Brand Shoes And Clothing Encounter Price War, Resulting In Large-Scale Closure.

Numerous local

After experiencing the rapid expansion of the franchised store network in the past few years, it has begun to scale down its stores on a large scale under the pressure of business.

Reporters learned in the interview that the reasons for various brands to lose weight are not the same. However, the excessive homogenization of their products makes it impossible to ignore the price war.

"The current closing shop tide should be a return to reason from a certain aspect, but this price is too great!"

Securities analysts comment.

Fashion brands Giordano encounter fierce business

Miss Qin, who lives near the people's University, found that the popular clothing stores in the past year are vanishing one by one.

Giordano, Baleno, JEANSWEST and other fashion brand stores that used to be very attractive to college students used to be crowded around the University District in Haidian District, Beijing, but now many shops are already empty.

"Even many old shops that have been open for more than 10 years have disappeared. Those were the hallmarks of our university."

Miss Qin told the Beiqing Bao reporter.

In fact, not only around the University, many careful people who often stroll in the big shopping mall can also find that these brands that used to occupy the youth clothing floors of large shopping centers have disappeared as well, and now the density of these brands in the shopping malls and commercial streets in Beijing has been significantly reduced.

By the end of 6 this year, the number of Giordano's stores in the mainland was 1066, and self owned stores and franchisees accounted for half of them, while the latter had slightly more than 60 stores.

Previously, the financial statements released by Giordano showed that 95 stores were closed in the mainland in the first half of this year, of which the number of disappearing franchisees was significantly more than that of self operated stores.

Behind the frequent closes is its sustained decline in sales in the mainland. In the first half of this year, Giordano's sales in the mainland dropped by 6% compared with the same period last year, and its profit dropped by 49%. JEANSWEST closed 213 stores in the second half of last year to the first half of this year, 193 of which were self operated stores, while its sales in the mainland also decreased by 15%.

"

The impact on us is too big. This kind of clothing, which has a certain brand and low price and is the main consumer group of young people, is the biggest impact on the online sales. "

A Giordano shop chief told the Beiqing newspaper that the Internet shopping has been especially obvious for the two years. Many young people, including college students, are not going to shop instead of buying clothes on the Internet, which seriously impacted the sale of the store.

The decline in sales of Giordano's physical stores can be verified from its earnings report. In the first half of this year, Giordano's comparable store sales decreased by 4% on average, while the single store sales in the mainland dropped by 5%.

The store manager said that sales of his store had dropped by at least 30% in the past three years.

Haidian District store rents rose 10% annually.

It is understood, like this kind.

There are strict standards for location selection and storefront decoration, such as passenger flow and business atmosphere.

But these hard targets directly push up the cost of store rents.

In the past three years, the rents in Haidian District's colleges and universities have been rising at a rate of 10% per year, even though they are benefited from the original long-term contracts. "Otherwise the rent will not rise below 20% every year."

Sales decreased significantly, shops and labor costs went up all the way, and the profit margins of these garments were constantly being compressed.

Giordano's earnings report showed that its clothing cost increased by about 12% in the first half of this year, but its selling price rose by only 4%, leading to a reduction in profit margins.

This is also increasingly pressing against the survival space of these entity stores.

This name has already been

Nearly 10 years ago, the store manager told the Beiqing Bao reporter that the most golden period of fashion brands like Giordano was from the end of 90s to the end of 2000, and she caught up with herself.

She said that if the situation did not improve, she would certainly not do so when the lease expires at the end of next year.

In her mind, it is almost impossible to improve the situation.

Other fashion brands that have always been similar to Giordano are facing the same situation.

Data showed that the company closed 88 stores in mainland China only half a year ago, and the number of Baleno's outlets in the mainland and Hong Kong, Macao and Taiwan reached 465.

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Formal brand: seven wolves are also hard to carry the rent pressure.

If

More is the impact of the electricity supplier, then the relatively small impact of many domestic brands are actually also encountered large-scale customs shop baptism.

Data showed that seven wolves had closed 73 stores in the first half of this year, 134 stores in the first half of the year, 53 in Guan Nu Di Lu and 46 in Hinur.

In the men's clothing listed companies, the seven wolves who had the largest number of stores actually closed 505 stores last year.

In order to cope with the continuing downturn in domestic clothing consumption, the company's target of closing stores in the beginning of this year was 50 to 100, and 134 had been closed in the first half of this year.

