The Pain Of Clothing Brands In The Dream Of Big Stores

When

When they shut down the 2000 square meter shop on Huaihai Road in Shanghai, they themselves breathed a sigh of relief.

In fact, many clothing brands set up big stores, not only for the sake of sales, but also to build up the brand image in the prosperous sections, and at the same time enhance the confidence of the two or three tier cities franchisees.

"When franchisees walk on the busiest road, see us.

It will enhance confidence in the brand. "

Metersbonwe insiders told reporters, "our current channel has already sunk to the 5 level market."

Big shop was once a brand's "dream".

In the brand business, the establishment of large stores just 3 years ago has just become a trend.

Nowadays, the establishment of a large store has the dual mission of building brand and channel.

It is understood that nearly 70% of Metersbonwe's sales came from distributors and franchisees, and 30% of its sales came from direct stores.

In Direct stores, the area is usually very large, even reaching the flagship store level.

In flagship stores, "sales and brand value are very important."

These people told reporters.

To what extent is it important?

The company insiders told reporters, "we even need to design separate products for the flagship store in Wangfujing, Beijing, where many products are different from other stores, and they are more high-end. They are responsible for the important role of brand communication."

3 years ago, each brand basically controlled about 400 square meters of area. However, with the abundance of funds and the approaching of the listing plan of enterprises, the wind of "big shops" sprung up. The area where Metersbonwe first opened in Kunming reached 1600 square meters. The area of ZARA shops in Beijing reached 1700 square meters, and a certain overseas brand direct store was introduced into the country for 2000 square meters.

Obviously, opening a store has a higher demand for the brand's financial strength and product line.

In the capital market, the channel problem of clothing enterprises has been regarded as a standard for measuring the value of enterprises by investors, and the opening of large stores is not only a channel to solve direct business, but also lays a brand foundation for joining channels.

Guoxin Securities Research believes that the brand and channel of clothing industry are the scarce resources of the company's competition in the industry, which is the key to the difference of profitability.

Truly representative brand channel companies will be a hot spot for investment in the future.

It has become a popular trend in recent years to open a large store with the dual mission of brand and channel.

Game of input and output

Most brands are strong in the bustling business district of Huaihailu Road and Wangfujing.

It is reported that the price of shops in the shops closed by Metersbonwe has risen to 80 yuan per square meter per day, and the resources of shops are extremely scarce.

More than 2000 square meters of shops will be rented in the area, and the rent will be around 50 million yuan per year.

People familiar with the matter revealed to reporters that "only ZARA and UNIQLO brands can be profitable in big business circles."

"ZARA and UNIQLO directly applied their experience in opening large stores in foreign cities, and quickly adapted to the market in China's first tier cities and realized profits."

The above said, "but almost all Chinese brands can not rely on flagship stores to make profits."

A mature large store standard has sufficient digestion capacity for consumption and has stronger single store performance bearing capacity.

The location and area of big stores have even greater influence on brands than regional advertising.

A manager of fashion brand, Cao manager, often accounts to the outside world: the commercial center's independent store is 8 times the rent per square meter, but the area of office rental is 3 to 5 times the size of the independent store.

The real difference is, "we are in the business center, and tens of thousands of people see it every day. There is no need for too much promotion. Those stores in office buildings need high promotion fees."

Cao manager rejoice in his choice. "Those who are reluctant to open high-end stores in prosperous commercial areas can only rely on advertising and cheap rents. They will not be able to open stores in the high mountain area, so the brand image will be affected, and ultimately they will fall into the low price competition."

Two tier market facing big store challenges

ZARA does not have any disability in the first tier cities, but in China's second tier cities, the region is vast and the process management will be more difficult. The 15 day from design to terminal will face more challenges.

Because of the influence of RMB appreciation and so on, "competition in garment enterprises has changed from export to domestic sales in recent years."

This has become an important feature of the apparel industry's marketing pformation, and one of the key factors affecting domestic sales is the construction of channels and diversified brands.

A trouser company in Henan is worried about the construction of product channels. "Competition in terminal channel construction has been very intense."

He described that the era of OEM has passed, that is, the "weed period" of textile enterprises, and now domestic enterprises are developing their own brand, which is "shrub period".

"Building a good sales channel can quickly improve product sales, and the consumption market in every city is only so large. Whoever can make the best and best of their channels will have the opportunity to promote brand development."

The above sources said, "now, agents with good quality and relatively good resources can act as agents at the same time, each brand wants to get more attention, so brand image is very important."

At the same time, big stores have also become a direct channel.

"Now ZARA brands are also planning to open outlets in second tier cities, but there are few good shops left."