Martha'S Fast Fashion Debate In China

As a matter of fact, Martha's department store can not be simply attributed to the downward trend of the overall department store format, because unlike Martha's department store, which was established in 1884, has always been the representative of the self operated mode, which is different from the joint mode of many department stores in China. With its low price and high profits, its own brand has risen rapidly in the global retail market, and its self-designed clothing is its most reliable commodity category.

Therefore, Martha once became the "fast fashion" gathering place, and has been competing with ZARA, H&M and other brands.

Such competition is also clearly brought to the Chinese market.

Take Martha's department store flagship store in Nanjing West Road, Shanghai as an example. Around it, GAP and H&M opened two flagship stores, and farther away, they were famous for their fashion buyers.

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In the industry view, Martha department store nuggets in the Chinese market, the rigid business strategy makes it very passive.

It has entered the Chinese market for nearly eight years, but most of its products are copied from European fashion. First, it is not suitable for Asian people. Two is also very outdated in design.

After years of development in the Chinese market, fast fashion has shown a strong "two stage effect".

One side is represented by ZARA and H&M, its performance is doubling every year, and stores are everywhere.

On the other hand, such as Esprit, brand upgrading is slow and new product turnover speed is not strong enough. This kind of brand is in the downside of competition, the performance continues to decline, and the number of stores is decreasing.

Unfortunately, it has become the latter category.

Susan pointed out,

The main department's operating profit comes from the efficiency of inventory trading, so it is very important to accurately grasp the preferences of target customers, adjust the flexibility of goods and maintain customers.

Under the impact of the electricity supplier, the abundance of goods no longer has an advantage. In the fast fashion competition, if it can not be adjusted in time, it will affect the overall operation of the brand.

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Reed Krakoff will suspend all the design and production of the brand. Its store in New York Madison Avenue Madison Avenue will also be closed. However, Woodbury Commons and new Greene Street stores and online sales website reedkrakoff.com reedkrakoff.com will continue to open in January this year.

At the same time, brands will also consider strategic options including sales.

At the end of last year, the market has already heard that the brand of Reed Krakoff will be reorganized and layoffs. At that time, a brand spokesman admitted that it was repositioning the brand and changing the product category, but there was no plan to terminate the garment business.

In 2010, Reed Krakoff, as the creative director and chief executive of Coach Coach (Inc.) (Coach), established the Brand Company Reed Krakoff Investments LLC under the "hatching" of the latter, and gradually established a complete category including garments, handbags, watches, jewelry and shoes, and developed three independent stores, with around 130 sales outlets worldwide. The distribution partners include high-end department stores such as Saks and Bergdorf.

After resigning from all duties of Coach Inc. Coach group in April 2013, Reed Krakoff, together with Venturehouse Group LLC LLC founder and chief executive Mark Ein, Danaher Corp, co founder, Ein, and the fund of the company, purchased $10 to Coach Krakoff.

However, the buyer assumed all the debts of Reed Krakoff Investments LLC, and Reed Krakoff gave up the salary and bonus from Coach Inc., and the total paction price was about $50 million.

After the paction, Coach Coach Inc. still retained a minority stake in Reed Krakoff Investments LLC.

After the completion of the delivery, Reed Krakoff Investments LLC CEO Valerie Hermann said at the time that because of no debt problem, the brand could accelerate expansion, and the most important thing is to base itself on the US market.

Reed Krakoff handbag products are the main source of sales, accounting for about 70% and 20% of garments. Market participants estimate that the annual sales of Reed Krakoff will be about 45 million dollars, and the operating cost will not be as high as 30 million US dollars.