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    China's Casual Wear Brands Fall Into The "Closing Shop Tide"

    2014/7/15 9:17:00 42

    Casual WearBrandShop Trend

    Less than P, the casual wear brands that once hit the domestic market have been caught up in "closing shop tides". A few days ago, Baleno announced that it had closed 388 stores in the mainland market. In the market of Jincheng City, Baleno, Muse, bang and Semir brands have been closed frequently in the past year. Insiders pointed out that under the double impact of fast fashion brands and the rapid development of e-commerce, the traditional casual wear brand market is ushering in a shuffle. < /p >
    < p > > a > Data < /a > shows that in 2012, the number of stores in 2012 climbed to the peak of history, and the number of stores in mainland China was 4044. But it didn't last long. Just two years later, Baleno encountered a "closed shop tide". According to the latest earnings report of Baleno parent company, we have closed 465 stores in the mainland and Hong Kong, Macao and Taiwan over the past year. By the end of March 2014, the number of outlets in the mainland market has reached 388, accounting for 10% of the total number of stores. Behind the massive closure of stores is the decline in Baleno's performance in recent years. As at the end of March 2014, Baleno's net sales amounted to HK $2 billion 754 million, down 9.34% from the same period last year. The performance of its parent company De Yongjia was not satisfactory. By the end of March 2014, the total revenue of the group decreased by 12.4% to HK $9 billion 860 million, a decrease of 12.37% compared with the same period last year. It's not just Baleno that keeps shutting down. In 2013, Metersbonwe closed more than 200 stores, while Semir closed more than 700 stores. Giordano listed in Hongkong has closed 75 stores, including 54 stores in the mainland. < /p >
    < p > "full court 50 percent off, casual pants buy one get one..." Yesterday, in a Baleno store near the Yellow River Road, all kinds of promotional advertisements were full. Store sales staff said that such a large-scale promotional campaign has been maintained for a long time, but sales did not achieve the desired effect, sales in the store still fell sharply, "in the second half of this year, our store and a nearby store may shut down." < /p >
    < p > "in the past when the market environment was good, in order to pursue the scale effect, the standard was not strict, opened a part of" moisture "shop. Now that the environment has changed, it has begun to shift from the pursuit of store volume and order growth to the growth of single store performance, increasing store effectiveness rather than shop numbers, so we need to close some inefficient, unprofitable stores. A Baleno store manager said. < /p >
    < p > < strong > expert opinion: the industry will gradually mature to < /strong > /p >
    < p > why casual clothing brands will gradually fall into a "closed shop tide"? In this regard, the analyst of China Research Institute of Pu Hua pointed out that "the rapid fashion brand development and the rapid development of e-commerce have all taken a large part of the market that originally belonged to casual wear." Over the past two years, UNIQLO, ZARA, H&M and other international fast fashion brands have been expanding in the mainland. Facing the same living environment and the same electricity supplier challenges, fast fashion brands have fully embodied the word "fast" in terms of product upgrading and inventory digestibility. The large number of styles and the fast updating speed cater to the demand of consumers for new, fashionable and cool products. The main reason why the traditional fashion and leisure brands such as Baleno are abandoned by the market is simply quality and light marketing mode and marketing means. In addition, in recent years, the rapid development and expansion of the electricity supplier has occupied a large living space of the physical store. In the face of the rapid rise of the electricity supplier mode, the fashion store brand can only admit defeat to the physical store. < /p >
    Less than P, it is noteworthy that the predicament of the traditional casual wear brand market is a harbinger of the industry's maturity. It is the inevitable path for many industries in China to rush from everyone to make money to most enterprises to earn money, then to most enterprises not to make money, and then opt out selectively. However, the situation in 2014 is still grim. It is hard to say when the industry will recover. However, it is estimated that the adjustment period will remain in the next 2-3 years. In the process, some brands that are not suited to the situation will be eliminated, and enough excellent enterprises will survive and reoccupy the market. < /p >
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