Apparel brands successively "shrink"

Under the current market, the brand must do a good job in the market, we must do a good job of research on the target audience. At present, the mass consumer market has shifted from the mass market to the focused and refined public markets. However, if we want to grasp the crowds of people with great potential for purchase, we must do a good job of research on such people. "Apparel enterprises must increase their efforts in the development of third- and fourth-tier cities."

At the time of the "Double 11" online shopping carnival recreating online sales records, offline physical clothing stores have received closed shop news. A few days ago, casual wear brand Giordano announced that it had closed 73 physical stores in the third quarter. At present, there are only 2 stores left in Chengdu Chunxi Road shopping district. People in the industry believe that due to the limitations of their own business models, and the impact of e-commerce and international parity brands, how local brand clothing stores are transformed into the top priority of the current development.

Apparel brands successively "shrink"

Yesterday, the reporter visited the Chunxi Road shopping district and found that there are only two shops in Giordano on the Chunxi road. The reporter then went on their official website to inquire. Chengdu currently has a total of 18 stores. At Jindang Department store in the Giordano store in the west section of Chunxi Road, the reporter noticed that within 20 minutes, only a few customers were picking up the goods. According to reports, Giordano closed a total of 74 retail stores in the third quarter, of which 63 were from mainland China. Sales in Mainland China were HK$341 million, a decrease of 5% year-on-year, and this sales figure has already reached the lowest value in the last 11 quarters of Giordano.

Insiders pointed out that the market is almost saturated, it is difficult to accommodate too many stores, similar brands in the Mainland "shrink" is not new. In fact, following the start of the closure of the sports brand last year, men’s clothing companies subsequently closed stores. Women's business days are also not good. In the first half of this year, Iger has already closed 88 stores in the Chinese market, and its performance has shown a downward trend. Esprit, which owns brands such as Esprit, had 38 stores in China last year.

Blind expansion leads to vicious competition

“At the end of last year, we began to pay close attention to the phenomenon of local sports brand stores continuing to close stores.” Lin Yong, deputy secretary-general of the Chengdu Clothing (Apparel) Industry Association, analyzed that many well-known garment companies in China have made their fortunes in the last century. Mid-decade. Due to the relative lack of overall apparel resources in the country at the time, in order to rapidly expand the market, most garment companies have adopted the model of increasing the number of stores to pursue profit. However, in fact, the speed of development will inevitably lead to internal management, human resources, and working capital can not keep up, so they do not care.

"Two or three own brand stores were opened on a street, and this kind of self-restraint strangled into a vicious competition," said Lin Yong. This mode of operation, to a certain extent, is a hidden danger in the current closure of stores.

Internet consumption changes distribution

The reporter learned that in recent years, with the rising raw materials and the continuous increase in labor costs, the apparel industry has continued to squeeze profit margins. At the same time, the rapid development of international cheap fashion brands entering the Chinese market and e-commerce has caused a great impact on local apparel brands.

“The previous 100% of physical clothing stores were sold offline, and only 70% are now offline.” A brand marketing director stated that consumers are now accustomed to shopping online after the 1980s and 1990s. Clothing brands must recognize this. Change, "The current total sales of clothing has not been reduced, the overall trend is still increasing, but the distribution of cake has changed."

Future Opportunities in Third and Fourth Line Cities

Lin Yong analyzed that under the current market, brands must do a good job in the market and must do a good job of research on target audiences. At present, the mass consumer market has shifted from the mass market to the focused and refined public markets. However, if we want to grasp the crowds of people with great potential for purchase, we must do a good job of research on such people. “Apparel enterprises must increase their efforts in the development of third- and fourth-tier cities.” Lin Yong told reporters that with the rise of consumption levels in the third and fourth-tier cities, this is an opportunity not missed by all local apparel companies.