Menswear Brand Masa Marceau: 4 Main Reasons For Entity Closing Shop

Two years ago, the Internet

Martha Marceau opened the first real store in Beijing's high-end business circle.

Just last year, Martha Marceau CEO Sun Hong also announced that Masa Marceau will open up more physical stores in Shanghai, Guangzhou, Shenzhen, Chengdu and other customer focused cities.

However, after just less than two years' time, Marceau's line of store is low key.

In this regard, Martha Marceau told reporters that close down the line shop for four considerations.

Note: the world trade scale was put into operation in 2006. It consists of the north south wing leisure shopping center and two 5A office buildings. It is positioned as a full sensory leisure shopping place with smell, taste and touch. It is equipped with 250 meters long and 30 meters wide sky screen, elegant and luxurious ladder Plaza and semi enclosed walking street. It is a high-end comprehensive fashion consumption center in Beijing CBD area.

The brand is on the world trade scale, and the store rent is about 1000 yuan per square meter.

1. experience shop is difficult to cover wide area users.

Only one shop has been opened, and Mesa, vice president of masa Marceau, told reporters that opening a store is a strategic attempt of the brand.

The location of online brands is different from traditional brands. The location of the store under Marceau's line is "experience" to make up for the lack of user experience online.

From the feedback information of online consumers, although consumers' recognition and recognition of online shopping are increasing year by year, users still have the need to try and experience for high-end clothing products with high price and low standard.

Mesa said that Masa Marceau was very attentively listening to the voice of consumers. After knowing the needs of users, the company decided to set up offline stores for the purpose of improving consumption experience.

"We will use the store to examine the consumer's recognition of Marceau's products and brands.

From the data of more than a year's operation, the store has effectively increased the customer's initial purchase price, "Meishan said.

However, another real problem that Marceau has to face is gradually appearing.

Wide area is an important feature of electronic commerce. As a network brand, Marceau is widely distributed all over the country.

Only an experiential shop in Beijing can only meet the needs of a small number of local users, but it involves a lot of energy in site selection, decoration, merchandising, marketing planning and sales training.

This allows Masa Marceau to reflect on the value of this kind of experience shop. How many stores do we need to experience for the e-commerce brand?

In this regard, insiders give the answer: "

In particular, high-end online brand open shop, in Beijing, Shanghai, Guangzhou, Shenzhen first tier cities, at least 4 places to set up, in order to meet user experience needs.

Masa Marceau CEO Sun Hong told reporters that if we want to cover more users and meet their experience needs, Masa Marceau must continue to open shop: "this will make the originally very light business companies become more and more important.

Road is not going nowhere, but if we lay solid, we will deviate from the strategic direction of the enterprise.

It is reported that Marceau has closed the store in Beijing world trade scale in March 2012.

Sun Hong disclosed that the closure of the entity store is partly due to the fact that its sales growth is far lower than that of e-commerce. It will continue to spend high cost to maintain operation. It will not conform to the strategic direction of "Internet" for enterprises. On the other hand, the main purpose of Marceau's shop is to enhance the consumption experience. However, when the financial strength is still insufficient to support large scale shops in the whole country, the function of this experience is difficult to cover a wide range of consumer groups, thus losing the value of existence.

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Martha Marceau is in the experience store of the world trade scale.

2. online pricing is hard to support under line cost.

This reporter has learned that the rate of increase in traditional clothing brands is 8-15 times higher than that of online clothing brands.

Take Masa Marceau as an example, although positioning in high-end men's clothing brand, but the price increase rate is only 1.5-2.5 times.

Mesa, vice president of masa Marceau, told reporters that although the price of masa Marceau is lower than that of the traditional high-end men's wear brand, it is not careless in the manufacturing process of the product.

Meishan said, "Marceau's men's shirt is 9 stitches per centimeter, and 128 shirts are needed for one shirt.

Martha Marceau's brand slogan is "the most cost-effective men 's", but from online to line, Martha Marceau is consistent in goods and prices, which makes the original price adding rate less than the traditional brand of Martha Marceau, the online competition is facing a very big cost pressure.

According to Mesa, vice president of Martha Marceau, the cost of rent, decoration, property, water and electricity, tax, display and employee salary can account for 60%-70% of sales. The largest proportion is the rent cost, which is about about 1000000 yuan per year.

Massa Marceau also tried to pass the "high-end" brand tonality. The initial decoration cost exceeded 400 thousand yuan, and raised a higher demand for the quality level of salesmen. It not only needed to understand and explain the brand to consumers, but also made image design reports for consumers, so the salaries of their employees were also higher than those of traditional brands.

Mesa told the billion power network: "the world class store has 6 employees, the monthly cost of personnel is about 30000 yuan, almost two times the traditional brand."

Although Sun Hong has emphasized that his experience of more than ten years has made Masa Marceau have an advantage in cost control, there are also people in the industry who joked: "in the world trade scale, to achieve the profit of 10 pieces of traditional men's clothing brand next door, Marceau must sell 100."

Such a comparison may be a bit exaggerated, but the importance of traffic and customer unit price is also evident.

