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Slow Growth In Clothing And Love To Expand Three Or Four Line Cities

2014/1/15 17:42:00 19

Clothing And Love Chinese Market Three Or Four Line City

reporter recently learned that E-LandGroup, a Korean retailer, who has been in the Chinese market for nearly 20 years and has been sticking to the direct marketing mode, has recently decided to open its clothing brand franchise business in China's three or four tier cities. 
Lin Yifan, founder consultant of brand consultancy, told reporters that P is mainly based on cost and channel considerations, and is for expansion needs. 
 January 13th, the reporter called the marketing department of clothing and love fashion (Shanghai) Limited (hereinafter referred to as "clothing and love"). The manager of the Department, Miss Lu, confirmed the opening up to reporters, but did not disclose more information on the grounds of not a company spokesperson. 
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 data show that clothing and love entered the Chinese market in 1994, and now there are stores in China's first tier cities and second tier cities and some three tier cities. In 2011, the number of stores reached 5093, becoming the largest company in all international fashion enterprises in China. 
 it is worth noting that clothing and love entered China for 20 years and have been operating directly in the department store. 
 at the same time, reporters learned that, as early as six months ago, Huang Guojun, director of business development at Tianhong shopping center, once revealed that micro-blog was considering opening up. The news was also confirmed by reporters after calling the Huang army recently. He said that the clothing and love group has recently been open to join, and the open areas are mainly three or four line cities and the blank market where love and clothing have not yet entered. 
 for this open alliance, insiders told reporters that the main categories include women's clothing (ELAND, TEENIE WEENIE, ROEM, PRICH, SCOFIELD), men's wear (PLO-RY, SCOFIELD), children's wear (ELANDKIDS, PAWINPAW) and underwear brand, and the main open areas are mostly three or four tier cities in China. "Taking Guangdong Province as an example, Yangjiang, Jiangmen and Qingyuan are the cities that open up." 
 to open up, Huang Guojun said that the labor and management of love and clothing is sinking again, so it can only develop new customers by means of local franchisees. 
Ceng Huabin, director of the Promotion Department of the Pacific department store, told reporters that as far as Chengdu is concerned, the rate of clothing and love shopping in the shopping center is very high. Once entering the three or four tier cities, it is not always possible to digest such a large body size for clothing and love. 
 in Lin Yifan's view, the opening up of clothing and love is mainly based on cost and channel considerations. When the clothing brand expands and expands, the highest cost comes from the store rents. If the franchising is open, the cost of building stores can be greatly reduced. At the same time, opening up helps to increase the number of stores. 
 in addition, as the sales channels of clothing and love are mainly department stores and shopping centers, Lin Yi Fan pointed out that entering local markets often requires local channel resources. "Besides the national brands like Wanda, all the shopping centers will have regional brands, and local franchisees may have better ways or lower costs." 
 performance growth slowed down 
 it is understood that as a "department store standard", sales of clothing and love in the Chinese market in 2011 have reached 8 billion 900 million yuan. Earlier, a South Korean media quoted Pu Shangqing, vice chairman of the clothing and exchange group, as quoted in the report. In 2012, the sales volume was about 2 trillion won (11 billion 400 million yuan). 
 however, like other clothing brands, the performance of clothing and love has also slowed down. According to the comprehensive media reports and the official website of Liyue, the sales volume of the clothing and love District in China from 2008 to 2012 was 3 billion 500 million yuan, 5 billion yuan, 6 billion 630 million yuan, 8 billion 900 million yuan and 11 billion 400 million yuan respectively, with the growth rates of 42.9%, 32.6%, 34.2% and 28% respectively. 
 for this reason, Huang Guojun believes that sales growth is indeed slowing down, but it is because of the large number of reasons. 
 however, the collective dilemma of < a href= "http://www.91se91.com/news/index_c.asp" > clothing enterprise < /a > should not be ignored. According to the 2012 performance report released by the 14 major listed companies in the clothing industry, it is found that the net profit has fallen by 61.5%. Among them, the US, Semir and Anta have lost their first performance since listing. Net profit has decreased by 29.55%, 38% and 21.5% respectively compared with the same period last year. 
, but for those who join or will not be optimistic about the Chinese market, the industry insiders said they could not agree, and said that expansion is still the main strategy for the development of clothing and love in China in the future. 
In 2012, P announced that as far as 2016, the sales target of 10 trillion won in China was the new plan of love and career in China. In order to achieve this plan, the clothing and love plan has expanded the brand to 70 in 4 years, and the store has increased to 1.2. 
In recent years, P has also bought foreign high-end brands to enter the Chinese market. In 2013, clothing and love also bought us sports brand K-Swiss for $170 million. 
 accelerating < a href= > http://www.91se91.com/news/index_c.asp > sink > /a > /strong > /p >
 Zhang Heng, chairman of Guangzhou Shang Dao marketing consultancy company, told reporters that the strategy of marching into the three or four line city was no problem. As the consumption level of the first tier cities gradually increased and the personal consumption pressure increased, the proportion of clothing consumption occupying personal expenses was gradually decreasing. However, this proportion is increasing in the three or four tier cities. 
Lin Yifan P also believes that entering the three or four tier cities will undoubtedly increase its coverage and market share in the Chinese market and strengthen its brand influence in China. At present, the three or four tier cities have already had a very good contact ability for high-end brands, but also have a consumption base. 
 Ceng Huabin told reporters that because clothing brands have category a shops and B stores (better image, new and bestsellers will give priority to supply a shop), if sinking to the three tier cities, clothing and love will probably release the B shop's permission, while A-store's image stores in the first tier cities are also directly run by themselves. As B stores have some gaps in the supply and quantity of goods, they are easy to be accepted by consumers in three tier cities. 
 however, Lin Yi Fan stressed that although entering the three or four tier cities at any time is not late, but opening up is a double-edged sword, requiring the company to have very strong control and control capabilities, including product control and operation control. If the management capability is not up, joining the alliance is not necessarily a good thing.