Luxury Goods No Longer Sing "Ode To Joy". How Do Clothing Brands Get Consumers' Attention?

In May 5th, the largest MontBlanc store in southern China was shut down to become the latest case in Guangzhou.

At the same time, the recent performance reports released by several clothing brands show that the net profit of last year's most profitable fast fashion brands has fallen, and since last year, many garment enterprises have reduced their retail terminals.

Then, under the new normal, what kind of brand can get the attention and recognition of consumers? What brands are most worthy of the introduction of shopping centers? Insiders say that the first thing to plan a project is to determine the target consumer group, then identify the unique theme of the project, open up the difference with competitors, and then have the bright spot and scale layout and decoration atmosphere, and dare to absorb the new brand in the market, bringing new and refreshing feelings to consumers.

Luxury goods no longer sing.

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The largest MontBlanc shop in southern China was closed in May 5th. The store is located in Tai Koo Hui, Guangzhou, which is divided into two floors, with an area of 557 square meters. But it has been closed by white wallpaper.

For those who make up the position, Guangzhou Taigu Hui official said it is not convenient to disclose.

According to public information, MontBlanc's performance began to decline in 2014, the main problem is in China.

In fiscal year 2014, MontBlanc's sales volume was 730 million euros, down 4.7% compared with the same period last year, and operating profit dropped to 43 million euros, down 64% from a year earlier.

Coincidentally, at the end of last year, LV shut down three stores in Guangzhou, Harbin and Urumqi. In February this year, it closed its store in Li Bao Plaza, Shanghai.

In December of last year, Prada announced that the net income of the company fell by 26.4% in the 9 months to the end of October 2015, which was only 235 million euros, of which mainland China, Hongkong and Macao had plunged 26%. This is the biggest single quarterly decline in the year, which disappointed many investors.

What's more, Burberry shut down the sub line brands last year, and Tiffany announced layoffs.

According to a survey, 39% of Chinese rich people no longer think that LOGO is the focus of attention. Most luxury goods seekers are seeking overseas purchasing.

Luxury goods no longer sing "Ode to joy" in the Chinese market.

Indirect effects: luxury stores are constantly closed, so that shopping center operators have to think about how to adjust their business structure.

In fact, in Guangzhou, people's consumption habits gradually change from shopping to more experiential consumption. Most consumers go to shopping centers instead of entering brand stores to buy and buy, but they buy something by playing.

Strategy 1, increasing experience format is a major trend.

Sun Jinghuan, vice president of Guangzhou Xiang Neng group, said that the core of commercial real estate is commerce, and human and consumer behavior patterns need to be studied.

This is an era of personalized pursuit, which enables the market to gradually shift from the large and full market demand to the niche market, in order to adapt to consumers' increasingly fastidious tastes and pursue different lifestyles and seek dislocation competition.

Sun Jinghuan pointed out that there are mainly two types of customers in shopping centers: the first is the younger group which is more fashionable, and the second is family oriented customers.

Therefore, to plan a project, the most important thing is to determine the target consumer group, then determine the unique theme of the project, open up the difference with the competitors, and then have the bright spot and scale layout and decoration atmosphere, and dare to absorb the new brand in the market, so as to bring new and refreshing feelings to consumers.

Sun Jinghuan said that increasing the experience format is the main trend of the shopping center pformation. In the final analysis, increasing the sense of consumer experience is a fatal weapon to improve the shopping center's passenger flow and consumption.

First of all, experience formats can further broaden our thinking from the simple operation category.

For example, catering industry is more and more

Combine to realize Internet reservation, order and so on.

Children's format breaks the pattern of children's entertainment and early education.

With the times, we have increased programs such as air farms, sports training, etiquette counselling, and so on, so that family customers can be changed from "single child consumption" to "family mobilization".

"If we only expand the scale blindly and expand the proportion of experience formats, there will be a risk that developers will lose their profits."

Sun Jinghuan said, "the starting point of introducing experience formats and characteristic formats is attracting people. But we still need to carefully consider the cost and revenue, control the proportion of each format, and promote the overall value of the project."

