China'S Old "Tide Card" Baleno Giordano And Other Difficult Steps Are Experiencing An Embarrassing Situation At Low Prices.

Represented by JEANSWEST, including Baleno, Giordano and other first batch of Hong Kong investment brands entering the Chinese market, they are experiencing an embarrassing situation of low prices or even a large number of stores.

For many 70 and 80's consumers, JEANSWEST brand is one of the fragments of youth memory, and also the symbol of "fashion trend" in those years.

At that time, when walking to the busiest commercial street in the city, you could always see the shape of JEANSWEST store. In a series of casual clothing brands, its dynamic image attracted a large number of young people.

Today, however, JEANSWEST, which has been making frequent discounts throughout the year, is disappearing at an average of one store per day.

According to the relevant reports, as of the end of fiscal year 2017, JEANSWEST operates 1298 stores in the country, compared with 2284 stores at the end of 2014, JEANSWEST has closed nearly 1000 stores in the past three years.

Represented by JEANSWEST, including Baleno, Giordano and other first batch of Hong Kong funded brands that first entered the Chinese market, in 90s, they brought advanced design and retail ideas to the domestic garment industry, and became the initiator of domestic casual wear brands.

However, these tide makers are experiencing the awkward situation of low prices or even a large number of stores.

The rise of JEANSWEST is not accidental. It is one of the products of the specific period of development of Chinese society.

In the days when the demand was insufficient and even the cloth needed to be sold, there was no soil for the growth of the brand, and there was not much demand for clothes.

In 1984, the whole country formally abolished the cloth, and the clothing began to appear more style.

With the continuous development of economy in the late 80s and early 90s, especially after the "South inspection speech", the awareness of brand awareness began to revive, especially for Hongkong and foreign brands.

The arrival of JEANSWEST and Giordano coincided with the time. These China's first generation of tide makers quickly moved from big cities to places with brand advantage, almost becoming the symbol of every Chinese city business circle.

Over time, the Chinese market has changed dramatically.

Brands coming from all over the world are pouring in like the tide, and the Chinese people are interested in brands.

In China, the old tide brands who have passed the "age of independence" are obviously unable to keep pace with the Internet age which is changing faster and faster.

The aging of the brand is serious, the marketing method is single, and there is little input in publicity and communication with consumers. From design to promotion no longer surprises people, and almost no advertisements appear.

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Nowadays, in the second tier cities, the mainstream business circle has rarely seen their figure, basically reduced to "big road cargo".

In the three or four tier cities, the clothing market is also suffering from the price squeeze of domestic low-end brands, which is also difficult to survive.

Poor sales resulted in backlog.

In order to solve the problem, these old trend cards adopted a low price strategy, but they even put them in an awkward situation.

The new generation of young people was born in the prosperous world, and the economic conditions are generally high.

With the continuous influx of global brands, their vision is constantly improving, and they are more inclined to high quality and fresh Chinese and foreign brands.

It's hard to touch old friends and new friends by relying on low prices alone.

Apart from brand aging, the lack of core competitiveness is the fundamental reason for the difficulty of turning the tide.

Taking a look at the fast fashion brands in the Chinese market such as UNIQLO, Zara and so on, almost all of them have the core competitiveness that others can not simply copy.

Take UNIQLO as an example.

According to the financial data, in 2017, sales in UNIQLO's overseas business sector amounted to 708 billion 100 million yen (41 billion 490 million yuan), an increase of 8.1% compared with the same period last year, while operating profit increased by 95.4% to 73 billion 100 million yen (about 42.8 billion yuan), almost doubled.

As such a successful brand, UNIQLO was entering the Chinese market in 2002, compared with Baleno, which was 10 years late.

However, the "slow man" UNIQLO, in a very short time, let Chinese consumers know that it exists.

The secret is that UNIQLO sells clothes and technology.

2003, UNIQLO and world materials

Dongli, a giant and fiber producer, has launched the "Heattech" thermal products.

With the comfortable and hi-tech fabric of superfine fiber and its super insulation, it quickly became the autumn and winter of UNIQLO.

The main star product of sales has changed the consumer's winter wear experience.

After the success of "Heattech", UNIQLO and Dongli continued their cooperation, forming the tradition of micro innovation and small technology improvement, such as the new antibacterial function in 2004, the moisturizing effect in 2005 and the antistatic function introduced in 2009.

As a clothing company, UNIQLO's admiration is not its quantity of shops, but its constant R & D investment in fabric technology.

It is against this point that UNIQLO has risen from the early cheap brands to a world-class brand that has changed the lifestyle of Asian consumers.

Zara, another fast fashion giant from Europe, has also occupied a large market in China's apparel market, relying on its fast growing speed and efficient supply chain system.

The data show that Zara only takes about 20 minutes to design a single product, while the fast fashion H&M design takes 1.5 to 2 hours, and GAP to two months.

In terminal retail, the speed of Zara update is also unmatched by rivals.

Every year, Zara has about more than 50000 new shelves, and one style goes off in three weeks.

From design to production to rack, Zara will take up to 12 days at most.

By contrast, China's traditional clothing enterprises will spend about 180 days. How can such efficiency be satisfied with Chinese consumers who have been spoiled by brands and become more and more loathing?

The old tide brand is struggling. Under the brand economy, "cheap" has become increasingly difficult to become the reason for Chinese consumers to buy. Regardless of old brand new brand, they need to produce excellent products that meet the needs of modern consumption, so that they can be both heaven and prison.

Foothold.

The brand foundation of Lao Chao brand is actually very good, but there is still a positive and warm cognition in the minds of a generation of consumers. However, "sympathy" can not save an enterprise, the development of brand is endless, and the source of eternal vitality comes from persistent innovation.