Branding Is Not The Same As "Rentals", Semir, And Siror.

In the first half of this year, the performance of clothing brand listed companies is not optimistic.

Volkswagen casual brand Semir apparel's net profit in the first half of 2012 is expected to decline by 35%~45%; the high-end men's clothing has also lowered its performance expectations, and net profit growth is expected to drop from 20%~50% to 0~20%.

The worries of declining performance have begun to permeate the whole business.

Industry.

Reporters found that since last year, the quality of shops rents rose steadily, the domestic apparel brand operation capacity has been greatly tested.

There is even a saying in the industry that "the rising cost of shops will become the last straw to crush the clothing brand."

Such worries may be gradually becoming reality.

In explaining the downgrade of performance, Hinur said that the expansion of the terminal of the company's marketing network was accelerated, and the cost of store leasing, depreciation and salesman's wages increased. Meanwhile, the new marketing network terminal was still in cultivation stage.

Semir clothing also believes that the company's inventory pressure is greater, and the marketing network construction project is in the investment stage.

It is easy to see that the nightmare of terminal rental rents has begun to affect the performance of two listed companies, and this rent alert will be heard throughout the industry.

An insider from Semir costumes explained to reporters that the pressure of rents since last year has already begun to affect corporate profits.

Hinur, a securities worker, also said that the pressure of rent increases on brand is increasing year by year.

According to the latest survey results of China shopping center industry information center, in 2011, 2812 shopping centers in 106 cities nationwide, including premium shops rents increased by 30% over the past year.

"This data is not exaggerated," a person in charge of the Shanghai friendship Department Investment Promotion Department told reporters. The central business district of the first tier cities is constantly upgrading. With the foreign high-end brands gradually entering the first tier cities in China, the domestic quality shops are more scarce.

"At present, domestic quality shops are still in short supply."

Among the top ten top ranking retailers in the second quarter of the Asia Pacific region, 8 high-end retail markets were swept by China's Beijing and Shanghai.

The rent of shopping malls in Wangfujing District of Beijing increased by 100% over the same period last year, reaching 413 dollars per square foot per year.

This is very common.

Lai Fang's monthly data on the first floor of China's high-end shopping malls in the first half of 2011 showed that the high-end shopping malls in Shanghai were rentals high, ranking the first in seven cities of Shanghai, Beijing, Guangzhou, Shenzhen, Tianjin, Hangzhou and Chengdu, with a monthly rent of around 1500 yuan per square meter.

According to DTZ Dead Leung Ban's previous statistical report, in the first quarter of 2012, the rental of shopping centers in Beijing remained stable, and some high-end projects in the core area were still hard to find.

According to the report, Oriental Plaza still maintains the highest rent level in the city, and the first floor rent range is 2600 yuan to 3500 yuan per square meter per month (about 86.7 yuan to 116.7 yuan per day).

Guo Zengli, a researcher at China shopping center industry information center, told reporters that scarce domestic quality shops have become an indisputable fact.

The latest survey results of China Shopping Center Industry Information Center show that only 357 of the 2812 shopping centers belong to high quality resources, which are highly favored by major brands.

"That is to say, only 10% of the shops in China belong to high-quality resources. The retail enterprises are facing a very narrow choice. Good shops are often in short supply, resulting in high quality shops rents."

"The general shopping center rents increased by less than 20% last year, of which two or three cities were higher than the north."

Guo Zengli said.

Take Wuhan's shops as an example. Since 2001, the selling price of the shops has maintained an average annual growth rate of about 20%, especially in 2010, which has increased by 38% over 2009.

"The rising cost of leasing is a national problem."

Guo Zengli believes that "the current price of the three or four tier cities has risen, which is not only affected by the price of the first and second tier cities, but also to a certain extent affected by the domestic macro environment."

At the same time, along with the deterioration of the European economic situation and the downturn of the US economic outlook, China has increasingly become the focus of international fashion and luxury brand business expansion through its relatively stable economic environment and increasing consumption level.

The intensive entry of international brands has increased the demand for high-quality retail properties in cities such as Beijing and Shanghai, especially in the area where flagship stores are available in core business circles.

Although rents have been rising year by year, the high latitude global research still predicts that "in Beijing and Shanghai's core business circle, retailers are facing increasingly fierce competition for top retail areas.

Although the market has larger new supply to enter the market soon, the rent increase will not be too fierce in the short term, but we believe that in the medium term, the rent of Beijing and Shanghai's top business circle still has growth potential.

Under the pressure of rising rental of shops, the story of brands being forced to withdraw from the front-line business circle is constantly being staged.

At the end of 2011, the two stores of the Pacific department store were forced to close in Beijing because of the soaring rent, and Nanjing Road store, one of the only two outlets in Shanghai, was forced to close because of property reasons. Finally, it had to withdraw from the core business circle of Shanghai. Because of the high rental profits, it was hard to keep up with the profits. The flagship store in the core business district of Nanjing was also forced to close.

"This is just the beginning."

A deputy general of Tianhong Department store told the daily economic news that the rental space for high quality business circles is still large, but the pressure capacity of retail enterprises is approaching the limit.

With the expiration of the lease contract, the withdrawal of retail enterprises to the surrounding business circle has become a major trend.

For the powerful retail enterprises, the era that can occupy the city center lots will end.

The Guangzhou friendship annual report shows that the rental fee rate has increased, resulting in a total cost rate of 9.61% last year, up 1.23 percentage points from 2010.

Among them, the rental cost is 2.09% higher than the same period in 2010. The reason is that in the fourth quarter of 2010, the opening of the east city men's pavilion, the state gold shop and the newly opened Foshan store in December 2011 resulted in a substantial increase in rental fees.

The annual report shows that the total growth rate of Guangzhou friendship during the reporting period is up to 42.5%, much higher than the growth rate of income and eroding profits.

Profits can not be won. The rent of shops has become a major trend in the industry.

Guo Zengli told reporters that on the one hand, the rent rose, on the other hand, retailers also had to face fierce competition from their peers and dare not easily pfer the rising rent to consumers. The result would be to compress their profit margins.

Nowadays, in the face of the sharp rise in store rents, retailers can only close their stores in addition to their loss making business and reopen their location.

But the quality of terminal resources is scarce now, and the prospect of re location is not optimistic.

A few years ago, the rent was often in the thousands of dollars. Now, tens of thousands of dollars or even one hundred thousand yuan are used. The rising cost is gradually devouring the profits of the shops. The downtown stores are increasingly becoming the "image project" of losing money and making money.

The Deputy General of Tianhong Department told reporters that according to the present growth rate of the rental of shops, the enterprises that can survive in the high quality business circle only have the banks and high-end brands.

Because the high-end brand business is to face 20% of the consumer group, earn 80% of the added value.

But the general brand is just the opposite. The high rent is very demanding for brand operation capability. According to the extensive profit model, it has been unable to deal with it.