Mark Werts Unscramble The Next Stop Of Retail Sales

A talented businessman known as the international fashion industry.

In 1984, ARC opened its first store in San Francisco.

In 1997, seeing a large influx of funds from the west to Asia, Mark predicted that Asia would become a key area for future economic development and opened its first Asian branch in Japan.

At present, ARC has 20 stores worldwide.

He also authorized the trademark of chain corporation's Messi department store ARC, which can see the derivative line of ARC in more than 900 American Messi department stores, earning more than 600 million dollars a year.

In addition to offline stores, ARC formed an independent online store a year later after its alliance with fashion luxury accessories shopping center farfetch.com in 2009.

MW: in the past 15 years, capital has been shifting from Europe and the United States to Asia.

In three years, we will open 40 stores in China, with a total investment of 10 million US dollars in the first phase.

Among them, 3 to 4 500 square meters of flagship stores, 32 franchisees and 5 to 6 independent stores in large shopping centers.

The first store will be opened in Shanghai, while others will be in Beijing, Guangzhou, Shenzhen or Hongkong.

The new store will select fashion brands and designer brands from the US, Europe, Japan and China.

The selection of products mainly depends on the operation of the buyer team. China new store has an international background buyer team.

The mainland buyer worked in LAC, and was familiar with the Chinese market.

My partner in China is HUB, an exhibition company in Hongkong. They hold clothing exhibitions every year and can access brands from all over the world.

Of course, there will also be local brands.

Reporter: the cost of operating retail stores in China is getting higher and higher. Will it be too heavy to open so many stores?

MW:ARC has only become a multi brand seller in China.

It is not enough. We hope that we can learn from United Arrows and Beams's select store mode, allowing the existence of two modes of other brands and proprietary product lines, which can better expand the profit margin.

Owning private brands can better control marginal profits. Many stores do not have their own brands, and their marginal profits are limited.

My Chinese partner, Hongkong exhibition company HUB CEO Peter, understands the situation. The Chinese market is facing rising operating costs and complex procedures and high cost of import inspection. For example, every single item must pay the quality inspection fee, and the sample will not be returned.

So if you open a store, the cost of operation will be very high. Only by opening stores more quickly can we control the cost.

Reporter: how do we see the impact of online shopping on traditional retailing?

MW: the whole world has seen the development of online retail websites, and so is the United States.

10% of total consumption in the fourth quarter of last year came from online shopping.

5 years ago, the online share was only 4%.

Online business is also the fastest growing segment of our company.

Now my view is that online shopping in China is very dependent on discounts. This will change. In the future, discount is only a small part of online shopping and convenience.

There is also the category of goods, for example, you don't have to go to the store to carry a lot of water home.

But when you want to buy a coat or skirt, you still want to go to the shop and have a look.

Reporter: as you once said, fashion is a reflection of society. The style of every city is different. ARC has shops in different countries and regions. How can a single shop cater for the style of the city?

MW: the core of each store is consistent, that is, the lifestyle of the United States of California combines international sense, tannin, retro elements, low price, medium price and luxury goods to maintain the 4:4:2 ratio of three kinds of goods.

We made some adjustments to different cities and regions.

For example, a shopping mall has more women than women, so we shop more women's clothing.

Prices will also be adjusted so that low consumption stores will produce more low-priced goods.

Reporter: why do Chinese fashion designers and entrepreneurs need to develop their businesses in the multi brand store system and compete in the global market?

MW: I am a director of University of Southern California, where 50% of the students are foreigners, and the largest foreign group is Chinese.

There are many Chinese in many top fashion colleges. What can they do after graduation? To develop in western countries, it is difficult for them to start their own business from scratch.

International brand integration is very relevant to the professional and experience of these people, so I think there are numerous opportunities for multi brand system in China, just like the success of other industries in China.

I think it's reasonable for these students to come back and create multi brand shops.

Reporter: do you think retail is entertainment and details? How are these points reflected in ARC shops?

MW: consumers will definitely want to go for a stroll instead of just browsing on the Internet.

To cater for the needs and lifestyle of consumers, you need to create a shop environment that is entertaining, changing and attractive.

Our shop will be decorated according to the local culture and characteristics, such as the Amoy helmet used in the second-hand market, pforming the old piano into a sofa.

The shop in Losangeles will open a "shop store" with Chinese designer's theme in May. It will hang the Chinese flag and a paper-cut portrait of Yao Ming.

Consumers will find it interesting to come to the store.