How To Solve The Problem Of Entity Store?

"I have turned off a dozen stores."

A senior Swiss watch brand China general manager told the daily economic news that in recent two years, the luxury market has plunged rapidly, and its sales in China have dropped by about 10%, which has been a good achievement in the industry.

Faced with such a situation, luxury companies choose to turn off poor performing stores to save costs.

At the same time, we should invest more in business shops and do more VIP activities to promote sales.

Stores are very critical for luxury brands.

The count CEO, Mai Zhen Jie, told reporters that the entity store is the space for the brand to communicate with customers, and its significance is not just sales.

Luxury brands attach great importance to the Internet, but for the price of high-end watches tens of thousands or even tens of thousands of yuan, the meaning of the Internet is more communication and interaction. At present, no high-end watches and jewellery brands choose pure electric business.

However, the super high cost of physical stores also makes the luxury brands feel under pressure.

Recently, the consulting firm disclosed that the first floor store rents in Shanghai Hang Lung Plaza and the national gold center have reached the level of 100 yuan / square meter / day.

In the sharp decline of passenger flow, the sales entities are playing the game of burning money.

This year, many families

The store slowed down and even closed some of its existing stores.

In the latest quarter of Coach's earnings report, the number of stores in mainland China increased by only two.

Hendry, an executive at the retailer, said that many of the luxury brands' strategies this year are to streamline their stores, and to shut down those outlets that are less profitable and difficult to make profits.

More cautious when opening new stores, and strive to "open a successful one".

For flagship stores, important stores to increase investment and enhance customer experience.

For the top

For example, shop space is not enough.

The brand wants to expand the area, and the phenomenon of cross layer is increasing.

But not every brand can successfully take up the space upstairs or next door.

The vacancy rate is still rising for the poor shopping centers.

However, in the three or four tier cities, the situation is different.

As luxury prices turn cold, many brands have abandoned plans for further sinking.

Those developers who want to win the luxury brand for their shopping centers can only try light luxury and fast fashion brands at the moment.

For Wanda Commercial real estate that is sprinting on the market, their partners in the three or four tier cities are mainly local fashion brands in China, as well as the fast fashion brands in Europe and the United States, which are making deeper progress in localization.

The total price of these brands is more close to the people, and can play a role of attracting popularity in the three or four tier cities.

For wealthy groups in the three or four tier cities, luxury consumption is not convenient enough. They usually go shopping in North China, Hongkong, China and overseas.

Luxury e-commerce has played a complementary role in this demand.

With the beginning of cross-border electricity supplier, domestic consumers can directly place orders for luxury goods abroad, which will have another impact on the physical stores.

Tax relief may make the price of this commodity more favorable and lower than that of physical stores.