Investment Difficulty Is The Stumbling Block For The Opening Of Outlets

Most of the outlets in the United States are located in suburbs that are dozens of kilometers away from the city. New York The most famous Woodbury orlies near Manhattan is about 80 kilometers away and takes more than an hour's drive.

Nevertheless, people still enjoy themselves as busy as bees in the area of 70 thousand square meters. Sale In the area, no matter how noble the brand is in the shopping mall, all of them have lowered their status here, and welcomed the customers who came to the market with very popular prices.

Outlets business Where is the value? The latest data from Simon property group, the largest commercial property investment trust in the United States in 2009, showed that the sales volume of its shopping center was 455 dollars per square foot per year, while that of its Chelsea group was $507.

In the wilderness far away from the urban area, it can create higher turnover than the downtown area. Oteri J's charm is evident.

After the outbreak of ordeals, the dystocia occurred.

The first generation of outlets was born in the United States. It originally existed in the form of "factory outlet store", specializing in dealing with factory tail cargo. Later, it gradually formed a large otter shopping center similar to ShoppingMall, and gradually developed into an independent retail format.

In fact, the magic weapon that it wins is nothing more than three points. First, the collection of world brands, pure brand and high quality, which is the primary premise for consumers to choose here. Second, low price advantage, the brand here will generally have 1-6 super low price, so that consumption will flock to it; third, convenient and comfortable shopping atmosphere, Oteri J general location is far away from the urban area, and choose a convenient suburb.

China's orlies has been developing for nearly ten years since the founding of Beijing Yansha group in 2002. According to Guoxin Securities Research Report, there are now nearly 400 large and small Oteri J companies in China, even more than the United States. But in these "foreign products", only Beijing's Yansha orlies and Shanghai Qingpu orlies, the two giants in the South and North, can be called the real Oteri J.

After the flooding of the ole market, its blind pursuit and the "sequelae" of "rough manufacturing" began to appear, and even difficult to fulfill the promise of opening up. A few days ago, orlies in Changping District, Beijing, has begun investment promotion, but the construction time has been postponed to the beginning of next year. Fangshan's "North China outlets" flagship shop, which announced its opening in October, was also embarrassed by the delay of its opening. Yong Wang OLE and Fangshan ole are the biggest two projects in the last wave of "otter" craze, but both have been dragged on until now. Guangdong Foshan Shun Lian international investment and construction of the outlets in May this year, entered the stage of investment, so far, "there are still some uncertainties, not sure when to open." Shun Lian International Planning Deputy Director Ye Huiyu said frankly.

Taiwan large general department store Pacific Group announced in Wuhan that in the space of the 30 thousand square meters of the Hankou Dragon Temple Temple comprehensive commercial body "riverside No.1", we will create the highest grade and the most complete brand outlets in the space, and will open after the Spring Festival in 2010. It has not yet been opened yet and whether it is difficult to attract investment. The orlies project in Nansha, Guangzhou, is far from reliable. At present, it is only a "pre planning" stage. The outlets in Jiangbei District of Ningbo city was recently sealed up by the court and declared bankrupt.

Whatever the reason, the situation is obvious. The developers of Oteri J, China, are beginning to step on the brakes.

Eager for quick success and instant benefit and lack of resources for investment

As a derivative format, the outlets must have a certain amount of retail business to develop. On average, ten stores can supply a discount to a discount store. At present, there are 400 Oteri J shopping centers in the whole country, although after 2004, the international first-line brands began to open shop in China at the rate of about 200 per year. As of the end of December 2009, 44 of the top 44 brands in the world have already opened 1344 stores. But there are still plenty of money to go. Many Ortles want to get these discounts. How to get the support from these big brands has become the biggest problem.

However, this point has not been understood and recognized in China. Therefore, some places do not yet have a shopping center with international first-line brands. They have already begun to plan Oteri J, who owns the international first-line brand. More people blindly think, "as long as the lid is good, people will come." In fact, from the current situation in China, there are not many cities that are suitable for owning international brands.

All the Chelsea group in Asia (now 9) have reached 100% occupancy rate in the opening period, which shows that there is still a big gap between the domestic investment ability and the international advanced level of the Chelsea group.

Wan Wenying, the founder of Yansha orlies, talked about the underlying causes of the difficult phenomenon of domestic outlets. The main reason is that developers lack the support and management of strong resources, lack of advantages in brand investment, fail to get a lot of first-rate international luxury brands, and can not get competitive discounts, so they can not win the market. In Wan Wenying's view, well run orlies backed by large department stores. But this mode also allows orlies to become a place for digestion and disposal of department stores.

Investment in commercial real estate operation in such a key key, but in China, often can not do this. The developer's own investment team may not have mastered the resources of foreign brands, and the timing of investment involvement is too late, which directly causes difficulties in project design and operation. The opening date of many outlets under construction is dragging on. After opening, there are still a large number of vacant shops.

There are many cases of business failure due to insufficient brand investment. For example, when Beijing's vitality Oriental orient started its business, it focused on international brands such as GUCCI, Prada and Dior. Its daily sales volume exceeded 6 million yuan, but consumers soon discovered that their brands were mostly unknown local brands. They simply could not afford to open stores or counters in high-end department stores. The LOGO of GUCCI and Prada only appeared on the sunglasses counters. In fact, only a distributor was introduced.

Although the success rate of the domestic outlets is not high. For the time being, there are fewer than third successful people in Qingpu, Shanghai, except for Beijing's Yansha outlets. And the profits of the orlis mode in China are not as easy as predicted by the report.

In China, the earliest operators of outlets have gone through rough times. Beijing's Lufthansa orris was struggling to win after 5 years of hard work. Shanghai's Bailian Qingpu outlets is once highly praised by the industry for its China's own outlets mode, but its net profit in 2009 is only 38 million 670 thousand yuan.

It can not be denied that Autre's crazy expansion is embarrassed. In addition to the dystocia caused by investment, the strong impact of the rapid development of the e-commerce market and the impassable tariff gap, the domestic consumers want to buy the same goods, as long as they pay twice as much as the foreign consumers, and the lack of talents in the market, all these factors are testing the vitality of the domestic market. But we must see that if there are successful cases, there is possibility of success.