Clothing Brand: The Big Shop Mode With High Investment And Low Output Is Becoming An Unknown Number.

Take the big store mode.

Recently, red light has been on the rise frequently.

On the one hand, the rents of the shops in the gold trading area are soaring, and the big shops are facing the embarrassment of high investment and low output. On the other hand, big stores are very helpful for setting up a brand image and providing a more perfect consumption experience.

For local brands, the increasingly popular mode of store has become an unknown number.

Big shop embarrassed

Spacious shops, dazzling goods, consummate consumption experience and chic decoration are all

The feeling that big shops bring to consumers.

The big store mode meets consumers' material needs and caters to the psychological changes of consumers.

As we can see, the scale of brand stores is bigger and bigger. It seems to tell consumers, "here is the personalized pursuit and quality enjoyment you need, and you deserve it".

A few years ago, local brands began to "

"March", but the result is not satisfactory.

At the beginning of this year, the news of enterprises closing large stores was frequently exposed.

Metersbonwe is located in the Me&City flagship store with an area of more than 2000 square meters in Huaihailu Road Business District of Shanghai. It has opened for less than two years, and the lease is not yet full. However, it has to choose to close down because of the rising high rent and the pressure of long-term losses.

Another Nike flagship store in Nanjing West Road, Shanghai, has suffered the same problem.

Businesses have been shutting down big stores, which has been questioned by the industry for a while.

Not only that, reporters visited, but also from the local brand store traffic to see a little helplessness.

Take Xidan, Wangfujing and other gold business circles as an example, the same style local brand stores compare with ZARA, H&M and other international fast fashion stores.

ZARA shop in the fitting room doorway, the payment desk long queue, and the next to the United States, Bosteng flagship store, shopping guide, "leisurely" wandering around the shop.

The reason why local brands are trapped

Why do many consumers like to go shopping at ZARA and other fast fashion brand stores instead of entering the same brand of local brand stores? Actually, the reason they give is very simple, because the products of ZARA and other brands are abundant enough to choose, but local brand stores are considered to be "empty skins" with large stores, few goods and slow updates.

From the update rate of goods, the average turnover time of domestic clothing brands is 185 days, while ZARA and H&M are about 15~50 days.

Even in the United States, which closely follows the pace of ZARA, it takes 70 days to turn around from design, finalization to production.

The response speed of the supply chain determines the sales profit of a company to a certain extent, and the turnover of commodities in the supply chain links means a depreciation.

In addition, taking the display of goods as an example, if the general stores do not have too high requirements on the number of styles, product themes and seriality requirements, but if the shop area reaches several thousand square meters and contains several floors, then the theme and seriality of each floor must have a very distinct distinction, and the goods must also be abundant enough, which puts forward higher requirements for product development.

At present, the domestic consumer market is faced with problems such as insufficient purchasing power and insufficient consumer confidence, which also affects the sales of many brand enterprises.

Experts say that with the rising cost of labor and the prospect of economic development, the expansion of large businesses may mean high risk, high investment and low output. Local clothing brands are probably not the best choice.

Whether an enterprise needs to open a large store should consider from the aspects of financial resources, operation level and consumer groups.

Game of input and output

The location and scale of big stores affect brand image even higher than regional advertising.

Some companies who are committed to big store marketing say with a laugh: "many brands refuse to open stores in prosperous areas, so the brand image is affected, and ultimately they can only fall into the low-end price competition."

However, according to relevant sources, only ZARA and UNIQLO international brands can be easily realized in the prosperous business circle.

Large shops are usually opened in the gold trading area of the second tier cities in China, and the high cost of shops in the gold business circle will naturally reduce the efficiency of the shops.

It has been reported that the price of the shops in the Huaihailu Road business circle has risen to 80 yuan per square meter per day, and more than 2000 square meters of shops are being rented in the area, with a rent of around 50 million yuan per year.

Although faced with the pressure of high rent, many brands still insist on setting up shop in prosperous business circle. This also shows that there is a certain return in this way, especially in brand image building.

From the perspective of direct store network construction, although large scale outlets have low investment return rate and long investment recovery period, they are very helpful in setting up brand image, providing a more perfect consumption experience and enhancing the confidence of neighboring franchisees. Some local brands believe that leverage is ultimately reflected in the growth of sales performance.

In this regard, experts believe that the brand demand and brand image created by big stores is one of the reasons that most brands are willing to invest in the big store mode. However, due to the rapid rise in the price of land rent in China, the pressure on many enterprises to open stores is very large.

If the rental of the shops is too high and the sales volume of the enterprises can not support the high rent, the losses will be much higher than the invisible benefits brought by the big store mode.