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    Chanel LV And Other Clothing Brand Performance Is Totally Uncompetitive ZARA

    2015/6/19 17:46:00 100

    ChanelPerformanceZARA


    According to reliable sources, the phenomenon of luxury stores closing in the first quarter of this year continued, for example, Prada The number of stores in China reached 33, compared with 49 in 2014, while the number of Armani stores decreased from 49 to 44, while the number of Chanel stores was 11, with a closing rate of more than half.

    This month, David Tang told the Financial Times: "China's luxury retail industry is slowing down, and many luxury stores are expected to close. In the next two to three years, it will be the winter of Luxury Retailing. "

    But this view is not shared by all. China's Carlby Xie believes that luxury brands will not close Chinese stores.

    David Tang is the driving force behind the Shanghai Shanghai (Shanghai Tang), and his prediction is obviously closer to reality. There is no doubt that luxury brands are being withdrawn from the Chinese market.

    This does not mean that Chinese consumers are right. Luxury goods The desire to reduce their consumption accounts for 46% of the total global luxury consumption, but their purchases outside China account for 76%. As Xinhua reported, "Chinese designer shops are only pavilions and fitting rooms for consumers."

    In the future, luxury stores in China's two or three tier cities will be closed. However, the flagship stores in Beijing and Shanghai will remain so that the rich can find the goods they can buy when they go abroad.

    In China, the high price of luxury goods brought by high tariffs and the activities of combating corruption and fighting corruption have hindered the development of luxury goods. Last year, China's luxury sales fell by 1%, the first time in recent years. This year, the downturn in the luxury market will become more apparent. Many luxury brands have begun to discount in China.

    Eventually, luxury consumption in China will return, but at the same time, Chinese shopping malls will still bring high-end retail space to the market like today. In the next three years, 55 new shopping centers will open in Shanghai.

    Who will occupy these spaces? In China, the queen now wears Zara. It is easy to see that store operators are seeking the protection of "fast fashion" brand. According to the report of Shanghai Jones Lang LaSalle, H&M will open 80 new stores in China this year, while Zara is expected to open 60, and 100 will be built in UNIQLO.

    Forever 21, headquartered in the US, has 9 stores in China and plans to add more than 50. Gap has opened 32 stores since 2013. Banana Republic plans to open its first store in China next year. In the next five years, Zara will be everywhere, and so will UNIQLO.

    Jones Lang LaSalle's report points out that "to drive the flow of people in the mall, operators need to introduce fast fashion. In some cases, they require fast fashion stores to be located next to luxury stores. Gucci is usually opposed to opening stores near Gap, but in fact, high-end retailers need fast fashion with attractive traffic.

    Besides the trouble of luxury industry, shopping center operators are now facing the "Alibaba" problem. Ma Yun's company has completely changed the retail environment in China, and managed the brilliant Jingdong mall to accomplish this amazing transformation. Electricity business turnover grew by 11%.

    Unknown fashion brands are being sold on e-commerce platforms, and the mall has lost the demand for offline terminals. As the luxury industry is "weak", high-end store businesses are also running away. As a result, Zara and its competitors today enjoy more bargaining power, requiring better shopping space and rapid expansion in China.

    Comparatively speaking, the whole fast fashion industry will benefit from the slowing economic situation. Usually the market contraction will affect the intermediary business, but the acceleration and deceleration of China's economy seems to be conducive to the development of fast fashion. In the future, nothing can stop fast fashion brands, and all stores must cater for their needs.

    Besides, there is another factor that will push China forward. Fast fashion Development. Brands will no doubt realize that the development of their Chinese stores will eventually stimulate the sales of overseas stores. Because with China's outbound tourism and the increasing number of immigrants, people will tend to buy brands that they already know abroad.

    The phenomenon of overseas shopping is very common. The foreign exchange administration of the United States said that overseas consumption of Chinese tourists was about 165 billion dollars in 2014, an increase of more than 28% over 2013. According to market research firm Mintel Group, last year 85% of overseas Chinese travellers bought clothes and shoes. In a sense, this is good news for Chinese market operators: another new reason for fast fashion brands to open stores in China.

    All these indicate that the phenomenon of irrational consumption of Chinese luxury goods has changed. At the same time, all luxury brands should also think about their future.


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