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    Closing Shop Tide Aggravated Eight Licensing 40 Shops

    2016/6/15 12:18:00 38

    Luxury GoodsShop TrendMen'S Wear

    Since last year

    Luxury goods

    brand

    Closing shop tide

    Still increasing, statistics from overseas banks and data analysis agencies show that a number of mainstream luxury Brand Company have been closed to different levels worldwide in the first quarter.

    Men's wear

    Zegna, a luxury brand, topped the list.

    In the past, the era of making money by opening shop is gone.

     Two

    Closing shop tide aggravated eight licensing 40 shops

    In just 3 months, eight major luxury brands have closed nearly 40 stores worldwide.

    The data of Paris bank and RE Analytics show that the global luxury stores in the first quarter are aggravated. Among them, Italy menswear luxury brand Zegna (Zegna) has become the top number of Customs stores, and has 15 stores; Italy's leather goods and fashion luxury goods brand Gucci (Gucci) ranks second, and the number of stores closed to 6; Italy luxury brand (Bottega Veneta) stores 5; Italy's luxury brand, Prada (Prada) group's secondary line brand Miu Miao (Miu Miu) 4 stores; Louis Weedon (Louis Vuitton Vuitton) and Italy luxury leather brand brand "2" respectively.

    The luxury brand shop began to spread as early as the end of last year. Louis Vuitton closed some stores in the North China market, and after closing the Shanghai LV building, Dior (Christian Dior) also withdrew from the Guangzhou market.

    According to RET Rui Yide, China commercial real estate research center, last year, there were 34 luxury stores, such as Louis Vuitton, Gucci and so on, and there were only 14 outlets in 11 new luxury stores.

    Among them, Louis Vuitton is the most powerful shop. There is news that Louis Vuitton will close about 20% two or three line city stores in the first half of this year.

    Demand for men's clothing in the worst hit areas

    In the tide of luxury brands, men's clothing brands become the hardest hit areas.

    The above data show that in the first quarter, Zegna closed 15 stores worldwide.

    Not long ago, Gucci also closed the only professional menswear store in Europe, Milan, Italy.

    Two or three years ago, a group of luxury brands used men's clothing as a new growth engine to replace women's clothing business, including Louis Vuitton, Kai Yun group, Hermes and so on.

    Brand targeting high-end male consumer groups, but also aimed at the Chinese market.

    Data show that the largest single market of Zegna in China, the size of the market almost accounted for the brand 1/3.

    The chief executive of the brand global has also publicly stated at the beginning that the Chinese market is extremely important for Zegna.

    China's men's wear market has declined sharply.

    Not long ago, Zegna released 2015 fiscal year performance data showing that revenue was 1 billion 260 million euros, an annual growth of 4%, core profit of 146 million euros, a year-on-year decline of 21%, and net profit fell by 45%.

    In the earnings report, it explained that in the past, the market in the Greater China region with high gross margins contracted.

    In addition, Hugo Boss, the main Menswear, has also been dragged down by the Chinese market.

    Its recent quarterly results showed sales of 642 million 600 thousand euros, down 3.7% compared to the same period last year, net profit decreased by 37 million 100 thousand euros, or 49%, the lowest in the past six years.

    And put forward 20% in the Chinese market, cut 30%, hope to tide over difficulties.

    Yang Dayun, President of the excellent international fashion brand investment company, said that Chinese people never wore the habit of wearing suits. They used to customize one or two suits of high-grade suits in the wardrobe, and they would wear them when they needed them.

    With the change of some concepts in China's workplace and officialdom, the management of foreign luxury men's wear is very difficult, and the future is likely to be even more difficult. The demand for high-end men's clothing is shrinking.

    Bid farewell to real estate dividends high cost

    The analysis pointed out that luxury brands in China and other increasingly mature emerging markets, will bid farewell to the previous opening shop that is the era of making money.

    Yang said that in the past 8-10 years, luxury brands can make money in China, not relying on their own business capabilities, but rather enjoying the bonus of appreciation of commercial real estate projects.

    New shopping center projects often rely on the entry of well-known luxury brands to drive other brand investment to follow up, and to promote the development of the project rent water.

    In order to attract the brand, the real estate project owner often gives the brand a good condition to give the decoration fee, and some of the properties will give the brand a discount of zero rent within three years.

    It is understood that the decoration cost of luxury stores is about tens of thousands of yuan per square meter.

    In this context, luxury brands create profits for every new store they sell.

    Nowadays, the market is reversed, and many properties have recovered the favorable conditions for opening the store. This means that the brand needs to undergo an average of three years or so to achieve the profit of the new store. Therefore, we need to carefully select the location and consider the ratio of input to output.

    Part of the stores that recover rents, if sales are poor, begin to consider closure and integration.

    Zhou Ting, the dean of the Institute of wealth and quality, has said that in 2015, 83% of the luxury brands will be closed in China in various ways. In 2016, more than 95% of the brands will choose to close some stores strategically, and the tide of closing stores will intensify.

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