How To Deal With The Tide Of Closing Stores For Old Clothing Brands

Here in the world Clothing shoes and hats The small editor of www. net introduces that old clothing brands frequently close their stores and turn to the online to seek a way out.

Recently, it was rumored in the market that Lingzhi Fashion, which owns the brands of ONLY, JACK&JONES, VERO MODA and SELECTED, had issued an order in South China that all stores with monthly sales less than 100000 yuan would be closed. Although the above rumor did not receive a positive response from the relevant person in charge of Lingzhi Fashion, it is an indisputable fact that the former fashion giants have shrunk the pace of store expansion and closed stores with unsatisfactory performance.

People in the industry sighed, brand The problem "lies in the fact that there has been no change for so many years". The former fans have gradually aged, and they can not meet the new needs of the new consumption force of fashionable women's clothing (post-85 to post-90), and gradually lose their advantages in the competition with fast fashion brands.

　　 Many stores of old brand clothing are closed for consolidation

Lingzhi Fashion, which owns the brands of ONLY, JACK&JONES, VERO MODA and SELECTED, has recently withdrawn from some shopping malls in Hangzhou, Wenzhou and other cities. It is rumored that Lingzhi Fashion has issued an internal order: no new stores will be opened this year, and stores with monthly sales less than 100000 yuan will be closed. During a recent visit to some shopping malls in Guangzhou, the reporter found that the counters of ONLY, JACK&JONES, VERO MODA and other brands had not been removed.

The reporter learned that in addition to Lingzhi, Esprit, Aige and Banny Road, the number of stores in Banny Road in mainland China has decreased from 3820 in the last fiscal year to 3432. Eger closed 88 stores in mainland China in the first half of this year. The semi annual reports of listed apparel companies show that the adjustment of inventory and stores by major brand enterprises in the apparel industry is ongoing.

Recently, it was reported that Lingzhi Fashion had agreed to purchase M and M Direct, a British online fashion store, at a price of DKK 1.3 billion (about US $240 million).

Fashion retailer H&M e-commerce service officially entered China last week. The goods sold in online stores will cover all offline product categories, and all kinds of clothing and accessories will be sold simultaneously with physical stores. Previously, several fast fashion brands, including ZARA, Uniqlo and GAP, have vigorously developed their e-commerce platforms in China. ZARA has also confirmed that it will enter Tmall this autumn and winter. The competition of international fast fashion brands in the Chinese market has shifted from offline store opening competition to online competition.

　 Fast fashion brands accelerate the pace of opening stores

Compared with the frequent closing of old clothing brands, fast fashion brands seem to have a good life. H&M's recently released sales results for August showed that it recorded a growth of 19% at the local exchange rate, far exceeding analysts' expectations of 12.9%. By the end of August, the total number of H&M Group stores worldwide had reached 3341, up from 2964 in the same period last year.

According to the data released by the parent company of fast fashion brand Zara and the world's largest clothing retailer Inditex SA, as of the end of the first half of the year, the Group had 6460 stores in 88 markets worldwide, with a net increase of 120, and its online business expanded to 25 markets.

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Unbearable inventory

Industry insiders lament that the major brands under Lingzhi were once the wind vane of domestic fashion trends. However, since 2011, a large number of domestic department stores and shopping centers have appeared in the market of Lingzhi, with a discount of at least 50%

Brand clothing store closure continued, which corresponded to the high inventory pressure of the industry. According to Wind data, among the 19 A-share garment enterprises, 13 companies, including Seven Wolves, Baoxiniao, Burson, Kanudi Road, Georgebay, Dayang Chuangshi, have increased their inventories year on year compared with 2013, including 10 Baoxiniao, Dayang Chuangshi, etc company Inventories have increased for two consecutive years.