Martha Marceau is stationed in high-end business circles on the premise of high-end positioning, which exacerbates the contradiction between high cost and low price increase rate.

It seems that business and capital are dispersed and it is wise to choose stores.

3. mistake of site selection

Martha Marceau chose to set up a store in Beijing world trade scale. In addition to meeting the consumer's demand for trial experience, he also played an important role in delivering high-end brand positioning.

It is understood that the Masa Marceau store is located in the world trade circle in Beijing belongs to the high-end business district, rents close to Joy City and other shopping malls two times, although the traffic is not as high as the Joy City, but the quality of the customer group is relatively high.

Insiders said, "the high-end business circle of the world trade scale has a very positive role in enhancing the brand image."

Mesa, vice president of masa Marceau, told reporters that in the different stages of brand development, there will be different needs for business circles.

In the past, Marceau, the entity store opened by Martha at the world trade scale, aims to collect consumers' feedback and convey the high-end image of the brand under the background of the industry. In this context, the location of the store, shop decoration, product display and sales personnel image should be matched with the high-end positioning.

Meishan said: "this entity store has promoted the brand promotion in the early stage.

On the other hand, as an experimental field, Marceau can use Mason's shop to inspect the sales of various products and the degree of customer acceptance, and optimize the structure of goods through the voice feedback from consumers.

However, compared with other brands of Marceau and other business circles, the sale price of the world trade scale is between 500-3000 yuan, while the price of masa Marceau is between 300-500 yuan.

In the period of brand growth, the store of the world trade scale has given more consumers a certain degree of recognition to Marceau's high-end positioning. But when the brand entered a stable development period, Marceau would have to consider the contradiction between the passenger flow of the world trade scale and the brand's own pricing needs.

Mesa told reporters: "with the initial location of the physical shop is different, at this stage, we need to let more consumers know, understand and contact Masa Marceau.

In addition, the pricing of Massa Marceau's products also determines that our demand for passenger traffic is more urgent at this stage.

The difference between the price difference between the world trade circle and the Massa Marceau brand and the traffic limit of the high-end business circle make Masa Marceau start to think whether this location and location is still suitable for the needs of Massa Marceau at this stage.

Since site selection and brand demand no longer match, after careful consideration and deliberate, Martha Marceau announced in March 2012 that it would close its only entity store in Beijing's world trade scale.

However, Mesa, vice president of masa Marceau, also revealed the possibility of changing the site to reopen the experience store: "Martha Marceau will not rule out another experience store in the future, and will choose those business circles that are consistent with brand positioning and coincide with the target consumer group."

4. regression online position

Regarding the closing shop, Mesa, vice president of masa Marceau, once stressed to the media that the reason why Masa Marceau closed the experience shop is that this year will focus on the development of the online business.

Martha Marceau CEO Sun Hong told the billion power network that the closure of masa Marceau's physical store was due to the fact that the main purpose of masa Marceau's opening of the shop was to enhance the consumption experience. However, when the financial strength is still insufficient to support the large scale shop laying in the whole country, the function of this experience is difficult to cover a wide range of consumer groups, which has lost the value of existence because of the lack of substantive impetus to online consumption; on the other hand, the expansion of the line also does not conform to the strategic direction of "Internet" for the purpose of the enterprise.

For Massa Marceau, online is still the main business, the role of the entity is to listen to consumer feedback, enhance consumption experience, and assist online sales.

Martha Marceau did not take the line as a channel to do it. Because its online and offline sales were the same stock, the unified pricing strategy also decided that Marceau was still very difficult to take the road under the expansion line at present.

Sun Hong said: "the experience shop of masa Marceau opened in May 2010. The strategic goal and direction of that time was to make consumer experience, establish consumer confidence in Masa Marceau brand, and let consumers know more about Massa Marceau products."

In the past two years, the experience shop of masa Marceau has basically realized "balance of payments and a little profit" in operation, but the growth rate of offline sales is far lower than that of e-commerce. If the profit level is not high, it will be inconsistent with the strategic direction of "Internet" for enterprises to continue to spend high cost and maintain operation.

"If the main business is not competitive and the secondary businesses are not growing, the survival of the enterprises will be very difficult.

So Martha Marceau will focus on improving the competitiveness of the main business, e-commerce.

For the future of the brand online, Mesa, vice president of masa Marceau, told the billion power network that Masa Marceau will not consider being a direct chain in the short term: "doing direct business will cost too much manpower and material resources, and the chain is too long. The warm-up period of opening a store will take at least a year."

However, the integration of the two channels of brand online and offline is a major trend.

At present, with the high marketing cost and the serious homogenization competition, online brands will become a new profit growth point and a new way to acquire new users.

Martha Marceau also declared that in the future, we will not rule out the expansion under the line through the way of joining.

From the present point of view, Internet brand still does not have mature environment and talent advantage.

Although Masa Marceau has introduced talents like Lining and other traditional big work experience, Meishan said that Martha Marceau is still trying online: "if MATHA Marceau has enough advantages to develop second production lines, the financial situation can also carry out the development of second business models, and we will turn the entity into a new profit model rather than just a new sales channel."