The Rise And Fall Of China'S Shoes And Clothing Brand Overseas Market

At present, China's clothing enterprises are still in the initial stage of "going out". We must imagine that CHANEL, GUCCI and other international brands will import technology, brand and culture into the world. Our clothing enterprises have a long way to go.

Many domestic brands have spared no effort in this road. The four international fashion week show shows their business in the most prosperous business circles overseas. They try to prove their existence on the international stage in their own different ways.

The "farewell" of the pioneers

All along, the pace of Chinese enterprises' overseas exploration has not stopped. Li Ning Co is a pioneer.

Two years ago, Li Ning Co opened a flagship store in the United States and opened it in the city of Nike headquarters.

But it was finally overburdened by internal and external troubles and was closed in February this year.

After that, Lining, a Spanish authorized businessman, went bankrupt. In early September, Li Ning Co branch of Tsim Sha Tsui branch in Hongkong was closed, and the branch was Li Ning Co.

The only branch.

The repeated setbacks of Li Ning Co in overseas markets make it impossible to stop the strategy of shaping the international brand image.

Lining gave the corresponding explanation that it will focus on the domestic market in the future. For overseas markets, the company will explore in a way that is controllable in risk and controllable in cost.

The cost of bad stores and high inventories is the main reason for closing stores.

When the Li Ning Co semi annual report was released, the company executed its vice chairman.

It was revealed that in order to save costs, Li Ning Co has closed 1200 stores in the first half of this year, and the proportion of Customs stores has reached 15%.

According to the insiders, according to the current situation of Li Ning Co, the mainland market is still busy, closing the Hongkong stores and shrinking the international market front.

Although it will affect the international image of Lining brand, from a practical perspective, it can reduce the bleeding point of the company.

When Hongkong stores opened in 2009, Zhang Zhiyong, who was then Li Ning Co CEO, regarded it as an international bridgehead, laying the groundwork for brand internationalization.

According to Zhang Zhiyong's plan at that time, by the year 2018, Lining will become one of the five major sports brands in the world.

But by 2011, the proportion of Li Ning Co's overseas revenue in total revenue was only 1.9%, which is far from the established plan.

With the bankruptcy of Spanish authorized dealers and the closure of Hongkong stores, the internationalization of Li Ning Co may not be achieved in the short term.

Followers

It seems that nothing can stop the determination of local brands to fight overseas markets.

Not long ago, during the London Olympics, Boston stood on the most expensive South Morton street in London as the first stop in developing overseas business.

Bosideng spent 300 million yuan to buy this 6 storey building permanent property rights, decoration costs 5 million pounds, these "feat" but caused public criticism.

PEAK CEO Xu Zhihua took the team to the United States in February this year. This trip is the ribbon cutting for PEAK's opening in the branch store in Hollywood.

At the end of last year, PEAK basketball theme store was opened in Losangeles. This is PEAK's second store in the United States, with an area of 2800 square feet.

The creation of "made in China" and "made in China" in the international arena has also promoted the creation of independent brands and national creation to the international high-end stage.

At present, Da Yang creates the world's "tailor-made" high-end business as the killer brand of its own brand to overseas. In the United States, it already owns hundreds of TBYTRANDS suits, and more than 400 cooperative stores in European countries.

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If overseas stores are not planned, it will be the first step for enterprises to test the overseas market.

This year, Yiwen London walk show, Wu Qingqing two degrees set foot on the New York fashion week, Liu Fang bloom.

All this shows that China's brand standing on the international stage is only a matter of time.

We must first secure the outside world.

The reason why brands choose overseas markets is to display their brand image, expand their business and seek new profit growth points.

However, the channel mode of European and American countries is quite different from that of China. In the highly competitive international market, the cost of opening stores is high, and it is difficult to realize the pressure of joining the chain and dispersed capital. These are all great obstacles.

In addition, when financing channels and capabilities are limited, the brand may be faced with the situation of "not being able to get rid of a teacher, but to die first".

So, how do we see the dilemma of brand internationalization?

While shrinking internationally, the Li Ning Co has identified a strategy of "self rescue".

The first stage is to improve channel inventory and enhance channel profitability; the second stage will focus on improving the supply chain, marketing and product planning models of the group, including product development and consumer experience; the third stage will improve profit structure and channel, retail efficiency, and cash and return on investment.

Wang Quangeng, vice president of Metersbonwe group, said that the United States has been committed to expanding its overseas business. However, due to the success of overseas market expansion and fewer failures in recent years, the internationalization of brands should be done according to their capabilities to avoid indigestion.

The most important thing is to develop a management elite team that is familiar with overseas markets, has international brand operation management experience and is familiar with its own corporate culture.

Another phenomenon is that international brands have seized the Chinese market in the shadow of the European debt crisis, and channel sinking has spread to China's three or four tier cities.

Zhou Yan, general manager of Dalian Si fan clothing and Accessories Co., Ltd. believes that the war of internationalization has hit the door, so internationalization is not what we want to do, but how we do it.

The real internationalization is not to say that we should go out, but that we should first do our business well and do our own things well in the mainland.

Internationalization is not just going out or coming in, but really achieving internationalization in management, design and supply chain.

The road to internationalization is plain or bumpy. We need to consider multiple factors, but surely we should first build strong brands and then establish business empire.

It is the most important thing to practise good internal skills. From fast fashion brand ZARA to luxury brand LV, success in China depends on its consistency of high quality production and meticulous management.