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    Clothing Brand Trapping Shop Chao Nine Mu Wang Closed 134 Stores In The First Half Year

    2014/12/15 20:42:00 29

    Clothing BrandNine Mu WangGuan Dian

    Reporters learned in the interview that the reasons for various brands to lose weight are not the same. However, the excessive homogenization of their products makes it impossible to ignore the price war.

    "The current closing shop tide should be a return to reason from a certain aspect, but this price is too great!" the clothing industry securities analyst commented.

      

    Fashion brand

    Giordano

    They encounter fierce electricity supplier

    Miss Qin, who lives near the people's University, found that the popular clothing stores in the past year are vanishing one by one.

    Giordano, Baleno, JEANSWEST and other fashion brand stores that used to be very attractive to college students used to be crowded around the University District in Haidian District, Beijing, but now many shops are already empty.

    "Even many old shops that have been open for more than 10 years have disappeared. Those were the hallmarks of our university."

    Miss Qin told the Beiqing Bao reporter.

    In fact, not only around the University, many careful people who often stroll in the big shopping mall can also find that these brands that used to occupy the youth clothing floors of large shopping centers have disappeared as well, and now the density of these brands in the shopping malls and commercial streets in Beijing has been significantly reduced.

    By the end of 6 this year,

    Giordano

    There are a total of 1066 stores in the mainland, and self run stores and franchisees basically account for half of the total number of stores, and the latter number is slightly more than 60.

    Previously, the financial statements released by Giordano showed that 95 stores were closed in the mainland in the first half of this year, of which the number of disappearing franchisees was significantly more than that of self operated stores.

    Behind the frequent closes is its sustained decline in sales in the mainland. In the first half of this year, Giordano's sales in the mainland dropped by 6% compared with the same period last year, and its profit dropped by 49%. JEANSWEST closed 213 stores in the second half of last year to the first half of this year, 193 of which were self operated stores, while its sales in the mainland also decreased by 15%.

    "

    Online retailers

    The impact on us is too big. This kind of clothing, which has a certain brand and low price and is the main consumer group of young people, is the biggest impact on the online sales. "

    A Giordano store manager told the Beiqing Bao reporter that the diversion effect of online shopping was particularly evident in the past two years. Many young people, including college students, no longer came to shop but used to buy clothes on the Internet, which seriously affected the sales of physical stores.

    The decline in sales of Giordano's physical stores can be verified from its earnings report. In the first half of this year, Giordano's comparable store sales decreased by 4% on average, while the single store sales in the mainland dropped by 5%.

    The store manager said that sales of his store had dropped by at least 30% in the past three years.

      

    Haidian District

    Store rents rose 10% annually

    It is understood that fashion brands like this have strict standards for location selection and storefront decoration, such as passenger flow and business atmosphere.

    But these hard targets directly push up the cost of store rents.

    In the past three years, the rents in Haidian District's colleges and universities have been rising at a rate of 10% per year, even though they are benefited from the original long-term contracts. "Otherwise the rent will not rise below 20% every year."

    Sales decreased significantly, shops and labor costs went up all the way, and the profit margins of these garments were constantly being compressed.

    Giordano's earnings report showed that its clothing cost increased by about 12% in the first half of this year, but its selling price rose by only 4%, leading to a reduction in profit margins.

    This is also increasingly pressing against the survival space of these entity stores.

    The store manager, who has joined the store for nearly 10 years, told the Beiqing Bao reporter that the most golden period of fashion brands like Giordano was from the end of 90s to two thousand years, when she caught up with herself.

    She said that if the situation did not improve, she would certainly not do so when the lease expires at the end of next year.

    In her mind, it is almost impossible to improve the situation.

    Other fashion brands that have always been similar to Giordano are facing the same situation.

    Data showed that the company closed 88 stores in mainland China only half a year ago, and the number of Baleno's outlets in the mainland and Hong Kong, Macao and Taiwan reached 465.


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