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At the same time, Sun Jinghuan pointed out that shopping experience not only refers to experience formats, but also contains all attempts to enhance customer experience.

For example, many brands in the clothing retail industry recently launched the virtual fitting mirror, which enables consumers to get a better retail experience through this digital technology, or to build a strong sense of experience project such as AR interactive screen, and provide personalized service to enhance the consumer experience.

More home service enterprises, terminal stores to reduce

In addition to luxury brands, the clothing market in 2015 was also "embarrassed". Bosideng, seven wolves, nine herdmen, Mei Bang dress, Daphne and other brands were shrouded in a "closed shop tide".

From a recent wave of clothing brand performance report, we can see how bad the business of the clothing market is.

The most profitable fast fashion brands, which were once the most profitable fast fashion brands, fell in the net profit last year: the fast selling group of UNIQLO parent company slumped 55% in the first half of the year, the worst in five years; H&M's net profit in the first quarter also dropped by 30% compared to the same period last year; GAP was even worse, its net profit plunged 33% in the same period.

In the first quarter of this year, the number of domestic clothing brands has also declined. The reporters found that among the 8 clothing listed companies, YOUNGOR, Semir, seven wolves, nine shepherd, red bean, red bird, Meyer and so on, only three birds, Semir and nine herdwang enterprises have achieved double growth in operating income and profit, of which the net profit growth of 9 Mu Wang is only about 0.4%.

In addition, clothing enterprises can not be ignored.

There are 71 new retail outlets in 2016, closing 148 retail terminals.

As of the end of the reporting period, YOUNGOR's sales outlets decreased by 35 compared with the beginning of the year.

Meyer brand joined franchise stores to close 2 stores.

There are 12 new stores in the nine branches, but 23 are closed, 28 new stores are open, but 44 are closed.

Giordano international closed 81 stores, and Baleno, once a hit, sold for 250 million.

However, sports brand performance slightly recovered, Anta, Lining, XTEP, 361 degrees, PEAK, China trend (Kappa), basically achieved a double growth in revenue and net profit.

Analysis of the reasons: Huang Wenjie, executive director of Guangdong provincial circulation business association, said that the total sales volume of the entire clothing market is flat, but it is specific to the problems of various clothing stores. In other words, the competition of homogenization is the same. The brand itself stores too much, and it also divides itself, and the same type of brand will also lose profits.

Countermeasure 2, adjust from four aspects.

What adjustments should the shopping center take in introducing the clothing brand? Huang Wenjie said there are four points. First, the star effect is introduced to introduce fashionable clothing brands that are closely related to the stars, such as the brand or style of a popular Korean star.

Close together with the well-known designers to promote exclusive style, is also a selling point and characteristics; second, it is recommended to introduce brand discount stores, such as the OUT store on the seven floor of Tianhe City, the friendship shop, and so on. These discount stores are relatively inexpensive, and the sales volume is better. Third, the introduction of new technologies, especially the shops that can effectively interact with the Internet, to achieve good interaction between the physical shops and online shops; fourth, cross boundary integration, providing more services for consumers, such as Starbucks and UNIQLO "marriage", selling coffee in the clothing store, H&M selling household products in flagship stores, and Metersbonwe, who is committed to building O2O mode, has also opened book bar and coffee bar in flagship stores. There are topics selling clothing, or exclusive procurement of goods, including fast fashion brands to high-end direction.

Part of the first quarter results of domestic garment enterprises

Good news bird: revenue 475 million yuan, 18.41%; net profit of about 9 million 500 thousand yuan, 86.16%

Meyer: revenue 130 million yuan, 6.98%; net profit -447 million.

Seven wolves: revenue is about 700 million yuan, 11.05%; net profit about 60000000 yuan, 5.18%

YOUNGOR: revenue 5 billion 560 million yuan, 11.41%; net profit 2 billion 447 million yuan, 76.30%

Red bean: revenue 490 million yuan, 15.35%; net profit 28 million yuan, 110.95%