Traditional Business Circles Are Trapped In The Bund And Forced To Take The "Seven Deadly Sins".

< p > not only is the Bund, but some shops in some gold trading areas have also been vacated after the collective withdrawal. Up to now, Shanghai's most prestigious Huaihailu Road business circle has also seen a number of idle shops along the street.

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< p > "what do I take" a > brand < /a > to fill the vacancy that Patek Philippe has left? What brand can be equal to it? "This was the helpless feeling of the Bund No. 18 operator at the time.

This frustration is still continuing.

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< p > < strong > why luxury brands withdraw collectively? < /strong > < /p >

< p > < strong > 1: tourists have more rents and higher bags rate than < /strong > /p >

< p > although the Bund has gathered a large number of people, the purpose of sightseeing is greater than that of shopping.

Shanghai locals will not buy luxury goods in the Bund, and tourists in the Bund usually are not the target customers of those brands.

"First Financial Daily" reporter entered a luxury brand store to see, almost no guests, salesperson said this is normal.

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Less than P, the flow of people out of the store makes the Bund's high-end brand business difficult to please.

Informed sources revealed that a similar brand like GUCCI can sometimes exceed $1 million a day in the Nanjing Road business circle, while the similar brand's daily turnover in the Bund may be only 100 thousand yuan, and the gap is several times.

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< p > such a low turnover of the Bund rents is very high. Many businessmen reflect that the average shop in Nanjing Road commercial area is 20 yuan ~30 yuan per square meter per day, and this figure has increased to 30 yuan ~40 yuan in the Bund.

Low income, high cost, even luxury brands do not want to do such a business.

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< p > < strong > Two: shopping center increases the traditional business district fade > /strong > /p >

< p > because rents are lower than the Bund and other commercial circles, "SHANG Jia center" and "K11" have gradually attracted top brands to enter.

The famous wedding dress brand Vera Wang opens the first Asian Wedding flagship store in Xintiandi fashion shopping center.

Breguet (Bao Ji) opened the world's largest flagship store in Xintiandi The Langham London Hotel.

Although Giorgio Armani has been withdrawn from the Bund, it has been stationed in new projects such as Shanghai gold center.

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< p > apart from the contention and diversion of brands, the change of passenger flow also makes the old business circle less and less "gold". Because a large number of urban residents move to the suburbs, a number of community business projects have risen, which has hit the old "gold" business circle.

"Shopping center construction: the most active city in the world" report shows that with the rapid development of new business circles, more than 80% of new supply is located in secondary business circles.

The relatively centralized supply areas include Hongqiao business district, Qibao, Wujiaochang and New River Bay, and suhewan.

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< p > Shanghai business information center and Shanghai shopping center association data show that in 2013, Shanghai suburbs shopping center business income increased by 17.4%, far higher than the same period in the central city shopping center revenue growth of 3.2%.

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< p > according to incomplete statistics of the commercial real estate research department of the search network, the annual sales volume of the shopping center in the inner ring of Shanghai can be more than 1 billion yuan, and the annual turnover of such projects in Fengxian South Bridge International Commercial Plaza can also exceed 1 billion yuan.

The huge competition pressure makes the business district that looks like golden section fade away.

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< p > < strong > Three: the Bund buildings are independent of each other and lack shopping atmosphere. < /strong > < /p >

< p > the initial stage of the development of the Bund as a whole is relatively good at the beginning, but all the buildings are developed independently. The development teams and companies are mainly respective (Note: that is, the two landlords' problems. Huaihailu Road is also encountering the two landlord's offer to exaggerate the brand to run away from the shops), the links among buildings, location differences, parking spaces and other resources sharing, these plans have not been completed.

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< p > the Bund has not yet been pformed into a European commercial street without a sense of luxury.

The Bund lacks the development of the area. Many branches of Fifth Avenue and Oxford Street are well developed and the whole is unified.

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< p > and the owner of a the Bund is a state owned enterprise. They lease the management right to the independent developer, while the Bund has no special department responsible for the unified management of investment.

Most obviously, when you stroll around the Bund, you see a certain office building and a customs. The feeling of shopping is extinguished instantly.

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< p > < strong > Four: brand exhibition mission begins to focus on actual sales < /strong > < /p >

< p > at the most brilliant time, there are 13 top brands on the first and two floors of the Bund 18.

Deng Yide, chief executive of the Bund, who once gathered the most luxurious brands, had to admit that in the interview with reporters, "some big brands no longer need to use the platform of the Bund to promote them, and now China's domestic environment has made them all go to the moment of achievement."

When luxury brands put their sights on the renminbi, the Bund's position is very difficult.

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< p > the head of Giorgio Armani brand PR department has said that the fate of the Bund has been almost ten years ago, and to a large extent, the original intention of upgrading the brand image has been fully realized.

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< p > strong > Five: the first tier luxury market is saturated, and the two or three line cities are: /strong > /p >

< p > a person who has been engaged in the luxury brand PR industry for many years told reporters: "at present, in the domestic first-line market, because the luxury brand enters the time earlier, the number of people who own the same product increases, which leads to the attractiveness of the brand to consumers, and the sales growth shows weakness.

For example, LV stores in Beijing and Shanghai, where high-end consumers are concentrated, store sales decline 5%-10% every year.

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< p > a widely cited example is the LV flagship store of Renheng land Plaza in Chengdu, which sold 5 million yuan worth of goods on the day of trial operation in September 2010.

The reason why LV opened flagship store in Chengdu is that the sales of LV Chengdu's direct sales outlets up to 900 million yuan in the past had ranked the top three in China, second only to Beijing and Shanghai, while Prada, Ermenegildo, Zegna and other brands also ranked third in China.

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< p > < strong > six: the performance of luxury goods in China decreased by less than /strong > /p >

< 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 Branzini 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 > < strong > Seven: brand new upsurge < /strong > < /p >

< p > with the continuous improvement of the cultural quality of the high level, China's rich people have gradually gained a comprehensive understanding of their taste and unique pursuit, and the price is no longer the only purchase.

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< p > luxury is vulgarization. Luxury fatigue is not unique to China. This phenomenon has also appeared in Japan, Europe and the United States.

For example, Logo has been widely used as a visual element to reflect the status of luxury goods. In the 90s of the last century, LV's interlaced alphabet logo was once popular in American and European cities, but this enthusiasm gradually faded away, and the brand that turned out to be popular was those whose logo was not obvious or signed by the signer.

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< p > take the Piel Frama mobile leather products series as an example. Manual, high quality and other characteristics make these "low-key" luxury goods gradually possess a lot of discerning consumers.

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