Spanish Chinese Businessmen Face Cheap Rivals

In July, the traditional Spanish tourist season and discounted season, the Chinese businessmen engaged in the clothing and footwear industry often made a steady profit, but this year, many Spanish businessmen were locked in the face of the hot weather and the flourishing people, because they met a real rival, Primark, a Multinational Retailing retail store.

The shop is bright and full open mode. All the shops are in the center of the city, 6 European and a pair of cool leather shoes, 7 European men's jeans, 2 Euro one new T-shirt...

For decades, Chinese businessmen accustomed to fighting for their own lives have found that this summer, their business has plummeted because of this bigger, newer and cheaper foreign rival.

To fight back, or to sit still? This July, Madrid street, a bayonet red business battle started.

The big sign of Primark can be seen across the street near the amusement park center near DIAGONAL MAR subway station in Barcelona.

The shops are large and crowded, and bright clothes are displayed on rows of shelves, cheap to the blood price tags inserted in the clothes heap, 6 euros of leather shoes, 7 yuan for Europe.

Pick up a T-shirt and touch it like a stall, rough stitch.

Many local Chinese businessmen told reporters that since the opening of the pnational cheap clothing retail store which originated in Ireland in early this year, their business has been greatly affected: "shopping malls are specially selected to open in downtown or tourist attractions, which are crowded, crowded and crowded. The goods are between 2-10 euros, and are very popular with immigrants from India, Eastern Europe, Latin America and other places in Spain, and they are originally our regular customers."

"I bought a 6 Euro white snakeskin bag in Primark for a month, because when it was raining, I often put the bag on the head, and the handle of the bag quickly turned yellow; he also bought a 1 euro thick cotton pant, off the line and cut off the hair."

The foreign student Miao Miao told reporters, although the quality of Primark's clothes is really very general, but each time passing, she can not resist going in and blood spells.

"Just two days ago, I just went in to have a look, but I couldn't control it. I bought a pile of underwear (underwear), a camouflage trousers, and a black skirt, a black vest, a pink checked shirt, a short sleeved black shirt, and 6 T-shirts, the total price was only 90 euros, less than 900 yuan, too cost-effective!"

Chinese businessman exclaimed: "the price is lower than our price!"

More than just Barcelona, this kind of shopping situation has taken place in every Primark of Spain's major cities in recent months. It became the most frantic cheap clothing retail store in Spain overnight.

"To tell you the truth, Primark's products are really cheap, and their quality is sometimes better than that of Chinese products, so they have robbed most of our business."

Ms. Liu, a saleswoman at a Chinese clothing stall in Barcelona wholesale market, told reporters that even though they greeted them warmly, many guests turned around after the inquiry.

"This foreign clothing store is really fierce, low price is low, it is lower than our wholesale price, such an opponent is really difficult to deal with."

Mr. Zhang, a Chinese businessman who has been engaged in the garment industry in the wholesale market in Barcelona for many years, counted out the accounts: "a pair of leather beach shoes sells for 20-40 euros in the famous brand stores, and at least 8-15 euros in the 100 yuan store opened by the Chinese. The profit has already been far below 1 euros, but at Primark, the retail price is only 6 euros! In front of them, China makes no advantage."

"I can smell a signal clearly that the Spaniards are learning our low price strategy.

Maybe soon they will occupy our living space.

This situation is already imminent, because Spanish clothing has its own advantages over our clothes. "

Mr. Chen, a Chinese businessman who has been doing business in Barcelona for over 10 years, says that the advantage of Chinese goods is the price, and the advantage of Spanish goods is quality.

The advantage of Chinese goods is squeezed by Jerry building, and the advantage of Spanish goods is that even if they are sold cheaper, quality and style will also be guaranteed.

"Another point is that their dress design is more suitable for Spaniards.

If almost anything, they are only 1/4 higher than our price, then we will have a hard time. "

Low price is a mystery, with quantity or bravado?

In the summer of 2010, Primark became almost a common topic of discussion among Chinese businessmen in all garment industries.

Everyone is speculating that the rent in the downtown area is so high that the price of clothes is so low. What does Primark really make money?

"This is like the two Chinese stores operated by Spain in the past. They also saw that the price was cheap and the money was made. The Spaniards followed, and the immigrants from other places followed.

Now, as the economic crisis intensifies, it is already a big trend that the business of commodities is cheaper. It is too normal for a Primark shopping mall to explain nothing.

Mr. Liu, who works in a foreign trade company in Barcelona, analyzes this.

"I visited the mall several times, and found that the chain stores like ZARA, MANGO and other brands were all attracted to customers."

Chen, a Chinese businessman in the wholesale market in Barcelona, told reporters: "in fact, the industry is making money or losing money, only they know it.

There is a speculation that, from the interests of businessmen, Primark may not make money, but the shop has already opened, and it can not be shut down immediately. "

"The reason why Primark's large clothing retail market can blossom quickly is that there is a powerful economic group behind it, so that we can" make the price by quantity ".

Clothing store owner Yao said.

"Actually, this store has a bad reputation.

The British media has reported that its India suppliers are accused of using child labor and cheap illegal migrant workers. In the final analysis, they are also making use of the cheap labor force of the third world countries to reduce costs.

Mr. Zhong Zhong, a Chinese businessman in Valencia, told reporters.

