Martha'S "Acclimatized" Phenomenon In The Chinese Market

According to the world clothing shoes and hats net, the international retail giant borrows

Exploring the Chinese market has become a norm, but not every enterprise can go smoothly.

The British retail giant Marsha general is in the official flagship store and Tmall of Martha Tmall.

Shop posted "closed shop notice", and Marsha general store imported food Tmall shop.

The official flagship store and Jingdong's flagship store has also been closed.

According to industry experts, after the foreign department stores enter the Chinese market, the market is too few, the theme of the mall is not clear, the brand is mismatched, and the parallel channels are distributed.

Closing stores one after another

Marsha general has announced that the company has sold the retail business in Hongkong and Macao to Al-Futtaim Group, a franchise partner. This not only shows that Martha is officially withdrawing from the Chinese market, but also means that Marsha will formally withdraw from the international market.

In addition, reporters at Martha Tmall official flagship store and Tmall children's wear shop noticed that Marsha's Department posted a "closed shop notice" on the front page and said that the official flagship store of Marsha will be closed due to the adjustment of international business strategy.

At the same time, there are only two entries in Tmall's online shopping mall and Tmall children's wear shop in the official website of Marsha's department store. The original imported food Tmall store, Jingdong Marsha official flagship store and Jingdong import wine flagship store entrance are not visible.

It is reported that Marsha general store first entered the Chinese market in October 2008, and opened an independent online shopping platform in mainland China at the end of 2012, and opened shop in Tmall mall.

Announced in May 2012, Marks & amp; Spencer expects to launch its online sales target in 10 international markets by 2013.

Losing China

Martha began to accelerate its closing down after its international market performance continued to slump.

In the 2017 fiscal year, the international market loss of Marsha's Department reached 31 million 500 thousand, and its operating profit dropped 39.6%.

Among them, the once profitable Hongkong market also reduced revenues and profits by reducing discounts.

Marsha's CEO Steve Row has said that Martha's overseas market is too small, and the company's knowledge of overseas markets is too small to make profits overseas.

At the same time, the low reputation of Marsha's second tier cities in China is also the reason why shops are closed.

Yang Dayun, President of UTA Fashion Management Group, said that closing shop is inevitable.

First of all, Marsha general store is not acclimatized in the Chinese market. Secondly, after the foreign department stores enter the Chinese market, they copy the domestic department stores in terms of business strategy, business mode, internal setup and brand, and do not show the "London impression" expected by consumers.

Finally, the decline of foreign department stores in recent years is also a factor that led to the closing of Marsha's department store.

For the failure reasons of Marsha's electronic business platform, Yang Dayun said that Marsha's department stores had sales force online, but the consumption habits of domestic consumers on line were different from those of foreign countries.

When foreign consumers choose products, they will go to the department store online brand stores, but the domestic consumers are mostly through many parallel channels, such as Tmall, Jingdong, single brand flagship stores, even purchasing agents, and buyers' collection stores.

Yang emphasized that it was the single brand multi-channel parallel sales that caused the impact on the online store of Marsha. No matter in terms of price or mode of operation, Martha had almost no competitive advantage.

Coping with depression

Most of the foreign department stores have "acclimatized" after entering the Chinese market, and Marshal's performance decline from offline to online is not a case.

Messi's Department, which is weak in recent development, seems to have seen its way out in the electricity supplier.

In September 2017, Messi's department store eBay Hal Lawton, the chief executive of electric power giant, started the layout of e-commerce channels.

At the same time, we have reformed from Messi department store to purchase the most popular products, simplify the pricing mechanism, increase sales staff and enhance customer experience.

Shops will also expand the area of beauty business.

The three quarterly report of fiscal year 2017 shows that the group's electricity supplier income has achieved double-digit growth and 33 consecutive quarters of growth. It is estimated that the company's electricity business will continue to grow in double digit growth in the fourth quarter of fiscal 2017.

But compared to Amazon, Messi department store sales of electricity providers still have room for improvement.

In the whole year of 2016, Amazon's revenue reached $135 billion 987 million, of which the total sales of North American electrical appliances and other general merchandise sectors were $64 billion 887 million, an increase of 28.7% over the same period in 2015.

Industry analysis shows that the increase in online sales of most department stores is mainly due to the hot selling of the holiday season, but more retailers will be challenged in 2018. The situation will not be much improved compared with 2017, but the division between excellent and inferior retailers still exists, which is more likely to be further aggravated by the impact of future tax reform.

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