"Lord Buddha" Has No Luck With China: A Loss Of HK $20 Million A Year In China

Recently, the latest financial report released by Hongkong I.T group showed that the loss of Beijing's old Buddha's department store, which was jointly operated by I.T and old Buddha, continued to expand to HK $20 million as of the first half of fiscal year August 31st.

According to previous earnings reports, the joint venture store was formally put into operation in October 2013 and has lost HK $10 million 700 thousand in the 5 months of February 28, 2014.

Beijing's old Buddha is the second time that Buddha has set up shop in China.

In 1997, Lord Buddha once opened a shop near a side street near Wangfujing, Beijing (18.66, 0.12, 0.65%).

The loss lasted only a year.

15 years later, once again, he entered the Chinese market. He joined the Hongkong fashion retail group I.T, which invested 50% respectively and set up Lafayette general store (China) Limited.

In September 2013, the opening ceremony of Beijing's old Buddha, a joint venture.

The store is located at the junction of Xidan North Street and Ling Hutong, with six floors up and down.

When the new store opened, Thierry Vannier, head of the Department of international promotion, said: "we expect to open 16 branches in mainland China in the next 5 years."

More than a year later, not only did the plan to increase the store's store fail, but also the profitability of the Beijing store.

Its location is a loss.

The reason.

Although official statistics show that the daily traffic volume of Xidan is about 300 thousand passengers, but in Beijing, Xidan is known as the "first block".

Moreover, unlike the French old Buddha who liked to visit the Chinese when they went to Paris, Beijing's old Buddha's position was relatively low.

The original idea is to give Chinese consumers a special and unique niche brand, whether it comes from Europe or America or Asia.

But compared with these brands, Xidan's shopping crowd is obviously more keen on the fast fashion of ZARA and H&M.

。