Gap to Be First American Retailer to Enter Myanmar Market

sourcingjournalonline.com https://www .sourcingjournalonline.com/gap- first-american-retailer-ent er-myanmar/ Tara Donaldson Gap to Be First American Retailer to Enter Myanmar Market Gap Inc. announced plans to source garments in Myanmar and will be the first American retailer to do so since the country began transitioning to a democracy three years ago, according to The Associated Press. Two factories in Yangon, the country’s commercial capital, are said to be producing products for the company’s Old Navy and Banana Republic brands, and the goods are expected to be available for sale in the U.S. this June. U.S. and European retailers have only recently begun establishing a presence in Myanmar owed to the easing of sanctions imposed on the country during its military rule. The country’s abundant and affordable labor force is a draw for international companies. Debbie Mesloh, senior director of government and public affairs at Gap, said, “Certainly we know that there are challenges within the country and significant hurdles, [but] working with our vendors we made a commitment. It is in our best interest to see the industry grow up in a positive way,” The Myanmar Times reported. According to The Myanmar T imes, while Gap is not investing directly in the country but s ourcing from South Korean- owned factories, the retailer’s move is still expected to lead the charge in revamping Myanmar’s manufacturing industry. Mesloh said that Gap’s Old Navy and Banana Republic orders have already led to 700 new jobs in the sector. The garment sector was one of Myanmar’s fastest growing at its peak in the 90s and early 2000s, with exports reaching over $800 million in 2001, but growing human rights concerns put American brands under pressure, several fled and exports faltered. Although Gap’s announcement is expected to spark increased interest in Myanmar as a sourcing locale, c oncerns

Gap to Be First American Retailer to Enter Myanmar Market

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