American Rag2 Will Open 40 Stores To Counter Speed Expansion.

With the continuous expansion of China's middle class population, the demand for product quality and the selectivity to international brands also increase.

At the same time, GDP growth was bumpy. In the second quarter of 2015, it only increased by 7%, becoming the lowest growth rate in six years, resulting in the depreciation of the renminbi.

However, this is no doubt a plus for the luxury brands that have lost profits in the past three years, but the days of non luxury brands are getting moist.

How big a factor can China's economic slowdown be? In the face of this problem, Caplowe has been very calm. "The overall slowdown is a blessing to us. If the market is booming, new stores will open every week.

So this situation is beneficial to us now.

The latest news is that twenty years after the Americans introduced their most popular street clothing brand to Asia, Peter Caplowe, the fashion consultant and founder of Evisu International, has accepted a new challenge and launched the multi brand store Rag American to the Chinese market.

The Losangeles store, known for its high quality jeans and traditional brands, opened its first branch store in China at the end of last month, and the Crystal Plaza in Nanjing West Road, Shanghai, has an area of 6500 square feet.

This move means two things: first, when retailers are skeptical of China's economic viability, they become the East Asian pivot of expansion and corporate strategy. Two, it is a sign that China's fashion industry has entered a new chapter: the rise of multi brand stores.

The founder of American Rag

And Caplowe think that the demand of Chinese consumers has fundamentally changed and the problem has not yet been solved. After 80, 90's consumers in China pursue individuality and comfort, not just the trademark of identity.

"We know clearly that we are pioneers and pioneers in the Chinese market.

We have a long-term plan to open a "go-to" store for the next generation of consumers who are interested in fashion and have free income to buy international brands, "said Caplowe, co-founder of The Hub, Hongkong's high-end fashion industry.

The number of mainland retailers who have experienced many international brands is still limited.

In Shanghai, Hongkong's high-end department store chain chain Crawford dominated, followed by a small number of local businesses, such as Aegis and I.T..

ARC plans to use a new business model customized for the mainland to give different positioning.

They aim to have broad and interdisciplinary appeal rather than regular customers.

They also want to play down celebrity endorsements, and more to build up the image of ordinary people.

Perhaps most importantly, China will operate as franchised rather than owners as Japan does.

The opening of the flagship store in Shanghai is the first step of the plan.

By the end of 2019, the goal of ARC was to open 30 to 40 branches in a second tier city in mainland China.

They will first open another smaller branch in Shanghai plus seven franchises.

They hope to open another three flagship stores in three years, first in Beijing, and then to

Hongkong or Guangzhou depends on the future rent of Hongkong.

"There's a lot of dealer capital there -- they are looking for something new and something new.

At present, franchisees seem to be stuck between the declining international brands of domestic brands and owners' business models, "explains Caplowe.

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Shops will bring many local designers' products to market.

Nels Fry, head of business development, said that Chinese designer CHUANGQUJ is the next noticing name.

QU, a former designer of Mark Fairwhale, recently launched the brand of the same name.

He also referred to Shanghai designer and cowboy expert HIUMAN, and Capitale Nord, and the designer of British-Swiss trademark who had settled in Beijing more than ten years ago and had a radiant force, and Kevin Tallon, the former designer of Balmain and Kappa.

The company also set up production bases for some foreign brands.

In the next few years, they plan to open more than five to six factories in Guangdong and Wuxi.

This is contrary to the practice of some other foreign brands. Other foreign brands are gradually reducing their orders in China due to the rising labor costs and slow economic growth in China, and moving to Vietnam or Bangladesh.