, Inc.
Implications: Gap seems Inspi(red) to maintain relationships with manufacturers that use child labor.

Analysis: While Gap's stores are promoting a "We help the World" message, their relationships with Indian manufacturers are not cooperating.  Child labor issues surface periodically in the apparel industry, and the reaction to those instances goes a long way toward avoiding a crisis. 

Gap has an opportunity to turn a negative into a big positive if they truly focus on changing the face of child labor practices withing their supply chain.  If they take advantage of the opportunity and work within the (red) campaign a giant step toward regaining the top spot in their field could be attained.  If they try to sweep this under the rug and eliminate any risk, they are looking at a potential forest fire, San Diego style! 

It will be interesting to see if Gap truly believes in the (red) campaign or if they are just using it to sell t-shirts.


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