Old Brands Can'T Keep Up With Fast Fashion Brand Clothes Selling Cabbage Prices.

Baleno, Giordano, Metersbonwe, Semir, Esprit...

These have been famous after 80's brand name, now has gradually lost light.

People who often stroll along Beijing road will surely find that they do not know when to start.

The flagship store has become a discount field. Once it had been tight for a month, it could not afford to buy a T-shirt for these brands. Now it has dropped to 29 yuan in Chinese cabbage.

Their performance is also reflected in their predicament. These brands are experiencing negative growth.

"They have risen from the beginning of domestic fashion apparel, and have tried to pform, but failed.

With the fast fashion of UNIQLO and H&M entering the domestic market, the possibility that these brands will continue to slide will be greater. The so-called brand names of 2/3 will be eliminated.

A clothing industry insider told reporters.

The famous brand now has 100 yuan and two pieces.

This side offers a discount of up to 90 percent off, and the other side has also launched a summer promotion.

In Beijing Road business circle, Baleno, Giordano, Metersbonwe and other brands, especially T-shirts, have sold cabbage prices.

Reporters at Baleno store saw that a T-shirt costs only 29.9 yuan, and many styles and sizes are available. Mester has 29 yuan T-shirts, and Jordan Road can buy 3 POLO shirts at 99 yuan.

Reporters carefully found that these brands even higher prices, a T-shirt is also 40-50 yuan, such as Jordan Road most T-shirts are 95 yuan two pieces.

"The prices of these brands haven't changed much in the past 10 years, or even cheaper."

Miss Huang, a former white-collar of Baleno fans, told reporters.

However, even if the price is cheap, Miss Huang is not willing to pick these brands again. "I used to feel that I had a face in Baleno, but now this brand is cheaper than the small shop, and the chance of hitting a shirt is high, and I dare not wear it."

Reporters noted that at present, the proportion of T-shirts in the above brands is higher, but the customers who are attracted are no longer the original 80 or younger generation. When interviewed by reporters, it was found that many elderly aunts were shopping. "The clothes here are quite cheap, and they are not fashionable in age, so they are quite fond of buying clothes."

An aunt on Jordan Road told reporters.

In fact, in Beijing Road, the business circle has always been a business competition, and most brands like to open flagship stores here.

Reporters learned that Giordano, Metersbonwe, Semir and other brands are also flagship stores here.

However, these stores as brand faces have now become discount venues.

Reporters at Metersbonwe's store saw that the facade of their shop had been divided into two parts. The discount goods were placed in the most conspicuous place at the door. They were categorized into 39 yuan, 69 yuan and 99 yuan respectively, while the other half did not participate in the new products.

However, reporters walked around the circle and found that in the flagship store on Beijing Road, except for a small number of new products on the first floor, Metersbonwe sold almost all the goods, and most of them were around 50 percent off.

In S&K (life geometry) also encountered the same situation, its women's wear new products are only two shelves, stores are selling discounts elsewhere.

The red discount information is also fluttering in the stores of Baleno and Giordano, and sales promoters shout various promotional slogans, and new products are all in the corner.

Giordano's performance in the first half of the year dropped by 46.94%

The situation of stores is often reflected in the earnings report.

According to the latest China Daily, Baleno, Giordano, Semir and other achievements have declined.

Among them, Semir

(002563) worst performing, its operating income fell 16.54%, net profit fell 43.22%, to 2 billion 511 million yuan and 248 million yuan respectively.

Semir apparel said frankly that the decline in performance was due to the slowdown in the macro-economy and slow growth in clothing demand, coupled with the rapid development of international clothing brands and new brands of domestic clothing, resulting in intensified market competition.

On the other hand, the increase in inventory price and the increase of terminal channel cost and labor cost also increase operating costs.

In addition, the "foreign brands" Giordano and Baleno, which once spread all over the river, are also not comfortable in the domestic market.

The semi annual report disclosed by Giordano (0709.HK) shows that although its overall sales growth has increased, the sales volume in mainland China has dropped by 4% to HK $918 million compared with the same period last year, but it has dropped by 6% compared with the same period last year.

