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    Small Town Residents Buy Clothes To Be "Picky" And Like Big Brands.

    2019/2/12 14:57:00 93

    Brand

    On the one hand, it is almost saturated with the first tier market, while the other is the two or three tier city with sinking challenges.

    For domestic clothing leading enterprises, the three line city and even the county (District) market below three lines has been a tempting cake.

    During the Spring Festival this year, the shopping mall at the golden section of the New District in Jinyun County, Zhejiang, has not been officially opened in the five line County town.

    But in the core area of the old city, cross street, Hai Lan home (600398, SH), Anta sports (02020, HK), Semir clothing (002563, SZ) and other brands of street shops have been open for many years.

    In fact, in addition to the brands that had entered the three or four tier market in the early days, the local brands, such as the front line, YISHION and others, originated from the three or four line, also ploughed the local market.

    In addition, La Natsu Bell, UNIQLO and other clothing brands in the first tier cities have made vigorous efforts to develop new markets.

    Buying "fussy" residents

    Recently, "daily economic news" reporters in the visit found that the streets have accumulated a number of old customers.

    On the eve of the Spring Festival, the traffic volume in each store is large.

    A shopper in a Semir store told reporters: "I studied in the northeast and just returned from a holiday. Because of the larger size, I tend to buy clothes in the physical store. I used to buy it when I was studying at home."

    Another consumer who tried clothes in Anta store said: "during the Spring Festival, many express stops, Anta is also an old brand, then come around."

    In addition, many consumers told reporters that their new year's new clothes were ready before the express delivery was stopped. "Now that online shopping is used, they generally choose to buy online, and online promotions are earlier than the promotion of physical stores.

    I bought it with my parents' clothes on the new year's day, and now I'm going out for a stroll.

    It is not hard to find that street shops are important consumption carriers for local residents in towns where there are no large shopping malls.

    Taking Anta as an example, the size of Anta's main brand can not be underestimated in addition to the FILA brands.

    According to relevant reports, as of June 30, 2018, the number of Anta's main brand stores, including Anta children's independent shops, was 9650. Among them, street shops were an important part of shopping centers and stores.

    However, some local residents told reporters that at present, the street shops in small towns have been unable to meet consumer demand.

    "The small shops in our small town are not new, but the prices are not low.

    Spring Festival wants to wear better, so the Spring Festival is more willing to drive to the shopping malls in neighboring cities such as Jinhua and Wenzhou.

    In fact, for a long time, the lack of first-line brands in most three or four line cities has led to different fashions and shopping experiences of consumers in different levels of cities, and this just provides a lot of space for the current number of first-line brands.

    La Natsu Bell, the women's clothing brand, said in its prospectus on A shares in 2017 that it plans to use more than 3000 new outlets and outlets in the next 3 years, and will focus on two or three lines and below cities to further enhance the layout of the three or four tier cities and enhance their competitiveness in the market.

    As of June 30, 2018, the company had 9674 offline retail outlets, which were widely distributed in about 2776 commercial entities.

    In addition, UNIQLO, H&M and other fast fashion brands continue to exert their efforts to integrate online and offline.

    The products such as "flagship flagship store" can be launched, and consumers can enter from the multiple entries of official website, APP and WeChat applets to achieve consumer demands such as buying, customizing delivery, receiving time, and exchanging interests of members.

    Power of brand sinking

    Where is the impetus for the first brand channel to sink?

    Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., told the daily economic news reporter that with the maturity of the market of second and second tier cities, the competition of the clothing brands intensified, and the operating cost increased, resulting in narrowing of the gross profit.

    "Domestic and foreign high-end brands in the second tier market layout has matured, the development of epitaxial development needs to be extended to internal control, so it is urgent to sink the three or four line market."

    However, before the Hai Lan home, Anta sports and other early years in the three or four line of the city to make a thrived brand, there are UNIQLO, H&M and other fast fashion brand layout and even the impact of the electricity supplier, the first line brand from the three line and three cities below a share of the city, is also facing many challenges.

    Taking La Natsu Bell as an example, its 2018 annual performance forecast shows that the net profit of the Company attributable to shareholders of listed companies decreased by 415 million yuan in 2018 compared with 2017 in the past year, which was reduced by about 109.21% compared with the same period last year.

    In Cheng Weixiong's view, La Natsu Bell's extension of performance by extension is not significant.

    "La Natsu Bell has nearly 10000 stores in the whole country, but the retail revenue is not high, which means La Natsu Bell urgently needs to solve product development, supply chain management, commodity planning and management, commodity operation and regulation, establishment and encouragement of store operation organization, location and optimization of stores, etc."

    It is worth noting that the clothing market of the past three or four cities is dominated by non branded bulk goods. With the deepening of consumption upgrading, branding is an important direction.

    Consumers will be more and more interested in branded products, gradually changing from quantity to quality, from basic function to fashion and brand. The three or four tier city branding seems to be the trend of the future garment industry.

    Cheng Weixiong told the daily economic news reporter that the consumption escalation of the three or four line market brought about a retail spillover effect and achieved a number of local brands. With the sinking of the second tier market brand, the three or four line market competition is also increasing.

    "We must promote local brands to further fall into the 456 line county (District) market, while developing the market space, while promoting the standardization of the retail market in the lower end market."

    Editor Zhu Yu

    Source: Daily Economic News Author: Zhang Xiaoyin

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