Don'T Be A Rooster If You Want To Wear A Famous Brand.

In addition to waiting for the discount, you might be able to try another way: to Taobao in orlies.

Orlet is a Chinese literal plation of Outlets in English. It originally means "export, outlet and export". In retail business, it refers specifically to the shopping center consisting of stores that sell over the season, lower shelves and break famous brand goods.

Otles is born in the United States and has a history of more than 100 years, but as a commercial form, it has not been in China for 10 years.

Lu Qiang was one of the people who introduced Oteri J to China earlier.

In 2003, Lu Qiang, who had just returned to China, found that the department store industry in China had flourished. If he went to a shopping center again, he would not have enough strength compared with existing department stores such as Pacific department store and Parkson, so he had to take a differentiated route.

After investigation, Lu Qiang found that "Chinese people like famous brands, but many people can hardly afford to buy famous brands". This has led to the idea of "bringing ism" to those who once worked abroad.

In 2003, Lu Qiang established Foxtown, Shanghai, and opened the first store of more than 2000 square meters in Shanghai World Trade Center. In the following years, Shanghai flew out of the international stores, Nanhui stores and Suzhou stores.

The first year's performance made Lu strong confident, although there was only one store, "in the first year, it sold 1 billion sales."

But today, Lu Qiang's business is not smooth sailing. In this process, he is constantly groping and adjusting.

Localization exploration

"Compared with the overseas outlets, Fu's is a bit out of shape," an industry source believes. Unlike some overseas outlets in the remote suburbs, some of the shops are located on the edge of the city center, and in the brand mix, there are also low-end brands.

Most of the overseas outlets are located in the suburbs, and there are two parallel ways to locate the site: one is the location of the relative center, each is not very large, the area is about 2000 square meters, and the other is about 100 thousand square meters in the outskirts.

At present, there are 3 shops in Shanghai, which are flying island international stores, Nanhui stores and Suzhou stores.

Among them, Fei Zhou International store is not far from downtown Xujiahui, and the other two are located in the suburbs.

Lu Qiang said he was carrying out the "localization" operation.

The lack of per capita car ownership in China makes driving to tens of kilometers away from the suburbs as a minority activity.

In addition, take a Armani pants with a price of more than 3000 yuan, for example, the discount price may be 1000-2000 yuan. "This is a consideration for an ordinary white-collar worker whose income is only a few thousand dollars," Lu Qiang said.

This is also why in the brand mix, the location of Fu Chai's flying island international store.

In fact, Lu Qiang did not fully realize this at the beginning.

In the first year or two, we can see the luxury brand Cartire and Italy famous in Fei Zhou International store.

2 years later, these high-end brands were removed, and all of them were replaced by younger brands. Today, at the flying island international store, most of the brands are common in traditional department stores, such as Nike, ADI, women's shoes brand BELLE, Teenmix, etc., and even Baleno and other low end brands.

At present, shops are being built in Guangxi, Nanning, Beijing and Changzhou, and 5 shops have been signed.

For the layout of Fu's in the whole country, Lu Qiang said he had to regard China as a Europe. "Girls and girls in Shanghai and Harbin like the same color, style and size as the German people are different from the French people." therefore, the combination of products should be "in Rome as the Romans do".

But the layout of the city is faster.

Since 2007, investment institutions such as Sai Fu, IDG, Morgan and Credit Suisse have come into contact with the city of Fu.

But in the process of communication, Lu Qiang found that investors agreed to buy or close.

They believe that if the listing standards go abroad, according to the

Since the end of 2007, the company has closed all its franchises in the past two years.

What is "cheap"?

In 2009, the rare discount rate of high-end brands, including luxury goods, may be a surprise "surprise" brought to people by the financial crisis.

From the beginning of last June, new brands such as Ferragamo, Gucci, Fendi, Dior and Celine have been reduced to varying degrees.

