Another Fashion Brand Is Withering, And Superdry Is About To Withdraw From The Mainland Market.

"Just grow grass, and have not bought two pieces yet. It will be closed". At noon today (June 24th), the British Superdry, known as "pure British blood", declared that "the upcoming mainland China market" attracted many fans quickly, and many people called it "hard to accept".

This fashion brand, which has only been in the mainland for 4 years, needs to rush out. At present, what is the status of Superdry stores located in many parts of the country? Daily economic news reporter noted that more than Superdry, in recent years, New Look, Foever 21, Esprit and many other well-known brands tear away from the mainland market. What causes this?

As of June 23rd closing, Superdry group closed at 145.6 pounds / share, with a market value of about 120 million pounds.

Physical stores and e-commerce flagship stores will be completely withdrawn from mainland China

Since April this year, Superdry has been coming out of the mainland market. Founded in 2003, it is an authentic British brand. After 17 years of development, it has been spread all over the world and has been sold in over 40 countries worldwide.

The unique nostalgia effect and highly personalized design style make Superdry become the favorite clothing of many celebrities. In recent years, Beckham, Jude Dello, Kate Moss, Shawn Yue and others have been Superdry, and gradually let this tide card become hot among young people.

When it comes to Superdry's entry into the mainland market, it should be traced back to a few years ago. In 2015, Superdry and China's hkei International Group reached China business cooperation. In 2016, the two sides invested 18 million pounds (about 180 million yuan), set up a joint venture to expand the Chinese market, each holding 50%. According to the agreement between the two sides, the term of cooperation is at least 10 years.

In the past 4 years, Superdry has opened 66 stores in Beijing, Shanghai and Chengdu, of which 25 are direct stores, and flagship stores have also been set up in Tmall, Jingdong and other e-commerce platforms.

At 12 noon on June 24th, Superdry announced on its official WeChat public and micro-blog that it was about to leave the mainland market. Attracted the attention of many netizens, we have expressed dissatisfaction with the withdrawal of Superdry. Some netizens recalled the mood of Superdry when they first entered the mainland of China. "At last you can buy a favorite brand, and then go to Sanlitun flagship store frequently." Some netizens say that every time they catch up with the Superdry promotion, they will spend ten thousand or twenty thousand of their money.

"Many of my clothes are Superdry, from T-shirts in summer to winter clothes in autumn and winter." Ms. Wei told every reporter that she liked the design of Superdry and regretted that Superdry had withdrawn from the mainland of China. "I just changed all my points, and I plan to go shopping again tonight."

Why did Superdry leave so suddenly, what caused it? For this reason, every journalist calls Superdry customer service in China as a consumer. "Sorry, we are going to withdraw from the mainland market temporarily because of the epidemic situation." After the call was switched on, the staff told reporters every time that "the Superdry store and the flagship store will be closed."

The above staff also reminded reporters that if there is a Superdry score, it can be exchanged between online stores from June 24th to July 23rd. "By July 31st, all points will be emptied". The staff said they did not know whether or not they would return after the "mainland market".

At the same time, every reporter noticed that Superdry's Tmall flagship store also issued a notice on closing the member club, saying it will close shop in July 24th.

The "fast" business model has made overseas brands face great challenges in the mainland of China.

Although Superdry only announced today that he was going to leave the mainland market for a while, in fact, a few days ago, Superdry stores closed quietly.

"The first two days, when I was shopping in a shopping mall near my home, I saw that Superdry was closed. But at that time, I didn't think much about it. I thought it was just a problem of the shop itself. Wei recalled to every reporter. In June 24th, every reporter called the shopping mall in which Ms. Wei had been in Superdry, asking about the store. "Superdry has been withdrawn from us some time ago." The store staff confirmed.

Through multiple interviews, the reporter learned that the Superdry discount that has not yet been shut down is "3 pieces 65% off, and the other part is 75% off". Beijing Wangfujing mall Superdry shop staff told every reporter, "but there are not many stores, we closed stores in June 28th."

The impact of the epidemic is only one aspect. On the other hand, the development of Superdry has not been satisfactory in recent years. In December 12, 2019, the Superdry group released data for the first half of fiscal year 2019/2020. In the first 26 weeks ended October 26, 2019, the net sales volume of the company decreased by 11% to 369 million 100 thousand pounds compared to the previous year, with a net loss of 6 million 500 thousand pounds.

It is worth noting that Superdry is not the first fashion brand to announce its withdrawal from the mainland market. In recent years, many brands such as the British fashion brand New Look, the American brand FOREVER 21, the American Apparel Group Gap's Old Navy have been evacuated from the mainland market.

Why do these well-known brands, especially the fast fashion, have withdrawn from the mainland market? "Brand is fast fashion, emphasizing the so-called extreme efficiency, only fast. However, this fast fashion "only fast" business model has been challenged in China, especially in some foreign brands. Because China has many faster or more efficient local brands. " Yang Li Zeng, managing director of Boston consulting and global partner, said in an interview with reporters.

Yang Li further told reporters that for example, Zara's shelves are 12 days ~14 days, and HM is 21 days. "Some of our local brands now only cost 10 days from production to shelves, and the price is lower than that of foreign brands by 20%~30%. So this breaks the advantage of the so-called fast fashion. Yang Li said.