The Development Of Local Brands Is Worrying.

Rents rose

Each big

In order to fight for the market, brands have been stationed in China's first tier cities.

In recent years, the rents of high-end retail outlets in Beijing and Guangzhou are even more alarming.

Since the second quarter of this year, Beijing's retail industry has once again entered an active period.

Beijing's many popular shopping malls, such as Xidan grand joy City, Xinguang Tiandi and other shopping malls, have increased substantially. The average annual rent growth of the core gold business circle in Guangzhou has reached double digits, and the annual growth rate of hot areas has reached over 15%.

Intermediaries even predict that in these hot spots, rents may continue to rise.

Despite the rising rents of high-end shopping malls, there is no stopping the rent.

Constantly open new cabinet steps.

In Beijing, Guangzhou and other first tier cities, there are many top fashion brands from all over the world, some of which even specializes in their first stores or flagship stores in mainland China.

As a result, the increase in market rent has become an opportunity for international brands to expand their market and squeeze out domestic brands.

In addition to a large range of brand adjustments such as Xidan's Joy City and other fashionable shopping centers for young people or the new world of luxury goods, reporters also visited many shopping malls in Beijing, such as Cui Wei Department store and urban and rural department stores, which sell domestic clothing brands.

Relevant marketing department sales manager told reporters that although the domestic clothing brand is still the mainstream of shopping malls, but in recent years, with the increase in rent and operating costs, the proportion of domestic clothing brands has been shrinking year by year, and sales situation is far less than foreign brands.

However, the landlord also has a "ceiling" for raising rent. If more than a lot of commercial forms bear the limit of the rent, it is difficult to continue, so the high prices and rents of shops will not have a "foundation".

In addition, the rise of rent is on the one hand, in recent years, the growth of labor costs, the financial crisis, the strong entry of many foreign brands, and many other background, the development of domestic brands has been subject to many restrictions.

"Clothing enterprises will continue to be difficult in the second half of the year."

Ding Ning, vice president of Guangdong apparel and apparel industry association, said that some of the garment factories in the Pearl River Delta region have moved to Southeast Asia, and there is a trend of gradual expansion.

Now the average wages of the workers in the Pearl River Delta region are 2500 yuan to 3000 yuan / month / person, while in Kampuchea and other places, the wages of workers are between 80 and 110 yuan (500~700 yuan), less than half of the domestic level.

"From the source point of view, the cost of raw materials has increased by 10%. In recent years, the state has emphasized the interests of employees, increased insurance and increased labor costs by 10%.

The impact of the financial crisis on small factories in the south is also very large. Many of them have gone bankrupt, and the cost of placing orders has increased.

The market must ensure profits and the pressure of suppliers is also great.

The sales department manager of peony garden store of Cui Wei Department said.

In recent two years, domestic brands with internal and external troubles have to increase marketing efforts in shopping malls.

Even the high-end brand has increased the frequency of activities.

"In the past, many brands only carried out activities once a year, but this year they can not afford pressure. The depth, number and intensity of marketing activities have increased."

The sales department manager of peony garden store of Cui Wei Department said.

Retreat in order to advance

There are three ways for brands to cooperate with shopping malls: one is to pay a fixed rent in accordance with the area. This is usually a new business, a newly established shopping mall, or a large SHOPPING MALL store form; the second is the way of buckle, that is, the shopping mall will buckle according to a certain proportion according to the location and area of the counter.

Generally speaking, the range of discount points is relatively large, ranging from 10%~30%, mainly to see the relationship between brands and manufacturers. The third way is to guarantee the bottom rent plus the way of deduction, which is generally a relatively strong shopping malls.

No matter how much sales the brand enters, it must first ensure that a certain amount of rent is paid, and then a certain percentage of the discount points will be paid according to the sales volume.

Either way, the game is mainly between shopping malls and brands.

If the shopping mall is strong, the brand will be more buckled and the brand will be stronger, and the discount points will be less.

Industry insiders say that international brand buckles are sometimes lower than local brands.

Although there are certain discrimination against local brands, it is also related to the location of the shopping mall itself.

"While complaining about the rent increase of the landlord, operators should consider the market competitiveness of their products and services first.

In fact, a lot of local brands turn to other secondary business circles, and the profits are good.

Relevant shopping malls sales manager introduces: "like Beijing, there will be a lot of international brands quickly grabbing the market, resulting in the brand market of Beijing has been saturated, not as good as outward port development.

Self owned stores are also a good choice. "

Wu Fenghua, chairman of the jewelry brand TTF, has also expressed his view recently: "because of the advantages of international brands in terms of tax revenue, shopping centres' deduction and long-term contracts, it is better for state-owned brands to avoid this and develop to the mainstream business circles."