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    Foreign Brands Beat Hongkong Market In A Cheap Way

    2010/12/11 13:29:00 93

    Brand Hongkong Market

    Luxury brands abroad are already familiar with the Hongkong market.

    Foreign brands

    Also began to pour into Hongkong.


    In September, the Swedish women's clothing brand Monki opened its first exclusive store outside Europe at Langfang shopping center in Hongkong.

    Next year, Hongkong will usher in the Gap, Forever 21 and American Eagle of the American apparel brands.


    These brands are costumes for the people, keep up with the trend and wear them out.

    Foreign brands such as H&M, Zara, Mango and UNIQLO (Uniqlo) have already branched out in Hongkong.


    Clothing brands that follow the mass line are not new in Hongkong.

    Giordano

    (Giordano) and the two brands of Bossini were founded in the 80s of last century and are now listed companies.

    The two brands are basically basic routes. There are dozens of stores in Hongkong and have expanded to Taiwan, Southeast Asia and Mainland China.

    However, the influx of foreign fast fashion brands has put pressure on Hongkong's local brands. They have to reexamine their market, pricing and expansion strategies.


    Eddie Lau, director of regional consumer research at Citibank (Citibank), said these are two points for local brands. First, competition for retail property, especially in prime locations, will be more intense.

    Second, they have to re-examine their business planning and brand capital.


    Giordano's market value is HK $7 billion 250 million (US $934 million), less than 1/4 of Gap's 10%, American Eagle 's.

    In the scramble for stores, large foreign brands can open higher chips than local competitors and eventually raise the rental market.


    In June, Forever 21 announced that Hongkong flagship store would be opened in Tongluowan, which was originally rented to Giordano by a five storeyed floor.

    The rent paid by Giordano was HK $5 million 500 thousand per month, and the rent of Forever 21 doubled to HK $11 million.


    According to the data provided by Colliers International, the average rental of Hongkong's traditional four shopping districts, Tsim Sha Tsui, Mong Kok, central and Tongluowan, increased by 2.7% in the three quarter of 2010 over the two quarter.

    High power international forecast that the next 12 months will have an increase of 10%.


    Yu Weilin, director of affairs and foreign affairs of Giordano company (William Yue), referring to this change, said, what can we do? We just think that the level of such rent is not explained by economics.

    He said Giordano is now looking for shops in a few relatively remote streets in Tongluowan.


    Giordano and burglung are gradually shifting their focus from Hongkong to the mainland. With the prosperity of the retail industry this year, the profits of both companies have improved, and their profits in the mainland are far higher than in Hongkong.


    In the past three years, Giordano has closed 30 stores in Hongkong, and has opened 341 homes in the mainland over the same period.

    newly opened store

    In the first half of 2010, Giordano's sales in the mainland increased by 15.7% over the same period last year, representing 37% of the total sales so far this year.

    Sales in Hongkong stood at only 18% of total sales.

    Its competitor, burshlung, has opened 182 new stores in the mainland in the past three years.


    Today, some local brands in Hongkong have also launched a more fashionable product mix.

    Yu Weilin said he did not think that brands like H&M and Forever 21 were Giordano's direct competitors (he said we were not as fashionable as they were), but he said Giordano was launching a fashionable BSX brand, whose target audience was mainly young women, and the price was about 20% higher than that of Giordano's mainline products.


    G2000 is the main brand of the main office clothing. Its 2010 autumn dress series presents a more fashionable look, tailored and more fashionable, and styles and accessories are more fashionable.


    Lau said that other brands were marginalized and forced to price competition as a means of competition, resulting in their target segments falling from middle-income groups to low-income groups.


    He said that the fashion industry has always had high risks.

    Local clothing brands must learn how to deal with such risks.

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