Luxury Brand Armani Withdraws From The Bund'S Disgrace.

< p > with the expiration of the 8 to 10 years' lease, some brands began to reconsider the value of the Bund.

Some of the brands choose to withdraw from the sales performance that is not commensurate with the high rent.

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< p > Giorgio Armani (Giorgio Armani), which has been operating in the Bund No. 3 for 10 years, is closing shop early this year.

The empty windows almost forget people's scenery.

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< p > the Bund is located on the Bank of Huangpu River in the center of Shanghai. The 26 building exhibition groups along the Yangtze River are a shadow of Shanghai in the past century.

The Bund 3, which has a 97 year history, is very famous.

Its predecessor was the British advantageous bank, which was wholly owned by Giti group of Singapore.

The Bund 3 is now famous for its famous American architecture "a target=" _blank "href=" http://www.91se91.com/ "designer" /a "Michael Graves (Michael Graves). In 2004, it was pformed into a high-end shopping and consumption place based on the theme of art and culture, with a cost of $35 million. It also opened up a modern version of the Bund's luxury.

The reconstructed building was renamed "the Bund No. 3" by "No. 3 Dongyi Road, Zhongshan". Later, a "the Bund" was derived.

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< p > 2003, Armani chose the Bund No. 3 as the first store address to enter China.

At that time, it gained a total area of 1100 square meters.

In the years after 2004, with the constant release of China's luxury consumption energy, international brands began to favor the Chinese market.

There are many Gothic, Rome, Baroque and other types of architecture in the world. These European styles are in line with the cultural qualities sought by European brands. The Bund has become a treasure place for luxury brands to compete for.

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< p > operation House of Three of the Bund No. 3 is mainly self operated in its business mode, with only a small number of shops outside.

Alan Heppborn, executive director of Alan Hepburn, recalled that he had found many brands of his own at that time, but he could not make room for them.

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The charm and cruelty of "P > the Bund is also the same. At that time, having a place in the Bund became a symbol of brand identity.

"When you want to enter the Bund, you can't afford rent."

Hong Shuhui, director of the service department of Gao Li international shop, told Global Entrepreneur.

As a commercial real estate service company, Gao Li was a bridge for many investors to invest in the Bund 3, the Bund 18 and the Bund 22.

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At P, the most luxurious fashion brand in the world can be seen everywhere in the Bund.

Cartire (Cartier), Zegna (Ermenegildo Zegna), Patek Philippe (Patek Philippe) and Boucheron (Boucheron) entered the Bund No. 18, and Du Gabbana (Dolce&Gabbana) flagship store supported the front of the Bund 6.

Busy is not just luxury goods, high-end restaurants and high-end leisure also influx.

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< p > like Champs Elysees street in Paris and Fifth Avenue in New York, the Bund at that time seemed to be the new landmark of top luxury goods.

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< p > < strong > evacuation > /strong > /p >

< p > the most fascinating place of the world's top luxury brands is now fading away.

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< p > with the expiration of the 8 to 10 years' lease, some brands began to reconsider the value of the Bund.

Some of the brands choose to withdraw from the sales performance that is not commensurate with the high rent.

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In 2009, Hugo BOSS became the first luxury brand to leave the Bund because of the deteriorating sales volume. P HUGO.

In 2012, Du Gabbana (Dolce&Gabbana) moved away from the Bund No. 6, which was replaced by a buyer's collection store.

Subsequently, the Bund 18 lost Patek (Patek Philippe) and Boucheron (Boucheron) in succession, replaced by some art projects.

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The disappearance of "P > Armani" has become a typical sign of the disfavor in the Bund.

In that year, Armani introduced fourth diversified concept stores outside Milan, Hongkong and Munich to Shanghai.

In the past 10 years, it has been an important symbol of the Bund No. 3.

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< p > luxury brands choose the Bund for a specific historical reason.

When these brands enter China, they need a key to open the market. The popularity of the Bund makes their brands quickly known.

Zhou Ting, President of the Institute of wealth quality, believes that the significance of the Bund's old buildings to brand image is greater than that of sales.

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Before P, 2004, Shanghai people did not know much about Armani. As it opened its first flagship store in the Bund 3, visitors from the public can see its display in the window.

Now Armani's brand recognition has been greatly enhanced, and its historic mission has been completed.

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< p > some brands that strive to move closer to top brands, and brands that have not yet been fully understood, also want to show their image with the help of the Bund window.

A German leather brand MCM (Mode Creation Munich) is stationed in the Bund under such consideration. Now it is the only luxury brand in the Bund 3.

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< p > flow is also an important consideration for the Bund.

But Zhou pointed out that although the Bund has gathered a large number of people, the purpose of sightseeing is greater than that of shopping.

Philippe Leopold-Metzger, the Global CEO of Piaget, the same industry, told reporters: "Shanghai locals will not buy luxury goods in the Bund, and tourists in the Bund usually are not the target customers of those brands."

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< p > The Earl company did not set up a retail store in the Bund, but set up a special counter in the Bund No. 18 watches and jewellery.

