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    A&F Deficit Continues To Expand, It Is Hard To Block Fast Fashion.

    2014/6/5 17:58:00 67

    A&FLossFast Fashion

    < p > under the extrusion of < a href= "http://www.91se91.com/news/index_c.asp" > fast fashion > /a >, the performance of the once popular clothing brand A&F declined significantly.

    A few days ago, Abercrombie&Fitch, the famous American youth clothing retailing group, announced its first quarter financial report. The company's losses expanded from $7 million 200 thousand last year to $23 million 700 thousand.

    < /p >


    < p > earnings showed that group net income fell by 2% to $820 million, while sales in the US decreased by 6% on average and 5% in other regions.

    The group said that the last half of the season's discounted goods and increased promotional activities reduced the gross profit margin of the group.

    < /p >


    < p > but in the industry, A&F's "red flag hang" is directly related to the extrusion of fast fashion brands such as Forever 21, H&M and ZARA.

    No matter from design or price, A&F and other traditional a href= "http://www.91se91.com/news/index_c.asp" > Youth dress < /a > can no longer compete with fast fashion brands.

    < /p >


    < p > it is understood that as of February 1st, < a href= "http://www.91se91.com/news/index_c.asp" > A&F < /a > total revenue in the fourth quarter of last year decreased by 12% to 1 billion 300 million US dollars, of which retail stores in the United States decreased 15% in the same store sales, while international retail outlets sold 18% in the same store, with an overall decrease of 16%.

    If the sales channels are directly faced with consumers, the overall decline is 8%.

    < /p >


    "P", it is said that A&F plans to "raise" the brand audience and prepare new product classification, market planning and price positioning for the older consumer groups.

    < /p >


    < p > A&F Shanghai flagship store opens in Jiali center, Jingan, Shanghai. This is also the fifth flagship store that A&F has opened in Asia after Tokyo, Singapore, Hongkong and Seoul.

    A&F is a century old brand founded in New York, USA in 1892.

    < /p >


    < p > related links: < /p >


    At present, the blowout development of the Internet has greatly partitioned the retail market share, shopping centers occupy the traditional market share of the department stores, and gradually enter the two or three line cities. The traditional clothing retail entities shops, department stores and special counters have been greatly impacted.

    At the same time, shopping centers and department stores have limited business space, and they are bound to some brands that want to build experiential shops.

    < /p >


    < p > and for a mature brand, the access threshold of large shopping malls is high and the operating cost is very high.

    Even in the bustling area of the core city, there are many problems such as the rise in store rents and the small scale of shops.

    These are bound to further enhance the brand of traditional shoes and clothing.

    < /p >


    < p > the superposition of various unfavorable factors has brought serious challenges to the operation of enterprises.

    Among the above three brands, the performance of the wedding bird and the card slave road in 2013 were the first to decline since they were founded, and AOKANG international continued to experience deep decline.

    < /p >


    Based on P, these leading brands must find a way to change, to save the declining performance, and to seek the continued competitiveness of the brand in the complex retail situation.

    The multi brand integrated large store mode is a common form of terminal innovation.

    < /p >


    Wu Zhize, chairman of the news bird group, had visited Britain before. He found that Marsha and another local company basically occupied 70% of the men's clothing market in the UK.

    The two companies from the brand to the retail business are the company's own operation, there is no intermediate link.

    This gave him inspiration.

    < /p >


    < p > in Wu Zhize's opinion, because of the lack of scale economy, profits will become more and more small and will be difficult to survive in the future, but if we form a "brand joint fleet", we can form joint efforts and dilute the cost, so as to form scale benefit through building a multi brand operation mode of direct operation system.

    If the "Phoenix Shang" integrated store mode can be successful, that is, the brand development mode has been innovated, and the channel advantage has been highlighted for the brand.

    < /p >


    < p > Wu Zhize further pointed out that there are two ways for clothing brands to make profits: one is the scale effect, such as ZARA, UNIQLO, and so on. The shortcoming is that the rate is low, the scale profit is dependent, and the other is to make the brand value bigger. For example, the rate of Hermes and LV can be 50 times, and the space is huge.

    In the future, the brand of the wedding bird should make full value chain through the combination of brand culture, business and social resources, and create more strategic "force points".

    < /p >


    < p > AOKANG international chairman Wang Zhentao's view also echoes Wu Zhize's formation.

    Wang Zhentao pointed out that in the face of fierce market competition, the drawbacks of the once famous chain monopoly mode appeared. Enterprises need to innovate the channel mode and realize the two growth.

    < /p >


    < p > he further indicated that with the gradual promotion of the multi brand strategy of the company, the traditional shops were restricted by the business area and could not carry the function of multi brand promotion and joint driving development of the company. The proportion of super large shops and high-end shops was too low, which has become the main constraint factor for the rapid development of the multi brand cooperation of the company.

    Today's consumers are also looking forward to meeting all the needs of shopping in a commercial street, a shopping center, or even a store.

    Therefore, AOKANG International Museum develops brand integration and "one-stop" high-end customization to provide consumers with more diversified and international shopping experience.

    < /p >

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