Analysis Of "China Curve" In Luxury Industry

< p > recently, the Marks &Spencer, the largest business retail group in the UK, has been reported to be reluctant to close 5 of the 15 stores in China, and will be looking for partners in China to abandon its previous direct sales mode.

Spain's fast fashion retailer Mango is also in trouble. Net profit growth slowed sharply in the 2013 fiscal year, an increase from 9% last year to 9%.

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In the past ten years, China's retail industry is too easy to make money, almost everywhere gold mines to be dug up, P.

The top executives of the retail industry express their nostalgia for the past ten years on different occasions.

With the continuous improvement of the economic situation and the rapid expansion of purchasing power, domestic and foreign well-known brand manufacturers have been able to "earn money lying down".

The sales volume of the retail industry has reached a new high, attracting international brands from all levels to pour into the Chinese market.

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< p > however, the best picture seems to have passed.

Economic growth tends to be gentle, e-commerce is rising rapidly, and the strict control of state public funds is becoming the three difficult problem for the traditional retail industry.

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Less than P, the number of store switches has been a couple of happy worries. In China, luxury goods and fast fashion groups, which are used to making money in the future, are being forced to face the pformation test of chess to the middle of the game.

Foreign groups are also in urgent need of new competition.

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< p > < strong > saturation of the first tier cities: "shopping" two or three lines < /strong > /p >

A group of hot male models in front of the flagship store in Shanghai, Shanghai, in mid April, P, became one of the hot topics of micro-blog, WeChat and other clients in the A&F.

This is the marketing of the high-end clothing brand Abercrombie &Fitch (A&F) of the United States before the opening of the first store in mainland China.

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< p > in early March of this year, the famous fast fashion brand New Look of the United Kingdom officially launched its first store in Shanghai, announces its full entry into the Chinese market.

Its pricing from products to target customers is similar to those of ZARA, GAP, H&M, C&A, Muji and UNIQLO.

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Less than P, at the moment, only one store in Xujiahui, Shanghai, has concentrated on all the stores of all the brands mentioned above, and the competitive situation of "street Hawking" can be seen as white hot.

The worries of "fast fashion saturation" in the industry experts are gradually becoming reality.

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< p > however, even before the evaporation of consumption enthusiasm, even the high-density shop pattern and the white hot competition situation still can not affect the speed of the layout of fast fashion group stores.

These enterprises will compete in the first tier cities in the number of shops and flat targets, and will gradually compete with the two or three tier cities. The fierce competition of bayonet is rare.

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< p > reporter learned that in 2014, H&M parent group Hennes &Mauritz AB will open 80-90 new stores in China, the number of new stores is the largest in its global market.

Inditex SA, the world's largest clothing retailer in Spain (Zara parent company), will also maintain more than 50 stores in Huaxin this year.

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In addition to that, P Inc., which has more than 80 stores in China at the end of last fiscal year, has introduced its first parity brand Old Navy to China for the first time last month, and plans to set up 30 Gap brand stores and 5 Old Navy stores in the current fiscal year, so that the number of shops in the country will exceed 100 in the year of.

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P, Japan's home life chain Muji has also revealed its willingness to expand rapidly in the near future. Its senior executives expressed the hope that the number of stores in China could expand from 100 to 1000.

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< p > such a number of stores will obviously not be concentrated in the first tier cities. The cultivation of the two or three line cities has been put on the agenda of various groups.

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< p > however, the expansion of channels is not achieved overnight.

A well-known clothing company official told reporters that in the first tier cities in China, the fast fashion brand business of foreign capital is smooth sailing, because this part of the market is quite close to the mature market abroad.

However, the situation in other cities may be different. "Second tier cities half understand, three line cities do not understand, four line cities can not catch up".

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< p > and the situation between the two or three cities in China is also very different. For example, the consumption level and idea of Chengdu and other cities are close to those of the first tier cities, and the promotion of fast fashion will naturally be more successful.

But many cities still have a long way to go before they really accept fast fashion. These markets are still the main brands of domestic brands.

The leader said frankly that the most difficult point is how to balance the cost of resources and market opportunities.

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< p > it is worth noting that decisions and coordination of these large foreign companies usually depend on their global structure.

But the decision makers at the core of the headquarters tend to stay away from the Chinese physical market. This situation may lead to constraints when foreign fashion giants go deep into the two or three tier cities.

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< p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > local < /a > bottleneck: channel control and brand pfer < /strong > /p >

P, a vast Chinese market, has great differences between regions and cities. This has always been a challenge for foreign brands to expand in the Chinese market.

How to "steady and firm" step on the market pulse, adjust measures to local conditions to meet local economic consumption demand sales strategy, greatly test these brand decision makers.

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< p > compared with the competition strategy of the hot business circles in the first tier cities in the early years, more and more foreign fast fashion enterprises are trying to form strategic alliances with local enterprises and try to control more channels.

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Among them, P is one of the largest fast fashion groups in Japan, and the Barok group (Moussy), which owns Moussy and SLY, is the most representative of the cooperation mode of the local footwear retail giant, BELLE international.

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< p > in the second half of 2013, BELLE Group invested $733 million to acquire a 31.96% stake in Barok Japan (Baroque), and joined the joint venture of Barok in China to enter the apparel and accessories industry.

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< p > by the end of 2013, Baroque group has 24 stores in China. Its opening rate will be greatly accelerated in 2014, and 50 new stores will be opened throughout the year. In the future, it will rely on BELLE's channel network to march into two or three line cities and plan to accumulate nearly three hundred stores within three years.

