The Fast Fashion Camp Begins To Split Up. Forever 21 Will Close The Flagship Store In Hongkong.

Hongkong's fashion retailing is still not improving. There is market information that the American fast fashion Forever21, which is selling at a low price, will leave the flagship store of 6 floors in Hongkong JINGWAH center after the expiration of the tenancy term next year. It will take the Victoria's Secret of the American underwear brand. The source said that the monthly rent of the shop has plummeted by half to HK $7 million due to the difficulty in making the clothing business in Hongkong now.

The prince and chief executive of jewellery, Prince and jewellery in the retail of luxury goods

As early as I said, Hongkong's retail industry, like SARS, is not a labor pain. It has no prospect. Now that the number of mainland tourists is decreasing, the rent of the core area will be reduced by 30% to 40%.

The rapid change of fashion retailing has led to the split of the fast fashion performance camp. Apart from the continued growth momentum of ZARA, the brands such as GAP, H&M and UNIQLO began to grow slowly. Earlier, the US media reported that Forever 21 was in financial difficulty.

For the Chinese mainland market, Forever 21 also missed the best market timing. The first tier market was almost divided by ZARA, H&M and UNIQLO, and it could only retreat to the two or three line market. At present, the size of the shop is still far behind the top three, and there are only 14 outlets in the mainland.

Fast fashion Forever 21 enters high profile in September 2011.

Tongluowan has become the first flagship store in the territory. It has signed a 6 year long lease and will include the old tenants, including Giordano, Watsons and so on. It is twice as high as the old ones. The rent in the first year will be as high as 11 million yuan, and the rent will be increased by 1 million yuan per year and the latest rent to 13 million 800 thousand yuan a month.

However, as business became more and more difficult, Forever21 launched the rent for the shops a year and a half ago, but failed to find other merchants at the current price, and finally to support the lease until next year.

Some analysts say Hongkong

In the recession period, luxury brands such as Gucci and LOUIS VUITTON had high demand for rent reduction or closing stores.

COACH abruptly withdrew from the 4 Tier flagship store in central last year, becoming the first international luxury retailer to pull out of Hongkong's core stores in recent years.

There is a forecast that Hongkong's fashion retailing industry is showing signs of improvement, and shops rent will fall by at least three to 40%.

Last April, Adidas took over the store. Insiders said the final rent was about 5 million to 5 million 500 thousand yuan, which was 25% lower than that of COACH at that time.