Mai Zhenjie said that the count's company has built a store in Nanjing West Road and Huaihailu Road, which is closer to its own consumer group.

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The reason why P drives the Bund to leave the world is also the dissatisfaction with hardware facilities.

The old buildings in the Bund are not designed for commercial format, but shopping is not convenient.

The shortage of parking spaces has affected the Bund's attractiveness to shoppers.

To make matters worse, since 1992, the Bund has entered a stage of redevelopment.

In order to narrow the carriageway and widen the green belt, the recent pformation resulted in the passing of vehicles must pass through the underground, which affected the stop and gather of the people.

The glitz just conceals the fact that this format is not sustainable.

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Armani, which bid farewell to the Bund 3, has retained its storefront in Nanjing West Road's Hang Lung Plaza, P.

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< p > according to DTZ's report, the average rental of high-end shops in Shanghai in the first quarter of 2013 reached 59.8 yuan / square meter / day, and Nanjing West Road ranked the top 85 yuan per square meter per day.

Hong Shuhui disclosed that the rent of the same store in the Bund is about 40 to 50 yuan per square meter per day, although the interest of high-end brands has subsided.

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< p > the present situation is not what it used to be.

"The owners of the Bund have higher requirements for rents and brands. They can really afford to buy and appreciate the customers in this lot and do not necessarily choose the Bund, because Shanghai has too many choices."

Hong Shuhui said.

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After the opening of the three high-end shopping malls of "P", "Mei Tai Heng", the largest luxury brand business circle in Shanghai has been formed, attracting many international groups to settle down, including Louis Vuitton Moet Hennessy in France, Louis in Switzerland and Richemond in France.

By the end of 2012, 935 famous international brands along the Nanjing Road, and 95 first-line brands along Nanjing Road, Jingan.

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Less than P, many famous brands are also new favorites of luxury goods.

Many brands such as Hermes, Louis Weedon (LouisVuitton), Cartire (Cartier) and so on are attracted to shop here.

The location of luxury goods focuses on the cluster effect, especially the new brand's desire to live next door to famous brands, thereby expanding its popularity.

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< p > Patek Philippe moved the store to No. 33 the Bund source not far from the Bund.

"The Bund source" is the source of the Bund. Compared with the 1500 meters in the golden section of the Bund, it is better than traffic and commercial development maturity. In the design, there are both the commercial pedestrian street of Old Summer Palace road and the high-end shopping mall such as Yifeng the Bund source, which is suitable for the shopping and shopping needs of consumers.

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The Bund P, which also has the same old buildings, has risen rapidly in the past one or two years, attracting a number of top high-end brands.

Bottega Veneta set up the flagship store in China, where Gucci (Gucci) men's clothing custom concept shop and Valentino (Valentino) Shanghai flagship store are located here.

The Bund source launched the "club concept" to provide customized services such as appointment shopping guide and private image consultant, and also catered to the luxury merchant's mind.

In Shanghai, where luxury markets are showing signs of saturation, branding is also keen to explore new retail models.

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< p > the disgrace of "a the Bund" is also a microcosm of the current situation of luxury goods in China.

Over the past year, the performance of major luxury brands has slowed down in China.

According to Bain's statistics, the total consumption of luxury goods in mainland China was 115 billion yuan in 2012, and the growth rate was 7%. In 2011, the figure was 30%.

The sales growth rate of the peak group last year was 9%, lower than the historical average of 14%.

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Armando Branchini Branchini, President of Italy Luxury Association, believes that the booming development of Chinese consumers' overseas shopping and luxury E-business has squeezed the share of China's Luxury Retailing Industry in P Armando.

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< p > the decline in sales results in the luxury brand's austerity plan.

Some brands have announced that they will slow down their new stores in China in 2013. Gucci said that Gucci will not open stores in new cities this year. Hermes will only open a new store this year.

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< p > but the expansion of international top brands in China will not stop.

Since opening 5 stores such as Versace (Versace) in Beijing in 1991, Armando has expanded the number of retail outlets in China to 640, and plans to increase 100 by next year.

A few years ago, the luxury industry had a popular saying: put new luxury goods in the old market, and old luxury goods in new markets.

"But like emerging markets like China, these new and old brands want to show their latest side."

Armando said.

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< p > many luxury brands have been expanding rapidly in China, especially in the first tier cities.

Hong Shuhui said: "at present, the consultation of big names has been concentrated in the two or three line cities, and the brand entering Shanghai is a big shop in Nanjing West Road. The goal is very clear."

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< p > Mai Zhenjie visited 15 two or three line cities in China in the past two weeks.

"Business opportunities are nurtured in these vibrant new markets," he said.

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< p > luxury brands constantly select new cities according to their own development stages, and adjust the best address of the same city.

As a window for Chinese consumers to come into contact with luxury brands, the Bund is unloading this historical role.

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P came to China for the first time since 1982, and Armando has visited China more than 90 times.

"The market is changing dramatically."

Armando Branchini told reporters: "over the past 30 years, I have seen four or five different China."

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