Excessive Pressure On Luxury Brands, Ushered In A Wave Of Discount

Recently, reporters found

It's just been over the middle of the year, why don't we have to discount all year round? "

In foreign countries, luxury brands usually have two large-scale promotions in a year, one arranged around Christmas day and February next year, and another in 6-7 months. The sales promotion nodes of fast fashion brands such as GAP, ZARA and so on are basically the same.

In the past, apart from participating in festival activities and seasonal promotions, there were few spontaneous discount promotions.

In the industry view, the initiative to reduce prices in the non promotional season shows that the clothing industry is still facing greater pressure.

The store has just completed the year to promote another round of brand discount.

The retail circle in June was very lively.

In terms of time, the first half of the month is

The price PK competition, and then the promotion boom spread to the line, shopping malls and shopping centers competing to participate.

In order to lengthen the activity time, some shopping centers started the annual mid year big promotion in mid June.

"It has just been bombed by the sales promotion information in the mall." I thought the wallet could rest for a while. When I looked at the mall, I found myself thinking more.

Zhang Xiao said, "a few days ago, shopping malls in the middle of the year rush to buy a pair of shoes in hot air, today passed by and went to have a look, it was still the promotional price at that time."

Tianhong shopping center, Xixi impression city and other shopping malls in the middle of the year to promote "smoke is not dispersed", the discount sales promotion brand is dominated by less ladies dress, hot wind and other brands still maintain the annual price of time, "full to reduce" and other concessions, Eve and other brands hang the detailed discount information at the door, the intensity is not small, roughly 50 percent off -8 discount.

"The two floor retail block is also like this, a bit like the two reduction season abroad."

"Before, even if there are discounts, most of them are relatively low-key, and now they are afraid that customers will not know," said Qi manager of Tianhong shopping center.

Domestic clothing enterprises are generally faced with high storage pressure. In order to solve the problem of capital turnover caused by high storage, many enterprises try to open online shops, and enter into electricity suppliers, discount stores or ole stores.

Enterprises are worried about the negative impact of "self depreciation" on brand image. Therefore, the "special contributions" of lower prices and similar styles are launched for these non-traditional channels, while the "special funds" sold in shopping centers and department stores are not easily discounted in addition to participating in festival celebrating activities and seasonal promotions promoted by shopping centers.

Slowdown in domestic fast market

Recently, management consulting firm Bain and Kay consumer index jointly released the 2015 Chinese shoppers report. The report shows that the overall growth rate of China's fast moving consumer goods market has been slowing down from 2011-2012 years to 12% or 4.4% in the first quarter of 2015.

"Consumer shopping habits change, online channel expansion and price changes all affect the growth rate of China's fast moving consumer goods enterprises."

According to Yu Jian, general manager of the China consumer index, the trend is forcing brands to quickly understand the market changes so as to successfully adapt to the new normal.

The target audience of fast fashion and less lady's clothing is young, middle income consumers. Their sensitivity to price is relatively high. Reducing retail prices is undoubtedly the most effective way to absorb these consumers.

The official said that at present, the department store industry has entered the weakest season of the year. Clothing enterprises can not wait for death. Instead of letting the goods continue to backlog this season, it is better to attract consumers through some substantial and rich promotional activities.

"For fast moving consumer goods brands, China's market competition pattern is quite different from other markets."

Bain, chairman of consumer goods, retail and luxury goods business in Greater China, said in the report that fast consumer company is exploring new competition models after the advantages of sales growth or price premium disappears, such as providing more promotional activities, stimulating the vitality of "Star" single products, or better managing costs.

Related news

The clothing industry is in a shop corner.

Influenced by a series of factors, such as high inventory, rising costs, low profits, and changes in consumption habits, the trend of China's clothing industry has become increasingly fierce.

The latest report of Bosideng, the largest feather clothing brand in China, shows that the total number of retail outlets in its down garment business has decreased by 5053 in March 31st compared with March 31, 2014, and the non feather down business has reduced 5106 stores and nearly half of the stores in the past year.

Revenue fell 23.6% in the fiscal year and net profit fell by 81%.

Previously, Baleno, JEANSWEST, Giordano, Busen, nine herd king, Aige, seven wolves and other leisure wear brands, as well as Anta, Lining, XTEP, 361, XTEP and other sports brands were large-scale closure of retail stores, closing a total number of stores up to tens of thousands.

Even in the Chinese market, GAP, the international fast fashion brand, has begun to scale down its stores on a large scale.

A few days ago, GAP announced the closure of 175 stores in North America, and will also cut 250 employees at headquarters. The number of closed stores will be about 1/4 of the total market volume in North America.