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< p > the speed of market reaction and the speed of shop spreading are directly related to the life and death of fast fashion enterprises.

But in the actual process, bottlenecks are everywhere.

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"P >! --EndFragment--!" looks easy to enter China, but in fact, China is the most difficult market in the global retail industry.

As a foreign capital enterprise, it is very difficult to develop the Chinese market independently, so we must find cooperation with enterprises that understand the situation of China.

This is the reason why we choose to cooperate with BELLE. We hope to expand the brand rapidly in China. "

Mukai Hirono, chief executive officer of Barok group, told reporters.

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< p > "foreign fast fashion enterprises usually have a general understanding of the market of the first tier cities, but to the two or three tier cities, they will face another brand new challenge.

To develop sales on a large scale, local teams must be established to give full play to their national sales channels.

Mukai Hirono said, "the accumulation of these resources may take ten years for a foreign enterprise, and through the help of mature domestic sales channel partners, we can greatly improve efficiency.

When consumer demand is in place, brand promotion can be carried out very quickly.

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< p > according to the reporter, in 2008, when Mukai Hirono took office as the new chief executive, the main store concentrated in Japan's Baroque group began to target the Chinese market.

After three years, its first brand was introduced into China, and in 2011 it proposed a plan to raise $200 million in Hongkong.

Since then, the fund-raising plan has been shelved, but the BELLE group, which is eager to pursue category development outside the main business footwear industry, will soon hit it off.

In both cooperation, channel control and brand delivery become the most important keywords.

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< p > Mukai Hirono admits that the division of labor with BELLE is that Barok striven for the pursuit of brand value. BELLE group, as a giant in the domestic retail industry, has the advantage of opening up the store, and the sales revenue is half divided.

"BELLE stores up to one thousand or two thousand stores a year, and BELLE's understanding of the Chinese market is also unmatched by ZARA competitors."

He said.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > fast fashion > /a > Enterprise shuffling < /strong > /p >

Compared with Barok's "foresight", P is now forced to look for local partners and China's Marsha general stores. This is a standard case in recent years when foreign clothing brands encounter "Waterloo" in China.

Some analysts predict that Martha department store clothing sales will decline for the 11 consecutive quarter.

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P, the largest clothing retailer in the UK, has more than 770 stores in the UK and has more than 430 stores in more than 50 regions of Eurasia.

Its stores in China are mainly concentrated in Shanghai, as well as Changzhou, Ningbo and other places.

Compared with the first tier cities, its performance in the two or three tier city stores is not satisfactory.

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Martha P has finally made great adjustments to China's business, and has chosen to enter direct markets such as Beijing and Guangzhou to set up flagship stores, and rely more heavily on e-commerce. Through Tmall's flagship store platform, it has expanded its customer base nationwide.

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< p > although Martha Rayfield, managing director of Greater China, told reporters that Martha's performance in Shanghai's two flagship stores has always been excellent, and believes that Beijing and Guangzhou will continue to write the flagship store's success mode in the new cities such as Beijing and Guangzhou. However, for the whole of China, the pformation of its industry has to start as soon as possible.

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Stephen Rayfield said: "we are reassessing the existing store structure and may adjust the location of some two level shops in the vicinity of Shanghai to prepare for the opening of a new flagship store."

The new flagship store will provide customers with fashion and imported cuisine.

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< p > brand positioning and price strategy are considered to be the biggest reasons for Marsha's defeat in China.

The director of foreign fashion enterprises told reporters that the pressure of business operation is not only internal decisions, but also the unfavorable factors of the overall downward trend in the retail industry in recent two years.

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"P >" now a href= "http://www.91se91.com/news/index_c.asp", "China's clothing retail" /a "competition is becoming more and more intense, and more and more new participants in the industry.

But on the other hand, China's GDP is saying goodbye to the previous rapid growth and entering a stable period, and the space for retail development is shrinking, which will definitely lead to the rapid death of those worthless brands.

People in the industry are so analyzing.

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< p > the fast fashion brand Esprit, which had taken full charge of the second tier shopping mall after 2000, has become more and more competitive in today's homogenization competition. It is an indisputable fact that the stock price is high and the stock price of the parent company is falling all the way.

In recent years, problems such as slow brand upgrading and ineffective turnover of new products have caused Esprit to be criticized repeatedly, and it has also suffered heavy losses in this fast fashion battle.

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P, whose parent company owns two brands of Esprit and Edc, has lost its first financial year for the first time in fiscal year 00330.

The half year report as of December 2013, though earning HK $95 million, has reduced the total capital expenditure by 58.3% to 198 million yuan by reducing 15.1% (to 6 billion 94 million yuan) in operating expenses and reducing new store opening and shop refurbishment expenses.

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< p > although the deficit is profitable through the throttle, on the revenue side, the sales volume of the first half year is still down 5.4% to HK $12 billion 810 million.

Among them, Esprit women's wear, men's wear and Edc brand sales declined by 1%, 12.5% and 7.8% respectively.

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P fast fashion is not a game that everyone can easily earn.

Although at present, the competitive situation of the brand separation mountain such as UNIQLO, ZARA and so on is stronger and stronger, the reshuffle of fast fashion in China is inevitable.

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Less than P, department stores and commercial real estate, which rely heavily on large facade and high volume of traffic, are also invisible participants in the shuffle war.

Cushman &Wakefield, an international commercial real estate consultancy, pointed out in its report that 1/4 of the more than 700 shopping centers, department stores and shopping centers currently under development in China's more than 30 cities will end in failure, which means that developers will invest 150 billion yuan or will be "beat the water".

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