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    Hong Kong Brand Aura Is No Longer Affected By The Market.

    2016/8/25 12:40:00 57

    BurrowsBalenoGiordano

     Why are the brands of Baleno and burshlung long no longer popular?

    Clothing brand

    Bossini

    Bossini, after the glory of the last century, is no longer in sight.

    Burshlung expects that the profit of the company's clothing business will drop by 75% to 85% over the same period last year as of June 30th.

    As a matter of fact, not only did the burshlong family, such as Baleno and Giordano, lose their early light, but they gradually declined in the fierce market competition.

    Tired by the market

    In March this year, burshilon entered into a temporary sale and purchase agreement, selling a shop property in Macao, China at a total cost of 350 million, and expected to earn about 335 million yuan.

    This will enable the burlong lion to increase its profit by 147% to 157% year-on-year by the end of June.

    Nonetheless, if the proceeds from the sale of the property are converted, the profits of the company's main clothing business will plummet by 75% to 85% over the same period last year.

    Reporters in combing the financial reports of burlung, found that although it had already entered the mainland of China, most of its business was concentrated in China's Hongkong and Macao, China.

    Sales in Hongkong, China are big in burshilon, and the current slump in the market has been a headache for retailers in main business.

    The main reason for the sharp decline of the company's profits was attributed to the decline in the number of tourists and the strong Hong Kong dollar, which led to a decrease in the consumption of tourists in Hongkong, China, and the depressed performance of many core markets operated by the company. In addition, the abnormal winter climate and intense market competition were also the main reasons for the decline in profits.

    Chen Yalei, research director of consumer goods industry in the Asia Pacific region, said that the growth rate of domestic retail sales has been faster than the GDP growth rate. Even now the economy is slowing down, the retail sales growth can still stay above 10%.

    In fact, the performance of burshlung has been in the doldrums in recent years.

    In the first half of March, the first half of the year showed that by the end of December 2015, the turnover of the company was 1 billion 146 million yuan, down 13.13% from the same period last year, and the gross profit was 543 million yuan, down 18.35% last year, and the operating profit fell 75.79% to 25 million 260 thousand yuan in the same period last year.

    At that time, burshilong explained that the sales performance of some core markets was not satisfactory.

    Burshlon opened its first store in Hongkong, China in 1987.

    In 1993, burshlung International Group Limited was officially listed on the stock exchange of Hongkong, becoming the largest clothing retail group in Hongkong.

    In the 90s of last century, many consumers regarded the company as a synonym for "popular" and "famous brand".

    But now, burglung is almost invisible in the first tier cities in mainland China.

    Hong Kong brand aura no longer

    Obviously, it is not so easy for the Hong Kong brand to seize the market.

    Besides the siege of the same clothing brands facing the rise of the mainland, the continuous entry of overseas international brands can not be ignored.

    UNIQLO had already started a joint venture in China in 2001, and after several years withdrew from its Chinese partners, it operated exclusively in China.

    H&M and ZARA entered China in 2007. In 2010, the national brand GAP of the United States began to set up in China.

    These fast fashion brands gradually introduced their sub brands after the rapid opening of the main brands, and gained quite a lot of fans.

    Not only the burger dragon, such as

    Baleno

    ,

    Giordano

    Such a Hong Kong brand is now facing almost the same problem.

    The Baleno, endorsed by Andy Lau, was once a popular brand among young people in the mainland. Now it has lost its aura of the past.

    Baleno's parent company, Hongkong, China, has been eager to get rid of the "burden" because of the "decline" of the brand. At the beginning of this year, it announced the sale of its subsidiary subsidiary Baleno Kingdom Limited Shanghai at a price of 250 million yuan.

    The same is true for another Giordano.

    Reporters learned that Giordano's main market has moved to mainland China compared with burlung.

    Since 2011, sales of Giordano in the Chinese mainland market have begun to decline.

    In early 2014, Giordano had considered adjusting its brand, hoping to help itself through multi brand strategy.

    In the second quarter of the year, Giordano launched the cheap brand Beau Monde (BM) and took it as the focus of 2015 development.

    Later, it launched the EULA, a casual wear brand for high-end department stores.

    In the past two years, Giordano has opened nine EULA shops.

    But the market does not sell the face of the "veteran", because of the poor performance, Giordano has finished the operation of EULA.

    Another new brand, BM, is still at a loss.

    According to the earnings report released in March this year, as of the end of 2015, the number of stores in mainland China was 891, compared with 961 in the end of 2014, and 70 in March.

    Cheng Weixiong, general manager of clothing industry senior observers and Shanghai Liang Qi Brand Management Co., Ltd. believes that the performance of the above Hong Kong brand has indeed been affected by the depression of the whole garment industry, but the company's own product system is also lacking in innovation.

    Although the company is constantly adjusting, "the core problem is that most of these may be just some redemption to meet the interests of investors, and there are no more long-term plans."

    There is a well-known saying in the clothing industry that there is no weak market, only weak products.

    Min Guangya, a retail expert in fashion apparel industry, said that nowadays Baleno like this is not keeping up with the trend.

    The style of goods in the shop is slow to update and less explosive.

    "Although some of the clothing brands in the mainland of China are not playing fast fashion, at least they are still seeking changes, such as actively doing electricity suppliers, and when you look back at these Hong Kong brands, they do not see any big moves."

    These old brand brands are still hopeful for future development.

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