Elbit Trade and Retail Ltd. CEO Arik Ben-Zino is relaxed, as the man behind the signing of the exclusive franchise agreement with Gap Inc. (NYSE: GPS). He is also CEO of the Mango fashion retail chain, and he thinks he got a good deal. He is unconcerned that Gap suffers from fading sex appeal, boring fashion sense, and plummeting sales, including a 7.4% drop in revenue in the first quarter of 2009 compared with the corresponding quarter of 2008.
In an exclusive interview with "Globes" monthly magazine "Firma", Ben-Zino said, "Are Gap Kids and Baby Gap in decline. No." To explain his marketing rationale, he adds, "70% of the clothes in closets of most Israelis are basic brands. When we created focus groups, we found that the concept of basic was deep-rooted, so we thought that a brand that is entirely basic, basic American clothing, would have a bid advantage and be real news. It's possible to find different basic items in all kinds of stores, but as a concentrated general experience - there is no such thing in Israel."
