Luxury Goods Farewell To Real Estate Dividends Market Reversal

A few years ago, the phenomenon of a large number of clothing industry is still continuing.

As the most popular brand in men's clothing market, YOUNGOR has closed 57 stores in the first quarter of this year, and 38 stores in Hai Lan's home, while the number of Customs stores in the first quarter has reached 100, 148 and 176 respectively in the first quarter.

In 2015, 83% of the luxury brands in China will be closed in various ways. In 2016, more than 95% of the brands will choose to close some stores strategically.

Closing a shop, or a sad exit, means breaking the arm to save oneself, or means shifting the center of gravity, or means mediation.

Due to the rapid expansion of the previous channels, some brand clothing enterprises can not bear the pressure of rising costs due to the sharp increase in the number of shops, plus high inventory and land rent rising.

As shown above, in the first quarter of 2016, the number of the number of switch shops in the 12 garment enterprises listed by the reporters was more than half of the number of shop outlets.

In the first quarter of this year, 57 stores were closed for the company's strategic structure of "opening a big store and setting up a hall".

Among them, 947 self operated outlets, 22 more than the beginning of the year, accounted for 42.9% of sales revenue, 1794 of shopping centers, 51 less than the beginning of the year, 46.8% of sales revenue, 461 of concessionary outlets, 6 less than the beginning of the year, and 9% of total sales with group buying businesses.

At the end of the first quarter, the number of stores in the country was 3202, and the list was ranked third in addition to the family of "noble bird" and "Hai Lan".

Apart from men's wear, YOUNGOR, Daphne, KISHIN bird and AOKANG international are also staggering in the first quarter.

There are 176 stores in Daphne, 148 in Guan Nan Guan Guan and 95 in AOKANG.

In the number of new stores, Hai Lan's home opened 273 stores in the first quarter.

Among them, Hai Lan's home has 1 outlets, 189 stores and stores, and its brand.

There are 43 and 40 stores and bazaar shops.

It is said that these data indicate that the clothing industry is still in the cold winter.

In the view of Chen Guoqiang, vice president of China clothing association,

The demand has been growing, the industry is not "cold", and a large number of closing problems are because some enterprises are not doing well in innovation and pformation and upgrading.

"For example, it has invested in real estate, invested in the stock market, invested in shipbuilding and so on.

Its focus is not enough, its pformation and upgrading is not enough, so it will go downhill.

On the other hand, some enterprises in the current market consumption changes, the degree of fashion, information technology, the structure of the industrial chain is not enough.

Last year, China's economic slowdown and sustained anti-corruption activities brought a significant blow to the luxury brands that were active in China's early opening up.

Louis Vuitto closed the 3 branches in Yuexiu District, Harbin and Urumqi, Guangzhou, and according to industry analysis, before 2016, LV will cut 20% of the Chinese branches, which is equivalent to about 10. At present, LV has about 50 specialized stores in China.

According to the global luxury market monitoring report, the number of luxury brands such as Prada and Gucci in China is also decreasing, and many international luxury brands are reforming their distribution in China.

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.

In the first quarter of this year, Italy menswear luxury brand Zegna (Zegna) became the top number of Customs stores, and closed 15 stores; Italy leather goods and fashion luxury brand Gucci ranked second; the number of outlets was 6; the Italy luxury brand Veneta (Bottega Veneta) closed 5 stores; the same as Italy luxury brand, Prada (Prada) sub line brand Miu Miu (Miu Miu) 4 stores; Louis Weedon (Louis Vuitton) and Italy luxury leather brand Tod "s" 2 stores respectively.

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.

In the past 8-10 years, luxury brands can make money in China, but in fact they do not rely on their own business capabilities, but rather enjoy the bonus of appreciation of commercial real estate projects.

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.