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    Five Years Later, Giordano Will Withdraw From The Mainland Market.

    2016/11/16 10:54:00 36

    GiordanoBrandClothing

    From the "80" or "90" favorite high-end.

    brand

    The famous brand has been reduced to a low-end brand, and Giordano has fallen rapidly.

    In fact, in the past four years

    Giordano

    We tried to save ourselves by breaking our wrist, scraping our wounds, releasing the franchise and developing it at a low price line.

    According to the insiders, at present, the share of Hong Kong's leisure brand represented by Giordano is constantly being eaten up by similar brands at home and abroad. Free joining in the strategy of rapidly digesting inventory and vigorously advancing into the three or four line city is tantamount to drinking poison and quench thirst. Giordano will withdraw from the mainland after five years.

    Supermarket companion

    Aunt Wang, who lives in the right anmen area, is shopping at Carrefour's Majiabao store. She still habitually stroll around the Giordano next to the supermarket.

    Aunt Wang thinks Giordano's

    clothing

    They are all basic, good quality and cheap.

    But even so, Aunt Wang has not bought Giordano products for many years.

    When it comes to Giordano, what Aunt Wang remembered most clearly was a cotton jacket that she bought over 100 years ago to her lover.

    "Less than 200 yuan a thick coat is also a famous brand, even at that time, it was also cost-effective.

    The only drawback is that some of them are airtight.

    Aunt Wang told the Beijing Business Daily reporter.

    However, in recent years, Aunt Wang has felt that Giordano has "gone mad".

    "The brand that has always been the best place in the shopping arcade is now open to the bees, lotus and Carrefour". Aunt Wang also feels that the Giordano stores that have sprouted everywhere seem to have decreased a lot.

    The reporter visited Giordano brand website and found that there are 27 stores in the Beijing area, of which 8 are located in chain stores such as Carrefour, Wuming and bu Mei lotus, or close neighbors with the above supermarkets.

    In addition, Giordano, once widely opened in the shopping malls of downtown Beijing, has shifted its business position to Pinggu, Changping, Shunyi and Miyun, which are located near Beijing, in addition to retaining some stores located in the new world and Wangfujing street.

    Of the 27 shops in Beijing, 15 are located in suburban areas.

    Such phenomena also appear in other first tier cities.

    Giordano has said this year that its expansion will focus on China's three or four tier cities and Southeast Asian markets, as the first tier cities are completely squeezed by ZARA, H&M and UNIQLO fashion.

    In addition, Giordano is also actively developing the developing countries market, such as Central Asia and Eastern Europe.

    At present, Giordano has many branches in Asia, there are 50-60 in Philippines, and there are about 100 in Burma. All the stores operate in franchise mode, and they also conduct wholesale business.

    Business is rough.

    As the first garment enterprise to enter the mainland market, Giordano introduced the so-called clothing retail store concept into the mainland in 1991.

    In the more than ten years since then, Giordano has become a fashionable fashion brand in the big cities of the mainland.

    An unnamed insider told the Beijing Business Daily reporter that Giordano has opened up shop in the gold trading area and gold area and pformed from an agent into an independent brand, which inspired the founder of UNIQLO Ryui Masa.

    However, in 2012, Giordano's performance dropped sharply and began large-scale closure.

    With the rise of international fast fashion brands and the change of domestic consumer habits, Giordano's good days seem to come to an end.

    In 2012, Giordano sales HK $5 billion 673 million, an increase of 1% over the same period, with a profit of HK $888 million, an increase of 13% over the same period last year.

    Among them, sales in mainland China amounted to HK $1 billion 898 million, a decrease of 6% compared with the same period last year.

    In terms of the number of stores, Giordano closed 163 stores in the mainland in 2012, of which 26 were self owned shops and 137 were franchised stores.

    Since then, Giordano has entered the adjustment stage.

    In the five years' time, Giordano has been exploring, but the result is very small, and the group performance also continues to decline.

    Beijing Business Daily reporter statistics found that in order to optimize the profit margin, Giordano closed nearly 516 stores over the past five years.

    Last year, Giordano has launched a 29-99 - yuan sales strategy and launched a free franchise model to reduce inventory and inventory cycles.

    Giordano, a broken arm and self rescue, recovered briefly in 2015. It was interpreted by the industry as the initial success of the pformation.

    However, after a year, Giordano's performance was once again returned to its original form.

    Collective failure

    It is difficult to extend the past scenery, and not just the Giordano family.

    The "Giordano" brands, such as Baleno, fort lion, crocodile and so on, which have been familiar with domestic consumers, have been gradually forgotten by domestic consumers. Baleno was sold at the beginning of this year at a price of 250 million yuan by the parent company.

    In this regard, the industry believes that no aggressive brand of Hong Kong will be withdrawn from the mainland market in five years.

    Yang Dayun, President of UTA Fashion Management Group, said that the Hong Kong brand was introduced into China in the early 90s of last century, because the mainland was relatively closed, and the popular management and promotion methods were advanced.

    Since 2000, with the rise of China's local brands and the flattening of information, Hong Kong brand has gradually lost its dominant position.

    "Chinese enterprises know more about the mainland market and surpass the brands in Hong Kong."

    For the decline of the brand, Yang Dayun believes that the most important reason is not thinking ahead, backward technology and lack of training.

    With the rise of the Internet, such clothing brands are gradually lagging behind domestic enterprises in information and Internet technology, and are also being suppressed by international fast fashion brands.

    Yang said, "as a trading port, Hongkong's business ideas of Hongkong businessmen are barter trade, but they are inadequate in brand training and industry promotion."

    After the "90's" rise, the "80's" became the main consumer group, and the Hong Kong brand was quickly abandoned.

    "Sales decline, profits decline, brands can not open stores in good lots, forming a vicious circle.

    In order to survive, we have to turn to supermarkets and three or four tier cities, so it is difficult to form brand effect.

    Consumers are going to buy it if they cut prices aggressively and push into the three or four tier cities. Yang Dayun thinks Giordano products are lower in price but less competitive and loyal.

    Consumers will quickly turn to other brands if economic conditions permit.

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