Baleno Shanghai Has Been Reduced To Hongkong'S Clothing Industry.

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When it becomes the most popular clothing brand for young people nowadays, a brand that has been popular in the post-80s generation has to face the fate of being cheaply sold.

In 2016, the Shanghai Baleno Kingdom Limited was sold by the parent company Hongkong de Yongjia group at a price of 250 million yuan, the potential dealer authorized by Baleno and Shanghai Hui Ye Industrial Co., Ltd.

For the reasons for this sale, the company said that the company is restructuring, selling can optimize resources.

Coincidentally, Baleno's parent company, De Yongjia, is also one of the manufacturers of UNIQLO.

Shanghai companies are sold cheap

Founded in 1981 in Hongkong, Baleno was purchased by Hong Kong listed companies Germany wing wing group limited in 1996.

This brand once became a household casual clothing brand, also invited Andy Lau, Faye Wong and others to be the spokesperson.

In 2016, he announced that Baleno Kingdom Ltd, a non wholly owned Affiliated Companies, would sell all the shares of Shanghai Baleno Kingdom Limited to Shanghai Hui Ye Industrial Co., Ltd. at a cost of 250 million yuan.

In response to this sale, De Yongjia's response report said: "the seller (De Yongjia) is undertaking the reorganization of enterprises.

The sale of Target Corp (Baleno) can optimize assets and initiate the strategic development of the seller.

In addition, the buyer (Shanghai Hui Ye industry) is a potential authorized distributor of the seller.

The sale of Target Corp to the buyer can help develop strategic business cooperation between the buyer and the seller. "

Information from industry and Commerce shows that Shanghai Hui Ye Industrial Co., Ltd. has a very complicated business scope, including investment management, investment consulting, corporate image planning, computer hardware and software development, development, sales, daily necessities, hardware and electrical, chemical raw materials and products sales, as well as landscaping.

"Baleno in Shanghai is actually a sales company.

According to the current business situation, dozens of shops sell 2.5 billion, (De Yongjia) not only do not lose, and may even sell expensive.

Min Guangya, a retail expert in fashion and fashion industry, said in an interview earlier.

Closing shop is a big trend.

The golden age of Baleno was the 1995-2005 year event. At that time, domestic brand competition was not yet complete. Foreign brands had not yet invaded heavily. Baleno once dominated the central parts of the big cities. But due to the small variety of styles, Baleno would normally be divided into four quarters.

Such a new speed can not be compared with the fast fashion brands such as ZARA, which gradually come to lose its appeal among young people.

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.

In this regard, Baleno opened the store and strictly control the inventory of "SOS strategy".

In 2011-2015 years and four years, 617 stores were closed, averaging 12 stores a month.

As of September 30, 2015, the total number of Baleno stores decreased to 2849.

There are only 43 stores in Hongkong, 54 stores in Shanghai, and 56 in Beijing. Guangzhou is a little better and has 60 branches.

Even in the second tier cities, Baleno's situation has not improved.

In June 26, 2016, Baleno closed all in Chengdu Chunxi Road business circle, leaving only one store in China.

"Baleno's large-scale closures show the company's shrinking strategy, and its negative effects are mainly manifested in or further losing the market, because the number of stores is more important in terms of casual clothing brands, and if market closures are large, the market share may be further reduced." for this reason, Xiong Xiaokun, a light industry researcher at CIC, analyzed the times weekly reporter.

The large-scale closing strategy does not bring any effect to brand management.

As of September 30, 2015, sales in Baleno's mainland market increased by 3% to HK $1 billion 768 million, while total sales grew by only 0.5%.

And for the electricity supplier, Baleno knows what it is.

It is understood that although Baleno has its own flagship store on Taobao Tmall, its shop sells a relatively simple product. The main selling items are T-shirts, socks, slippers and so on. At present, the first thing in the sales list is a men's T-shirt priced at 45 yuan, with a monthly sales volume of 40818, which is far from being compared with UNIQLO eleven.

Ma Gang, a senior garment expert, said: "the most important reason for Baleno's decline is that the market is changing too fast. The emergence of new brands and international fast fashion brands enter the Chinese market. The impact of e-commerce is also very large. These leisure brands have not changed much, and positioning has been aging in the minds of young people for a long time."

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The parent company is having a bad time.

Baleno's performance is bad, and Tokunaga Kaya, the parent company, is not easy.

At present, the business of Germany Yongjia group is mainly divided into two parts: textile and retail.

The former is mainly processed by generation, while the latter is retail business represented by Baleno.

In addition to Baleno, which accounts for 70% of sales revenue, there are also four brands of S&K, Ebase and I.P.ZONE.

OEM is a good part of his performance.

Data show that at present, the company has more than 50 American customers, including Nike and Gap, accounting for 60% of the company's total revenue. Japanese customers (such as UNIQLO) account for 24%, while European customers (such as Adidas, H&M and Marks& Spencer) account for 10% of revenue.

In terms of customers, UNIQLO is the company's largest customer, accounting for about 10% of its revenue.

Gap, Nike, Polo and A&F each account for 4%-5% of company income.

Compared to the growth of the service, retail is much dismal, from the official release of the de Yongjia group announcement, from the second half of 2015, de Yongjia began to sell its trademark frequently.

In addition to this Baleno's Shanghai company, in 2015, de Yongjia also sold four trademarks continuously: it showed that the "KENTEX" trademark was sold in October 27th.

In November 9th, the "KACO" trademark was sold.

In December 21st, the "Magic Box" trademark was sold.

In December 24th, the "Time Magic" trademark was sold.

In addition to Baleno, the other Hongkong brand Giordano, also known as the same year, is also hard to escape.

It is understood that the total number of Giordano stores in the world is 2359, a decrease of 120 from 2479 in the same period last year.

The mainland of China has 1003 stores in the three quarter of last year, and the number has now been reduced to 913.

For the fiercely competitive mainland garment market, the golden age of Hongkong brand seems to be gone forever.