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    The Brand That Has Been Abandoned By The US Has Become A "High-End Product" In China.

    2020/1/3 10:37:00 0

    High-End Brand

    In recent years, light luxury brands have created a lot of waves in the fashion industry. From a rough perspective, the main reason why these brands are popular is the price. Compared with the price of some luxury goods, the price of light luxury brands is indeed quite approachable. People who are familiar with the luxury industry know that many light luxury brands originated from the United States, and then gradually became popular in China. But many people may not know that some American brands regarded as "fashion" in China have been abandoned by the US, and some of them have gone bankrupt.

    Why are there so many extravagant brands born in the United States? First of all, because the United States has a huge domestic market. In the case of Tory Burch, it was founded in 2004, selling over 100 million in 3 years, and surpassing 1 billion US dollars in 2014. At such prices, only the size of the US market can carry such rapid growth. Today, Xiaobian will introduce three luxury brands that are known as "fashion" in China but have been "abandoned" in the US.

    Founded in 1986, American Apparel, headquartered in Losangeles, mainly deals in casual wear, T-Shirts, underwear, accessories and bags. American Apparel opened the first Chinese shop in Sanlitun, Beijing. At that time, it had a huge impact on Chinese brands, and AA was almost the only trend among young people.

    In 2016, Dov Charney, founder and former CEO of AA, was sacked for sex scandals. Then the sexy marketing of AA clothing was disgusted by consumers. However, AA abandoning the sexy line is clearly not the rival of other clothing companies. As of December 2016, AA filed for bankruptcy protection for the second time. In December 12th, AA released an open letter on its official website, saying it would withdraw from the Chinese market. In 2018, AA quietly returned to the Chinese market, selling low-key on e-commerce platform, but lost confidence in the brand.

    Virtue will be famous for its design and production of jeans and leather bags. Simple style, fashionable and new, loved by domestic consumers. At present, it is still being sold in China. Official websites often offer discounts and promotions. But in the US, because of outdated product design, it has lost the support of local consumers. Even the American retail godfather, Millard Drexle, was hired as the CEO of the company, which could not enhance the vitality of the brand.

    Finally, Millard Drexle chose to resign, and Madewell failed to repay its debts. Although it still claims to be China's "light luxury" brand, gall actually has nothing to do with China's mid-range clothing.

    Kate Spade specializes in handbags and footwear. After launching the first Kate Spade handbag Series in 1993, it soon became popular all over the world. At the same time, let Kate Spade become the largest luxury brand in China and the United States. In 2014, Kate Spade reached its peak. The company's share price rose to $more than 40 per share, but profits began to shrink rapidly thereafter. In 2015, its two men's wear brands were closed. Brands such as Juicy Couture and Lucky Brands, which still look profitable, have been sold by their parent companies one after another.

    As a matter of fact, the failure of these three luxury goods and the operational difficulties they are facing indicate that the retail industry has entered the sunset industry. According to Swiss official statistics, about 25% of American stores will face operational difficulties by 2022. Fortune predicts that there will be at least 1100 retail outlets closed in the United States in the future, at least 200. In China, physical luxury stores are also very difficult.

    But the failure of American enterprises in the US and the survival in China are all due to the strong capability of China's e-commerce platform. But without the core design and brand promotion of the "international brand", in China's e-commerce platform to eat this old, as time goes by, these brands "inherent" will be seen through, the results can be imagined.

    Source: Sports crazy

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