H&M Xidan Joy City Store Closed? Fast Fashion Gold Ends In Ten Years

H&M Xidan Joy City store closed.

Located at the north end entrance of Xidan's Joy City, it occupies 3 floors of gold shops from minus one to two floors, and shelves are empty now.

The notice posted said that the suspension of business was due to the adjustment of internal decoration according to fire requirements.

From a source familiar with the news, this is not a temporary store consolidation, but will be formally closed down shop.

according to

When the contract was signed for more than ten years, the lease did not expire, which meant that the city had risked paying the penalty for breach of contract, and H&M had to let it go.

Xidan has an inch of land.

According to the data of World Bank Richard's, in the second quarter of 2017, Xidan's property stock was the smallest among the seven major business circles in Beijing, but the price of the first floor rent of shopping center was the highest, reaching 2200 yuan per month.

Xidan's joy city is worth fighting for in resisting the aging of Xidan business district, which is mainly based on department stores.

The shopping centre hopes to continue to maintain its new style.

In the context of a brand adjustment with the theme of "upgrading", the departure of H&M seems easy to understand.

In the core city's core business circle, there will be a huge impact on any brand, and for a brand that still wants to expand, this impact will be even more serious.

The closing of Xidan stores is likely to weaken the right to speak in the next H&M shop.

H&M's performance has slowed down, but the scale has become negative.

The closure of the H&M shop is no accident.

A person who has been engaged in commercial real estate investment has told 36 krypton that H&M is also facing pressure from some stores in some three or four tier cities due to poor performance.

"It's very difficult to open a new store this year."

These people said.

Since 2007, the first store in mainland China opened in Huaihailu Road, Shanghai, H&M has been in China for ten years.

In 2009, H&M entered Beijing and opened the front gate Street store and Xidan Joy City store in the first phase. After that, it maintained an average of 3 new stores per year in Beijing.

In 2014, at the landmark APM shopping mall in Wangfujing street and in Sanlitun's Taigu, H&M dropped two more sons. Every opening ceremony is a great event in the fashion industry of Beijing.

Cai Zhiqiang, general manager of APM, said in a media interview in 2013: "after the lease is full, Nike will withdraw. Another fast fashion brand (H&M) will be settled. When we get there, we will have almost all the fast fashion brands."

At that time, it was Nike's first flagship store in China that was asked to withdraw to replace H&M.

In the wave of the main shopping center of the previous shopping center, fast fashion is a "aggressive intruder". It is not only traditional mid-range brands such as Only, Verymoda, Eland, but also a large sports chain like Nike.

Open display, dazzling, fashionable styles, fast shelves, and the most critical and approachable prices make fast fashion the most effective passenger flow engine, making shopping centres flocking.

At the negotiating table, the leading fast fashion brand was once the most "big toe" negotiator.

When entering China, the harsh conditions of cooperation between H&M and ZARA were enough for developers to take a cool breath - not only the best pavement, but almost no rent, even less than 10% of sales discount, almost equal to luxury goods.

And in the department store, the brand name will be 20%.

Even so, in order to compete for the largest number of consumers in the increasingly fierce competition of real business, fast fashion has become the standard store of shopping centers for a long time.

"It's better to be stationed in a group, and the faster the fashion brand, the better the better."

Durbin, general manager of the leasing business line, describes the demands of the owners.

But this is not what it used to be.

The growth of several fast fashion brands is slowing down, but H&M may be the first to expose the crisis.

Globally, H&M sales have maintained a single digit increase, but the operating margin, which measures operational efficiency, has declined for four consecutive years. This is a slightly embarrassing pcript for H&M, which calls for "fast operation" or even self built logistics system.

The Chinese market is not very good either.

In the second quarter of 2017, H&M group's sales growth in China was only 4%.

Such a single digit or even negative growth has been going on for more than two years.

You know, before 2015, the sales growth of H&M group in China was over 20%, and in 2012, it reached 50% of its peak.

"Two or three years ago, I would still buy H&M, but now, I don't know what happened, but I always feel that I can't buy anything."

Cara said.

She is a white-collar worker working in Shanghai. She often goes to various shopping centers because of her work needs.

"I haven't seen anyone in H&M shop for a long time. It's basically cold."

H&M and other fast fashion brands used to be customers' fluent players in shopping centers.

The rapid expansion of H&M in China is also a microcosm of the Swedish brand's global strategy.

