Less Profitable And Less Innovative &Nbsp; Shanghai'S "Time-Honored Brand" Has Been Evacuated From The Core Business Circle.

Contrary to the international famous brand, the domestic market "

Once known as the "time-honored" brand, such as "three guns", "twin sisters" and "Sheng Xifu", it is now hard to find a prosperous business circle in Shanghai.

With the continuous upgrading of business circles, this situation is becoming more serious.

Not long ago, the Shanghai Municipal People's Political Consultative Conference conducted a survey on this situation, and the findings were not optimistic.

"Daily economic news" reporter learned that, on the one hand, the time-honored brand itself.

Reporters found in the survey results, once become Nanjing Road Commercial Street brand "Lao Fengxiang" also encountered this embarrassment.

Shanghai first eight hundred partners in the process of upgrading the shopping mall, "Lao Fengxiang" moved from the first floor to the six floor, but because Lao Fengxiang thought that the relocation would have a negative impact on the brand, both sides had not agreed to negotiate, Lao Fengxiang finally evacuated the first eight hundred partners.

Lao Fengxiang evacuated the eight hundred companion

Research has just exposed the old Feng Xiang withdrawal from the eight hundred companion, reflecting the majority of the "old brand" embarrassment.

The results of the survey conducted by the Shanghai municipal CPPCC show that some commercial blocks and shopping malls in Shanghai are overemphasizing the introduction of international first-class brands and discriminating against local traditional brands in the process of adjustment and upgrading.

According to Lao Fengxiang's responsible person, the first eight hundred shopping malls in the adjustment of various brand counters, with the introduction of world-class brand as the reason, asked Lao Feng Xiang counters to move from the first floor to the six floor.

In view of the possible negative impact of relocation on sales, "Lao Feng Xiang" failed to negotiate with the first eight hundred partners and withdrew from the shopping mall.

The daily economic news reporter learned from Shanghai's first eight hundred companion that although the first eight hundred friends still have "old Feng Xiang" in operation, the store is the first floor, "old phoenix Xiang" has been relocated after nearly two years after the withdrawal of the eight hundred partners, and all the personnel have been replaced.

The store manager said, "the shop on the first floor has been turned off. I don't know the specific reason. It's a matter of internal decision making."

Shanghai Lao Fengxiang Co., Ltd. was founded in 1848 by the development of the old Fengxiang Silver Tower.

However, the long historical connotation still can not help Lao Feng Xiang to take his place in the first-class business circles in China.

Judging from the layout of Lao Fengxiang, Lao Fengxiang currently owns more than 60 chain silver houses and more than 1000 dealers.

According to the Orient Securities report, it estimated that there were nearly 600 stores in the end of 2011, with a total of more than 2300 outlets. Gold and jewellery accounted for 15% of the total market share in the country.

The profit model of Lao Fengxiang may be his "injury" that is stationed in the first-class business circle in China.

According to the annual report of Lao Fengxiang, the sales revenue of the chain store and the general distributor is about 44% and 50% respectively, while the proportion of self owned Silver Tower accounts for only 6%.

And Lao Fengxiang is developing and upgrading its brand awareness and market share by increasing the speed of 100 new franchisees each year.

However, the annual report shows that whether it is a franchised chain store or a general distributor agent, its model is

At present, Lao Feng Xiang still has few distribution points in the domestic first-class cities.

Compared with Lao Fengxiang, the number of jewellery shops such as Zhou Dafu, Zhou Shengsheng, Jin Jin and other brands sweeping the mainland cities in recent years is getting bigger and bigger.

The director of the Yu Garden mall told the daily economic news that local brands such as "Lao Miao gold" and "Ya Yi Jin shop" also encountered difficulties in entering the prosperous commercial circle when distributing some commercial streets and large shopping malls in Shanghai.

The loss of business circle is the "advertising fee".

With the withdrawal of the "time-honored brand", international brands such as LV, GUCCI, ARMANI, ZARA, GAP and so on have begun to race, but Nanjing road and Huaihailu Road have been heading for the international front-line business circle, but they do not see the shadow of the "time-honored brand" that contains historical culture.

One by one disappeared in the prosperous business circle.

These old brands disappear in the bustling business circle, which is closely related to the soaring commercial rents.

The rise of commercial rents has gradually squeezed out some brands. "The cost of business costs has exceeded the" old brand "brand's affordability.

A commercial real estate research center insiders pointed out that due to the positioning of Shanghai business circle towards the development of the international business circle, the withdrawal of local "old brand" brand has become a trend.

It is almost impossible for local "old brand" to make profits in Nanjing Road business circle.

The industry pointed out that most local brands regard the loss of Nanjing Road business circle as "advertising fee", and more importantly, their publicity role.

"But now the upgrading of business circles has made it difficult for these brands to bear these commercial costs. They should consider a more cost-effective business district at the right time."

Yin Xufei, a real estate researcher at CIC, pointed out: "with Shanghai becoming a global metropolis, its consumption characteristics are changing gradually as the most prosperous Nanjing West Road business circle. At present, there is a tendency to change to high-end luxury goods.

The accelerated pace of eliminating old brand stores and the introduction of international brands has increased the cost of traditional consumer brands, and many of Shanghai's time-honored brands have begun to lose money. In the face of unbearable business costs, they have withdrawn from the market and choose a more cost-effective business district.

The "old brand" brand began to slide when it faced the upgrading of the business circle.

With a large number of famous foreign brands stationed in Shanghai, their brand influence and technological innovation capabilities are dwarfed by international brands. At the same time, in the face of strong international brands, local brands are also inferior in brand marketing and store expansion. All of these lead to the disadvantage of local brands in the competition with international brands, said Yin Xufei.

Old brand innovation is the key

Because of the market operation of the business circle, the survival of the fittest makes the survival environment of the old brand more grim.

However, the withdrawal of the first level business circle is only one aspect of the decline of the time-honored brand.

Xue Jianxiong, a senior analyst at Yi Ju (China), told reporters on "daily economic news" that the influence of many old brands was insufficient.

Yin Xufei also said, "the time-honored brand is a precious national brand in China. However, under the strong impact of the modern market competition, many old brand brands are faced with bottlenecks in capital, talent and technological innovation, and gradually lose the competitiveness that they compete with modern enterprises."

At the same time, the government should also support the development of time-honored brand, and give some financial support to the old brand of shortage of funds.

The reporter learned that the investigation results of the Shanghai municipal CPPCC believe that the Shanghai business circle should be more secure in dealing with the introduction of foreign first-class brands and supporting the development of local brands. "Commercial streets and large shopping malls are marketization operations, but considering the protection of local brand interests and the development environment of local brands, we hope that relevant government departments will strengthen market guidance through various ways such as planning, layout and co-ordination, so as to create a fair market environment for the development of local brands, especially for traditional old brands."

"If local brands can innovate on their products and renew their vitality, we are willing to cooperate with them," Li manager of Shanghai Xujiahui Port Plaza Plaza merchants told reporters.

As one of the front-line business circles in Shanghai, Hong Kong Plaza has gathered a large number of international brands, and now it has extended olive branches to the "old brand" back shoes.