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    400 Oteri J In China Trapped In "Luxury"

    2012/3/27 20:24:00 13

    Oteri J Is In Trouble In Shanghai


    Traveling to the United States, many Chinese travelers will never forget to visit the local outlets and buy some luxuries.


    In China, Oteri J is also scattered everywhere. According to the preliminary statistics, up to 400 or so are increasing.

    Following the early March, the largest operator of the US outlets in the United States -

    Simon Properties

    and

    Bailian Group

    The "extreme orlies" project, which announced its cooperation, landed in Shanghai after Disney. The sea seal share in Guangzhou's Panyu outlets will also open in April this year.


    However, in the 10 years since the first orter's entry into China in 2002, the operation of the outlets has not been very good.

    Whether it is acclimatized or unlearned? Liu Hui, chief consultant of Zhao Yi Department store, told reporters that "from the beginning, the concept of the domestic enterprises for the outlets is not clear, and we must change and jump out of the investment mode."


    Oorlies blossom everywhere


    In March 17th, Hai Ying shares announced that its subsidiary, Guangzhou Hai Ying Yi Cheng Business Co., Ltd. is responsible for the operation of Panyu Hai Yin Yi Cheng shopping center, "outlets" will be officially opened in April 28th.


    This is only one of the many outlets in our country.

    In early March this year, Simon real estate and Bailian Group signed a memorandum of cooperation. The two sides plan to build a joint venture on the west side of the Disney theme park in Pudong, with an area of 300 mu, which is "extreme orlies", with an investment scale of over 1 billion yuan.


    In addition, Zhujiang investment group, friends and shares, Baolong Group and other enterprises have also spared no effort in the construction of the outlets.

    The Pearl River real estate investment and construction project in Qingpu, Shanghai, will be put into operation by the end of the year. At least 8 stores with the name of outlets will compete for the Shanghai business market.


    According to incomplete statistics from shopping center Specialized Committee, more than 200 outlets have been opened in Beijing since the establishment of the first Oteri J in 2002 by the Yansha group in China. Up to 400 discount stores were named after "outlets".

    In the United States, which has developed over 100 years in the development of orter, there are only about 300.


    However, in the process of high-speed replication, the brutality of competition appears to be apparent.


    In 2010, the first orlis shopping plaza in Ningbo was running poorly for some time, and its owner, Ningbo Fortune Plaza Shopping Limited, owed tens of millions of dollars in rent. The developers and some merchants failed to negotiate, and applied for a compulsory "clearance" to the local court.


    In addition, Qingdao's first trial City, Cannes outlets, quietly left the shop after more than a year of operation. Chongqing's Windsor orris closed after a year and a half. The vitality of Beijing East Fourth Ring, the Oriental Orient, is still supported by the Carrefour stores in the store.

    Even the "first crab eating" of Yansha, it was 5 years before it began to make profits.


    However, none of these can extinguish the enthusiasm of enterprises for Oteri J.


    At the beginning of 2011, friends of A Oteri J started to operate a friend, and one year later, in 2011, the annual report of friends and friends mentioned that friend A Oteri J contributed 168 million 500 thousand yuan to the company's main business in 2011.

    Chen Xuewen, a friend of the company, said publicly that "although A Oteri J is a total loss, it is better than the loss of 15 million yuan in management, and it has been profitable since the second half of last year."

    According to public information, Changsha friend A Oteri J's business objective was 400 million yuan in 2012.


    The distress behind "barbaric growth"


    Oteri J's "barbarous growth" in China's market has its own reasons. The main reason is the huge potential of China's luxury market.


    According to McKinsey's 2011 report, sales of luxury goods in China in 2010 amounted to US $12 billion, which is expected to reach US $27 billion by 2015.


    Hai Ying, another city official in Panyu, once said: "the better the Chinese luxury goods are, the better the luxury industry will be in China."

    In order to retain this part of potential consumers, Hai Yin wants to be orlies.


    In addition, Oteri J's drive to the surrounding land prices has also made many developers rush.


    A spokesman for the Guangzhou World Plaza Property Management Limited, who is responsible for the operation of the world's outlets, told the daily economic news reporter that the new orlies are almost done by developers, mainly supporting commercial real estate, driving up the price of land and driving the development of the surrounding real estate.


    The spokesman said that since 2007, after the pformation of Wan Guo Plaza into universal outlets, the rental price has risen from tens of thousands of dollars to hundreds of thousands of yuan, and "it has not been sold".


    Behind all the scenes of orlies in our country, there are also hidden troubles.

    Many outlets are in the name of high-end consumer discounts, but the rapidly expanding storefront can not be enough to support the brand.


    When reporters visited Guangzhou world Oteri J, most of the store brands were

    Nike

    Lining, Kappa and other sports brands, but there are also some brands that journalists are not familiar with.


    Gao Boxuan, a senior researcher at CIC, told reporters that there are flaws in the investment mode of the domestic outlets, which can not guarantee better supply and low price.


    Qiao Yu, general manager of Beijing's new expensive sate Ole, recently told reporters that the main reason for the development of orter in China is mainly the professional retail team and the brand's views on the outlets policy.

    Liu Hui, chief consultant of the department store, said many brands were reluctant to enter, because they were worried about the impact of the image.


    Qiao Yu said: "for example, a brand plan to enter 3~5 home in China, Oteri J, but there are 50 or even more outlets to cooperate, the brand is limited source of goods is difficult to meet, at the same time will also consider the brand image and brand policy issues.

    This requires a professional retail team to understand the needs of the brand.


    Experts: we must jump out of investment mode.


    Guo Zengli, director of China shopping center industry information center, said in an interview with reporters that the real outlets products were directly sold by manufacturers, reducing circulation links.


    Reporters in the above countries, the situation is different.

    Most stores do not know the origin of the goods, except for some shop owners who say, "goods are broken and off season products from other stores."


    The above spokesman said that most of its products were pferred from the regular shop and produced in the factory.

    Tail cargo

    Broken yards, the sale of goods in season shops is basically concentrated in outlets.


    Reporters also found that many domestic outlets are collaborate with brand owners or brand agents to obtain goods, and rarely see factory outlets directly supply.


    However, Qiao Yu said: "the most current partners of Seth outlets are direct brands and less cooperation with agents."


    According to Liu Hui analysis, many brands in China are reluctant to sell goods, unwilling to damage the image and fear the sale of their authentic goods, which makes it difficult for Oteri J to combine with local high-end brands.

    At the same time, the sales of local high-end brands are good, and the choice to enter the outlets is not strong. Foreign mainstream brands are difficult to guarantee the supply of goods in the shops on the first tier market in China, let alone otter.


    Guo Zengli is more willing to use "no match" to show the relationship between the domestic outlets and retailers. He believes that the developers fully organize their suppliers to enter the outlets, this is the normal supply chain, and the more domestic shopping centers are the broken codes of goods and so on.


    Therefore, this has also left a suspicion of "Shanzhai".

    "From the very beginning, domestic enterprises

    Outlet

    The concept is not clear, we must change and jump out of the investment mode.

    Liu Hui said.

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