High Land Rent Does Not Guarantee That Shops Will Be Turned Into Profits.

The fashion brands such as Erdem, Christopher Kane, Simone Rocha and Hussein Chalayan have opened their first flagship store in the elite areas of London. Are they worth investing in the double auction of sky rent and customers who are accustomed to online shopping?

The first flagship store of a brand is a turning point in its fashion industry. Direct retailing enables a brand to introduce consumers, obtain sales and gain more profits than previously shared with wholesalers.

The only cost is astronomical rents, not to mention investment in finance and logistics, the cost of employing employees, and inventory.

When the fierce competition for site selection will bring these

When some of these cases become "non present", the impact of opening time on brand is very significant.

This year, the brand of Simone Rocha is already five years old; Roksanda, Erdem and Christopher Kane have opened their flagship stores around the time of their brand 10th anniversary; the first shop of Hussein Chalayan is the arrival of another era: that is the 21st anniversary commemoration of the brand.

Before the opening of Christopher Kane's store, Kering group became the main shareholder of its brand in 2013.

"There is a shop in every city in the world, which is the dream of every designer," Christopher Kane said.

Roksanda also did, shortly after the first investment from Eiesha Bharti Pasricha, a India businesswoman, opened shop.

and

The business is expected to earn a profit of 10 million pounds, and its flagship store is privately funded.

For Roksanda, Christopher Kane and Erdem, more physical store plans are brewing, but designers are still cautious about opening time and location.

Mayfair in London is the place where all these brands set up their first store, but this does not guarantee that the shops will be turned into profits. Market sources say that some brands are not doing well in sales.

"Usually, these single brand shops are not profitable, but they can be the reception of all the" fashion houses "private customers and celebrity customers," said Luca Solca, director of the luxury department of Paris securities and banking department. "If you have only one store, you may want all the" fashion house "customers to come to the store.

"The strategy of Mount Street and South Audley Street is to attract the highest grade and first store brand, aiming at younger, brighter and more interesting brands," said Haydn Cooper, location director of the Grosvenor estate developer in Mayfair.

Today, the well-known businesses in Mount Street include C e line, Balenciaga, Christian Louboutin, Lanvin, Oscar de la la, and "-" and "Qi" will also open shop here.

In Audley Street street, Erdem's neighbors include

Rick Owens and watch brand Bremont, Hussein Chalayan in Bourbon Street shop is located next to the Dunhill membership club.

In August of this year, Alexander Wang opened the world's largest flagship store (the first European flagship store) at 43-44 Albemarle street, London. The rental of the more than 600 square meter three storey shop is about $1 million 900 thousand a year.

Albemarle street is located in the Mayfair area, which is located in designers and luxury boutiques. It is understood that this street is adjacent to London Fashion and luxury center Dover Street and Bond Street, adjacent to Paul Smith flagship store, Browns Hotel, Amanda Wakeley and some small galleries.

By choosing such an elite shop address, designers are not only calculating sales volume, but also calculating their status.

First of all, build a DNA of your own brand, then the brand identity and product range will take many years.

The first shop also opened a dialogue between the brand and its consumers: a designer can test his product, get first-hand feedback, clarify their product classification, and have full control of the display, sale and discount of the product.