Sneak Preview: The First Gap Europe Collection

U.K. fashion journalists were invited last week to see the first full collection of the European-only Gap line. (Currently only about half of the product is unique.)

It was designed with the help of Marie-Amelie Sauve who is fashion director of French Vogue and creative consultant -- read: muse -- to designer Nicholas Ghesquiere at Balenciaga. Gap's U.K. president, Steve Sunnucks was hired in 2005 with the mission to make Gap competitive with its European counterparts. Sunnucks realized the U.S. product was not going to cut mustard in Europe and put together a 40-person design team in London. From fall the collection will be completely different in Europe than in the U.S., with even more national differences in each European country.

So far the early reports are positive. Harriet Quick, the fashion features director from British Vogue told me, "It hit all the notes of urban Ny-LON cool - with black cotton parkas, trench coats, long cable knits in the season's color - grey, and shirt dresses and flared denim jeans. The influence of Marie Amelie can clearly be seen in the kind of nonchalant chic of the look."

It's also been reported that Phoebe Philo, formerly of Chloe, is consulting for the Gap in Europe. Under its new design director, Chloe has a turn away from the frills that made it so popular under Philo's leadership. Former Chloe fans are being told by magazines like the wildly popular Grazia to look to Gap for those girly looks.

In the U.S., the white shirts done in collaboration with three young designers have reportedly been selling out -- particularly in the small sizes -- thanks to Vogue who put them on the cover of the May issue and on the runway for the Today show last Friday.

Will it be enough to turn the fortunes of Gap Inc. around? I'm not so sure. I still think one of the problems is in the U.S. is the pricing between the three brands -- Banana Republic, Gap, and Old Navy. When sale time hits and you can find a pair of $78 Banana Republic khakis for $40, why would you spend $40 for a pair by the Gap, which of course have been knocked down to $20 -- or the original price of a pair at Old Navy. Fashion innovation, like we're seeing at the European division, is one way to keep customers loyal. It will be interesting to see which division climbs back first.