Baleno Has Been Squeezed Out Of Chun Xi Business Circle. Traditional Clothing Manufacturers Are Facing A Brand Crisis.

In June 26th,

In Chengdu Chunxi Road business circle closed, there is only one shop in the shop.

In 2006, Huang Bo's "Baleno" in the movie "Crazy Stone" became a classic line of advertising.

Used to be the post-80s generation.

But it failed to continue the classics.

Due to poor operating conditions, the last Baleno store in Chunxi Road was closed by the end of May. So far, there are no Baleno stores in Chunxi Road business circle. There are only a few square meters of shops in a shopping mall.

In 2014, Baleno had 4 stores in Chunxi Road, and it closed all the time in less than two years.

250 million Baleno changed hands

Baleno was born in 1981 in Hongkong brand, and was bought by Germany Yongjia group in 1996. After entering the mainland market through new packaging, it was sought after by young consumers after 80, and almost entered all the core business circles of big cities.

In 2012, 4044 of Baleno's stores in the mainland reached the peak of development. However, the crisis behind the boom also approached.

The backlog of inventory has become Baleno's biggest worry. In March 2014, the inventory of German Yongjia was up to HK $1 billion 898 million.

Subsequently, Baleno stores in the country to save the brand. As of September 30, 2015, the sales volume of Baleno's mainland market increased by 3% to HK $1 billion 768 million, and total sales increased by 0.5%. But this is almost negligible. It also means that the strategy of closing the deficit stores for growth is invalid.

In January this year, the controlling shareholder of Baleno group, the 64% controlling shareholder of the company, announced that Baleno Kingdom Ltd, a non wholly owned Affiliated Companies, was selling RMB 250 million yuan to Shanghai Hui Industrial Co., Ltd.

De Yongjia's explanation is that Baleno group is currently optimizing reorganization and selling to optimize resources.

Baleno has been squeezed out of Chun Xi business district.

In July 2014, a press survey found that Baleno, who once had 4 stores on Chun Xi Road, is now left alone in the northern section.

Two years later, the store also declared closed.

Baleno store clerk, located on the four floor of Chunxi Road Baisheng mall, told reporters that the store was closed in May this year.

A map software shows that there are still two Baleno stores near Chunxi Road, but reporters found that these two locations store brand is not Baleno.

"Now the central city is the only one of us, other stores have moved to the two or three ring."

Baleno's salesperson said so.

Traditional clothing manufacturers face brand crisis

Apart from Baleno, Giordano, burshlung, Metersbonwe, Semir, YISHION and so on are not very good.

After the 2014 performance crash, Giordano shut down 190 stores in one breath at the same time, and the Hong Kong listed companies's burshilong recently released a performance warning. The first half of 2015, which was released by Smith Barney, showed its net profit fell by 152.98% over the same period last year.

According to the analysis of the industry, Baleno and other Hong Kong leisure apparel brands were attacked by Metersbonwe and so on. After that, they also faced the impact of international fast fashion brands such as Zara, H&M and UNIQLO. Now, with the fast fashion brands speeding up in China, the market space of Baleno and Metersbonwe has been squeezed further.

In addition, the rapid development of e-commerce channels to the traditional retail impact and subversion is also quite obvious.

Ran Lichun, Secretary General of Sichuan chain chamber of Commerce, said that "Baleno's marketing was written into textbooks more than ten years ago, but it has not improved in the past few years."

Brand strategy expert Li Guangdou also said, "only the bargains that can not be sold, there is no high priced goods that can not be sold.

The essence of a brand is to give people a reason for consumption, and guide people to pay for the high premium.