Is it difficult for Chinese businessmen to hurt or to sit still?

Because of the imperfection, there is more suspicion.

Jealousy and disdain, after nearly 3 years of economic crisis, Spanish Chinese businessmen are actually fragile.

In order to survive, Chinese businessmen have come to the price of bayonets.

Susan, who opened the clothing wholesale store in FUENLABRADA warehouse area, said that his shop was very close to the trend of Europe and America, so its business was very good.

When she arrives at the store, someone will come to her shop to get a clear idea of the style, cloth, color and price of her clothes in the name of clothes.

Then imitate these styles, and deliberately lower the price.

In this way, everyone's profit margins are becoming less and less.

Primark, who is entering the war at this juncture, attracts customers by the low price strategy of Chinese businessmen, and creates a new business mode and a struggling Chinese struggle, which has led to the vanishing of profit margins in the Chinese price war.

"Can price competition between Chinese people be allowed? Can Chinese prices be low?"

Primark may have a cheap purchase channel that others do not have. It may be that it is "hurting people" to defeat their competitors.

No matter what, after all, the Chinese did the "first day", and foreigners began to "fifteen '!" Mr. Chung told reporters in Valencia.

When Primark, a struggling Chinese businessman, was confronted with a turbulent and expensive financial industry, did he really have no odds? Mr. Zhang, who runs a clothing chain in Madrid, gave a more beautiful answer.

Mr. Zhang's chain store was named SANNI. In 2007, it opened its first flagship store in the suburbs of Madrid. Now, SANNI has 3 chain stores, and the other two are located in VALLECAS and the GRAN VIA street in the center of the city.

SANNI is located in the VALLECAS store. Interior design, decoration and layout are closer to European style and somewhat similar to ZARA.

In addition to the similar fashion styles in Europe and America, SANNI also has a consistent management mode with these pnational apparel retail giants.

Purchasing from the Spanish local clothing wholesale company, "if we buy goods directly from the mainland, we will be short of timing.

Fashion styles are updating very quickly. Maybe your goods have just come in from China. This style is out of fashion. "

In terms of handling inventory, price reduction is like Primark, which reduces inventory cash flow and increases company cash flow.

"Many Chinese are reluctant to accept this. The backlog of clothing is not willing to sell at a low price. As a result, there are more and more stocks, new products are getting smaller and fewer, and sales are getting narrower."

"Now the Spanish environment is not very good, the government has introduced various policies to investigate Chinese companies and shops, and many Chinese bosses have been fighting alone for a long time without team spirit. Internal competition has long been white hot, and even if they encounter Primark, they even have no strength to fight back to war. They can only support and wait for bankruptcy."

"I used to live in France and found that Jews there were very united. They did not engage in low price competition. Mutual assistance between their peers was a state of alliance," Mr. Zhang told reporters in earnest.

In contrast, the Chinese in Spain are basically rivals. "

"Chain operation" is a model worth trying and practicing.

But this requires greater economic strength and managerial strength, and a collective sense of unity.

If the Chinese can really unite and make the clothing store chain corporation bigger and stronger in the form of joint stock, at that time, our competitors will be ZARA MANGO predators. If the Chinese do not unite, they will still fight alone, engage in small shops, distribute business, and have more than a thousand shops, or they will be crushed by the big companies in Spain, and will eventually be eliminated by the market.

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Give others the same way

Thousands of kilometers away, Shanghai also entered the on sale season when Primark and the Chinese clothing wholesale store were in Spain.

On the first day of opening ZARA, the stores were almost crowded, and the men exclaimed: "Shanghai women are crazy!"

Looking at Shanghai's ZARA, H&M and MANGO, you can imagine Barcelona's Primark, cheap clothes, rough workmanship, reckless tailoring and the latest fashioned style. This may be the common label of all pnational discounted garment retailers, and, of course, the most important thing is cheap.

Chinese people in Spain say that the low price line of Primark is "learn from the other way" and learn Chinese.

In fact, if the success of this group of pnational clothing predators in the whole world is attributed to low prices, it will be impossible to hide the truth.

For example, the white-collar workers in Shanghai prefer to go to ZARA to crush their heads and do not want to go to Cheap Road, though the clothes are almost no difference from the style to the workmanship, and the price is still "small and expensive".

Behind this is a successful business model, which is related to cost control, warehousing management, customer psychology, pricing strategy, brand positioning and so on.

Yes, in the commercial environment of modern society, it seems that Spanish boxers and Primark are able to smell a boxer's resistance against the eight nation allied forces in their bloody battle.

When the small sampan encountered cruisers, not a few words of "unity of one mind" and "invincible weapons" could win.

It requires more patient research, faster learning and smarter tactics.

In this regard, SANNI, a Chinese clothing chain, has made a successful example.

At a time when the RMB exchange rate is rising steadily, instead of sticking to the price war and killing eight hundred of the enemy, one thousand will be worse than the real one. By making use of the advantages of domestic labor and raw materials, we can learn the mature business model of pnational predators and create a chain discounted garment and retail aircraft carrier belonging to the Chinese people.

On the Nanjing road in Shanghai, there are local ME&CITY challenging ZARA and MANGO, and the streets of Spain. We expect more SANNI to compete with Primark face to face.

It is not plagiarism but pcendence.