In July, LV, which always advertised "no discount, no increase or no drop", also started its first price cut after entering the mainland of China. In 2009, discount sales activities in various department stores were also in waves.

The discount is the survival code of otlis, and the discount in the department store has a direct impact on Oteri J.

Lu Qiang said that in 2009, the growth of the rich guests was less than 30%, and the growth rate in the previous years was 40%-50%. "The economic crisis has a little impact."

On the other hand, they were discounted by the discount department stores and the price advantage was reduced.

Statistics show that the number of outlets in China has exceeded 200.

How can we take into account "cheap" and "profit" in such a market?

Buyers are greedy. They always want to have enough brand choices and low discount, especially for outlets.

"Compared to the regular department stores, we are on sale all year round," Lu Qiang said. Compared with other outlets, brand integration capability is his advantage.

According to his statement, there are more than 200 brands in the city at present, 98% of which are directly co operated with the brands in China or in the Asia Pacific region or even in Europe and the United States, and 2% are provided by the distributors. In the 98% brands, some of them are direct selling outlets which are set up by the brand manufacturers in the rich shops. Among them, 9 brands include the top fashion Escada, and the Diesel is the exclusive agent in the Chinese region or even the Asia Pacific region, with a duration of 10 years and 15 years.

"Other orlies want to import these brands in China, only look for me."

Lu Qiang said.

In addition, the shareholders' background also brought him some chips.

At the beginning of 2008, he announced that he had won about $40 million in investment in Softbank. Lu Qiang looked at the LP behind Sai Fu's investment fund.

According to him, these LP include the Li Jiacheng fund, the well-known brand Esprit's Si Jie Global Holdings, Yongxin group, LVMH and so on, they can bring Esprit and international to the rich guest.

Lu Qiang believes that these not only enrich the brand of the brand, especially the number of front-line brands, but also have more room for discount than the direct orders from brand manufacturers.

In the downtown area, the discount rate is generally around 50 percent off, the highest can be sold to 30 percent off; in the suburbs, the discount rate is not less than 50 percent off, or even 1-2.

About 30% of the goods sold in the city are some brands that are specially produced for the outlets, "all full color full code new products, and are not sold in the regular department stores," Lu Qiang said.

40% of the goods in the city are the brand's over season inventory, which may be broken or broken, and the remaining 30% are the end products of the brand.

Online + offline retail kingdom?

In 2009, the turnover of the company was close to 3 billion yuan. Lu Qiang hoped that the Internet could bring him more performance than the entity store.

In February this year, the company launched B2C business, "the network does not require rent, it is an infinitely great thing".

At the beginning of its establishment, Lu said that it would introduce more famous brands abroad to create a top brand discount, home appliances discount,

In June 2007, Babyone established a strategic alliance with the German first baby supermarket brand, introducing the baby brand to its outlets.

"We will introduce cosmetics brand soon," Lu Qiang said. "The brand is not enough and the category is not complete. It is the weakness of the domestic outlets, and it is also the place where we need to constantly improve.

At present, apart from Lu strong, such as the outlets operators, the department stores all over the country even

In 2002, Yansha general store launched the Beijing outlets shopping center, and built another one in Harbin in 2006. In 2006, Bailian Group and Hongkong dragon warehouse group jointly invested in Shanghai outlets in Shanghai. In July 2009, spring stores opened Seth outlets in Beijing.

In July 2009, the Ningbo orter project, which was jointly developed by Shanshan Group, Japan Mitsui realty and Itochu commerce, was officially launched.

Just after the listing in the HKEx, spring department stores said that after listing, some of the funds will be used to vigorously develop the outlets. This business is also considered to be an important source of profits for future department stores in spring.

According to statistics, there are more than four hundred outlets in the United States and more than 100 in Europe.

Lu Qiang feels that China's huge market can accommodate more Oteri J.

But it is worth being warned by orlis that the surge in volume may also lead to homogenization.