In 2007, H&M had 1522 stores in the world. After ten years, this figure jumped to 4351. In China, the number of H&M stores increased from 134 in 2012 to 444 in 2016, and now it is two times more than that of Zara stores in China.

With the fast fashion saturation and fierce competition in the second tier cities, H&M began to push the channel down and opened the stores to a broader low level city after 2013.

Take 2016 as an example, H&M's new stores in China (excluding redecorating) include 9 first tier cities, 15 new first tier cities, and 53 others in 234 line cities.

"H&M is willing to go to small cities, as long as there is a decoration subsidy."

A commercial real estate insider who has been in touch with the H&M Extension Department said.

This means that the H&M site selection criteria are difficult to be cautious when expanding rapidly.

Another important risk of sinking strategy comes from products and pricing.

"Three or four line cities fast fashion's new frequency is not high, causes its" quick renewal, the high performance price ratio "the characteristic has not fully realized.

Liu Cuixiao, director of commercial real estate and consumer service agency, Business Research Institute, said.

"The three or four line crowd has a cheaper choice. People who have the ability to consume will buy better quality, more expensive brands, such as PORTS, JORYA and other women's clothing brands.

Fast fashion is the best. "

Another insider commented.

The new rival of China's rise is also threatening.

For example, MJstyle, a fast fashion brand from Shanghai, can be regarded as a rookie of the two or three line city shopping center. In 2016, 14 fast fashion brands were listed in more than 350 stores in China, and MJstyle accounted for nearly 1/3 of a brand.

Compared with the traditional fast fashion brands, MJstyle has more fresh faces. The fusion of dress, home and coffee is also innovative. What's more, relatively relaxed business conditions make it more vulnerable to the owners' favor.

Channel strategy can not hide the core of the problem.

H&M seems to have been unable to find the right path to enhance its brand power.

A common voice is that ZARA is well designed, UNIQLO wins quality, and H&M is the most obscure one.

When the essence of the new round of consumption upgrading is increasingly highlighted as "quality and price flat", H&M's single price advantage will hardly make consumers pay.

According to a statistics, the average annual sales of H&M in China's single store declined from 32 million yuan in 2012 to 19 million yuan in 2016.

At this point, the huge scale of stores and the resulting operating costs will only make the brand unbearable. Sooner or later, stores will come.

According to incomplete statistics, in addition to UNIQLO and New Look, the speed of fast fashion brand opening in Chinese shopping centers has slowed down, and GAP and C&A have almost disappeared.

The relationship between shopping centers and fast fashion has changed.

Shopping centers are sensitive to the rise and fall of brands and brands.

Surrounded by H&M, ZARA and Gap, the three fast fashion brands in Xidan, plus the later Apple flagship store, the intention of the investment promotion department is to pool the best brands of drainage capabilities to create the "invincible first floor" of the shopping center.

However, over the past few years, more and more shopping centers have sprung up in the east of Beijing and the south of the city. They have taken considerable passenger flow. The Xidan high Joy City, where the rent is at a high level, is also hard to boost its performance by raising rent.

Flexible adjustment of brand portfolio is the lifeline of keeping vitality in commercial projects.

Xidan Joy City is just a representative -- from the middle of 2015 to the end of 2016, the proportion of brand adjustment of Xidan's joy city is as high as 50%, and the new brand is about 30%.

The direction of this round of brand adjustment is "more expensive" and "more fashionable".

The Kate Spade, Michael Kors and ISSEY MIYAKE of the light luxury bag brand have been settled in one layer. The cosmetics area has introduced Dior and Estee Lauder, and they have surrounded the excellent location of the escalator on the two floor, contributing to the highest flat effect in the shopping mall.

ZARA, a fast fashion brand, was able to renew its rental business with Xidan's Joy City store in 2015.

It invested heavily in the original 1100 square meter shop to 1800 square meters, upgraded to the flagship store in Asia.

Upgrading to flagship stores is likely to be a key requirement for the owners to negotiate with ZARA in the renewal negotiations.

By contrast, this H&M store is even more tasty for Xidan's joy city.

H&M chose to invest more in flagship store in Sanlitun.

The fast fashion that made shopping centres distinctive and fashionable has become the initiator of their vague faces.

When the new aura is no longer, fast fashion has a decline in the right to speak of shopping centers, even if "expelled" is a case, but on the whole, the game relationship between the two sides has changed.