The situation of women's clothing enterprises is not so good, and its Esprit owns 38 brands in China last year.

Behind the frequent shutting down is also a sustained decline in performance.

Take the nine shepherd king as an example, the Beiqing Bao reporter saw from his half year report that the first half of the year was 971 million yuan, down 16.6% compared to the same period last year, and net profit was 204 million yuan, down by more than 30%.

According to people familiar with the matter, in fact, the revenue of the straight battalion in the first half of the year has not declined. The problem is mainly in the channel of joining, with a drop of more than 20%.

And the high hopes that the growth of electricity supplier channel revenue is not satisfactory, basically around 10%, the growth rate of electricity providers than other industries is significantly lower.

"Tough, no price cuts, hard to sell."

Compared to their leisure brands, these

In fact, it did not encounter the impact of too much electricity supplier, and the embarrassing positioning of "high or low" is the key to its shrinking sales volume.

According to a salesperson of a local clothing brand store, they told the Beiqing Bao reporter that in the past, these brand names were basically built up by advertising and marketing, and the selling price was obviously higher than that of other brands. "In previous years, this kind of brand was still open, especially in the rich second tier cities, but in the past two years, more and more consumers are seeking foreign brands, especially overseas shopping and the rise of Hai Tao on the price of these domestic brands."

It is hard not to cut prices, it is difficult to sell volume, once the price cuts can not support the high advertising fees, it will weaken the brand influence, and no difference from ordinary brands, which is the current predicament of these brands.

The salesman said.

It is understood that the embarrassment of this dilemma is particularly evident in many first tier cities and affluent second tier markets, so the centralization of these brands is also here.

In addition, the introduction of the "eight regulations" has also affected the men's wear brands to varying degrees.

In addition, the Beiqing newspaper reporter also learned that many of the most exclusive stores of clothing brands were listed before they went public.

According to a person familiar with the matter, pre launch a surprise sale, on the one hand, hoping to enhance brand awareness; on the other hand, it does not exclude enterprises to pack many channels of resources into the investment value of enterprises to obtain higher financing amount of "small abacus".

In such a mind, the quality of franchised stores is often not placed first.

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In fact, compared with Giordano and other leisure brands and the seven pack wolves, the Chinese sports brand represented by Anta, PEAK and 361 has gone through the baptism of the tide of shopping in advance a few years ago.

Beginning in 2012, under the influence of excessive inventory, the domestic sports brands began to lose weight and spend the winter in winter, and from the previous open shop war to the "closed shop competition".

Lining, Anta, XTEP, 361, PEAK and other sports brands are close to 3000 stores, of which PEAK and Lining have reached 1000 stores in 2012.

After entering the 2013, the closing trend of local sports brands has not subsided.

According to the results of listed companies, as of the end of last year, the number of authorized retail outlets of PEAK has decreased by 471.

And the scale of PEAK's stores is not the largest. Last year, the number of 361 outlets has reached 783.

In addition, last year, Anta also shut down 318 stores.

According to Beiqing Bao reporter, most of the sports brands in China come from Fujian. Almost the same product mode and marketing strategy also make these brands basically like a "fellow townsman".

"Serious lack of product homogenization competition is once the biggest weakness of China's sports brand. Once the oversupply of industrial products leads to serious inventory pressure, the first thing to react is the exclusive store system."

A sales official familiar with the sporting goods industry said that many domestic sports brand franchisees are adopting the mode of commitment sales. Once the market demand is weakened, the manufacturers are constantly pressing goods, resulting in the breakage of the store funds.

The most obvious example is that last year, many Chinese sports brands came up with the phenomenon of "discount". Many brands were 80 percent off and 70 percent off.

He said that such stores are basically joined by the family as a unit. Once the business is lost, a family will be put to death, so they will lose money to maintain cash flow if they do not sell urgent red eye.

"The reason why they do this is to see who can carry it to the end, and the last ones may not fall.

But this way is like drinking poison to quench thirst, and many stores end up losing money after losing money.

Hidden dangers of commercial real estate bubble

A salesperson from a sports brand in Fujian told the Beiqing Bao reporter that in the past few years, when the sports brand clothing sales were the hottest, manufacturers in order to maximize market share, the coverage rate was often regarded as the first assessment index, and all of them were rushing to use the street style shop.