Operating profit fell to HK $78 million, a year-on-year drop of 46.94%. It is the worst performing in the three largest areas of Giordano operation.

The 2012 earnings report of Baleno, S&K, I.P.Zone (Interactive Zone) and other brands, 0321.HK, also showed that business income was HK $13 billion 770 million, an increase of 16% over the same period, but net profit of HK $930 million, down 18%.

De Yongjia said that because China's domestic demand slowed down, plus profit margins were affected by some large competitors' price discounts.

Its gross profit margin has fallen by 2.3% to 44.8%.

Reporters noted that the gross profit margin is the lowest level of the German Yongjia group in the past 5 years, and its operating profit also dropped to HK $157 million, the lowest level in 5 years.

In addition, Esprit, once popular, is no longer in sight. It has announced the closure of 80 loss shops recently, of which 15 are located in the Asia Pacific region.

At present, the brand has been closed in the flagship store in Shanghai.

Related data showed that Esprit's parent company's global profitability declined for three consecutive years, and its share price fell more than 90% in 3 years.

Although its performance is still good, its gross profit margin has dropped by 0.88% in the first half of the year.

At the same time, the inventory of goods is high, reaching 1 billion 758 million yuan, and the price is 47 million 960 thousand yuan.

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Exploration online: online shopping T-shirts are affecting the price system.

The power of online shopping is hitting these retailers.

"Now the price of T-shirts has been reduced to 29 yuan, and the difference between T-shirts is not big, which is the same as anywhere else, which has led to the sale of T-shirts at a low price," he said.

Insiders told reporters, "but from another point of view, brand pricing is too low will also affect the brand reputation, and finally lead to price positioning dilemma."

When reporters visited, they noticed that although fast fashion such as UNIQLO is also strong in T-shirts, they often cooperate with new comic figures who are familiar with the new products. But compared with Baleno, Giordano and other brands, it has much more choices, and even though the price of T-shirts is not high, the average price of clothing is around 200 yuan, such as the price of pants is 249 yuan, and there is no shortage of expensive clothing priced at 599 yuan and 699 yuan.

In fact, Semir is not as fast as fashion in fashion category.

Data show that at present, Semir's products are mainly T-shirts and trousers, which account for 66.93% of the total business revenue.

"These clothing brands all take production as the core, and increase the inventory pressure of agents and distributors in the form of" push ", which is different from the" pull type "mode. The latter is centered on sales, not mass production, and only a few pieces of clothing in the store, so as to strengthen the designer team and keep up with the market trend.

Hu Baogang said.

Offline: fast fashion grabs the market.

Ten years ago, the understanding of fashion was still in the primary stage, and the brands of the American state and Semir were regarded as "famous brands", but the knowledge of fashion has changed dramatically.

Hu Baogang, a senior shoe and garment expert, told reporters that the style that young people like now is no longer just T-shirts, Korean currents, Japanese wind, European and American winds.

The trend that consumers like is constantly and rapidly updating. These brands have not caught up with the trend and changed little.

In contrast, it has entered the Guangzhou market in recent years.

UNIQLO, ZARA and H&M are taking advantage of the strengths of consumers, and have announced that they will accelerate the attack on the domestic market.

Taking UNIQLO as an example, it has only entered the Guangzhou market since 2009. It now has 6 stores, and has 23 stores in Southern China district. Its first store in Beijing road has expanded nearly 1 times the operating area at the end of last year.

Statistics show that China has become the largest overseas market of UNIQLO, and as of August, there were 175 stores in China.

According to its latest quarterly report, the growth of international market sales of UNIQLO 70% and the growth of total profit of 48% almost all come from the Chinese market.

The chairman of Inditex group, a Spanish clothing retailer with ZARA, Massimo Dutti, Bershka and Pull&Bear brands, also said that China has a strong growth opportunity and will increase its investment in China.

The group said in its annual report last year that it will add 150 new stores in China this year and launch the fast fashion ZARA online store in the autumn.