The fast fashion group is stationed in the city, and the grand occasion of filling the first floor is no longer staged.

Even far away from the center of the city, the volume is large and investment is not easy.

36 krypton learned that Shanghai's Qibao Vanke square, which opened last year, has rejected a well-known fast fashion brand. It only introduced ZARA and UNIQLO. Recently, Yi Fengcheng chose H&M and UNIQLO.

Last year, the Tianjin peace joy city opened up a shadow of a fast fashion, and a layer of entrance area all gave food and lifestyle brand.

This year's newly opened Shanghai Xingye Taigu Hui also has no fast fashion, instead of H&M group's high-end brand COS.

The terms of negotiations are not as good as before.

"Several famous fast fashion contracts were not guaranteed at the beginning, but only for the water points.

But now, the first sign or renewal of new stores in the first tier cities, there are very few favorable conditions for fast fashion enjoyment. For example, the deduction point may rise from 5% to 7% to 7% to 9%.

Durbin said.

Even if there is a fast fashion blank market in the low line market, some markets prefer to MJstyle, NEW LOOK, which are relatively new and fast expanding fashion brands.

Durbin said.

Fast fashion gold ten years of high growth again difficult to replicate, this is the 36 krypton in the interview process of the industry's general view.

The next is the shopping center brand portfolio. Everyone is reexploring and trying to establish new experience.

The H&M are gone. Who is the replacement?

It is reported that Victoria (s' Secret) will be a new brand to replace the H&M location of Xidan Joy City.

The women's underwear brand from the US and the flagship "sexy" is accelerating the layout of China's new market.

L Brands reports that in fiscal year 2017, it will open 6 stores in the Greater China market.

Now it has one in Shanghai's Li Bao square and one in Chengdu and the Mixc, and Beijing is the next station.

Brand scarcity is increasingly becoming the quality of leading shopping centers.

Although the new brand of "China's first" or "city first" has risks, once the bet is accurate and the momentum is created, who will be able to enjoy the bonus of the rise of the brand first.

The same is true, from the high-end quality to the "lifestyle" pformation of Sanlitun Taigu Li north area, at the end of last year, yoga brand Lululemon introduced the first store in Beijing.

In the north of Taigu, there is also the only Gentle Monster in Beijing. There are many celebrities and celebrities who are here and present. Besides, there are also a lot of celebrities and celebrities. The most recent topic is hip-hop singer PG One shooting a blockbuster for a fashion magazine.

The emphasis on "first store" reflects the anxiety of the commercial real estate industry.

Monotony is the most dangerous signal. "People without me and people without superiority" have become ever more important.

This is also the net black tea drink brand "happy tea" at the same time opened two stores in Beijing, and Sanlitun store was strongly urged to upgrade to "black gold shop" reasons.

"

Sports and experience are the main directions for further adjustment.

Durbin said.

Ali box Ma Xiansheng, Yonghui super species, Bailian RISO and other "supermarket + catering" new business mode is likely to replace the original supermarket main store, while the sports fitness boom has given sports retail a comeback opportunity.

Shanghai's national gold center and Kerry Center store have set a good location for Lululemon, such as the Kerry Center store located on the first floor, adjacent to the light luxury brand, which has never been in the past sports brand location.

36 krypton also learned that K11, the main humanist and art company, recently opened the "sports zone" on the negative two floor, and introduced the first Danskin store in China, which was acquired by Lining.

As for the categories that are included in the experience format, they are breaking through the old combination of restaurants and cinemas, and moving towards higher "entertainment" iterations.

Ruian real estate's Shanghai Rui Hong Tiandi Moon Bay has boldly introduced the live house of the modern sky as its main store. K11 has recently become a partner of heroes' mutual entertainment, and plans to introduce E-sports hall and VR Experience Hall.

In addition, the number of cross-border shopping centers such as cross-border stores, bookstores, DIY handcrafts, etc., has increased three times over the past three years. Shopping centres have tried to retain customers for a longer time with a rich experience.

However, from the shopping center itself to the commercial real estate investment advisory organization, no one can decide who is the "H&M replacement".

Fast fashion, from the ability of carrying passengers to the momentum of public opinion, seems to have reached unprecedented heights in the history of Chinese retailing, and it is hard to have any other type to reappear brilliantly.

Perhaps the essence of a different era is that there is no longer a certain pattern that can be once and for all.

More interesting reports, please pay attention.

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