In The Future, Domestic High-End Clothing Brands Will No Longer Exist In Shopping Malls?

People living in Beijing, Shanghai, Guangzhou and Shenzhen will find that the sense of existence of traditional (older) ladies' clothing brands in department stores is getting weaker and weaker if they carefully observe them. The domestic brands that used to occupy the best position in department stores have been squeezed out and replaced by more popular overseas brands with English names and young styles.

Maje, Sandro, IRO, Laur è l and other fashion brands that were very popular overseas shopping in the past few years appear more and more frequently in department stores in Beijing, Shanghai, Guangzhou and Shenzhen, and more and more stores are opening in the mainland. You can easily buy these brands of clothes without overseas shopping or purchasing.

And there is also good news. If you are a senior fan of Acne Studios, you may see the brand directly in the shopping malls in mainland China in 2019. Because Acne Studios has become a mixed blood brand (with half Chinese genes) from a Swedish brand.

On December 24 last year, IDG Capital, a domestic investment institution, and Hong Kong fashion group I.T jointly acquired the shares of Acne Studios, holding 30.1% and 10.9% respectively, so IDG directly became the largest shareholder of the brand. Then, the day for Acne Studios to settle in mainland China is just around the corner!

Acne Studios originated in Sweden and is famous for jeans. The brand is mainly cool, simple and practical, which can stand the test of time. It is also the favorite of many stars. From Quan Zhilong to Yang Mi, they have brought goods to this brand. Now, this brand will enter China, happy fans, but sad clothing boss! It is bound to pose a great threat to domestic designer brands of the same type.

IDG is not the first case to acquire a foreign independent designer brand, even a rising star! Golith Group, which is located in the same building as WOW-TREND, is more eye-catching in terms of acquisition of overseas brands+capital operation+operation+brand marketing.

Your impression of "Golith" may still stay in the "Older Lady" clothing store brand on the third or fourth floor of the traditional department store. However, this company has spent nearly 800 million yuan to acquire three overseas brands and one Shanghai e-commerce agent operator Baiqiu in a row more than a year since its A-share listing.

Golith has acquired five well-known overseas high-end fashion brands through capital operation: German high-end women's wear brand Laur è l, American luxury fashion brand EdHardy, French luxury designer brand IRO Paris, American designer brand VIVIENNE TAM and Belgian designer brand Jean Paul Knott.

The acquisition of overseas brands has brought considerable profits to Golith Group. In 2018, Golith had 566 terminal stores nationwide, with sales reaching 1.736 billion in the first three quarters. It increased by 30% - 40% year on year, and the annual profit is expected to exceed 300 million yuan.

Today's young people are more appreciative and knowledgeable, and more inclined to these trendy brands with a sense of design. Hot girls once ran into beautiful women in Vivienne Tam windbreaker in the elevator.

It is worth noting that the current strong growth of Goliath mainly depends on the overseas brands acquired, rather than the main brand of Goliath, Goliath Ellassay, which is independently developed and produced by Goliath.

As early as 2016, the number of Golith Ellasay stores decreased from 347 in 2015 to 341, with a total revenue of 797 million yuan, a year-on-year decrease of 3.32%. By 2018, this data may also have been declining. We have reduced the investment in our own brands and made more efforts to operate overseas brands acquired. According to Golith, the future strategic goal of Golith is "a Chinese high-end fashion group from a single brand to multiple brands".

Landi, the director of Golis Group, said to the media that they would continue to acquire about 10 brands in the next five years in order to cover more categories and a broader population.

The goal of Goliath is no longer to strive for independent research and development. Goliath Ellassay, its brand, does not have its own OEM factory, and its decreasing stores may also be a new way of survival for the weak market performance of its own brand in order to adapt to the increasingly fierce competition in the clothing industry.

I think that Golith's goal - "China High Fashion Group" should be more similar to LVMH Group. This group was set up to acquire brands at first, and as long as it is concerned with fashion, it is always involved. There are countless world luxury brands under its jurisdiction, such as LV, Dior, C é line, Givenchy, Fendi, etc. With many brands, LVMH's sales are rising year by year, thus creating a world-class luxury goods group.

"Acquisition" has been valued by more and more groups. Shandong Ruyi Group acquired SMCP, the parent company of French fashion brands Maje and Sandro, with 1.3 billion euros in 2016.

Shanghai fashion brand Vignes bought Teenie Weenie from Korean ready to wear brand Yilian for 5.7 billion yuan.

Anta spent a lot of money to acquire Finnish sporting goods group and Amer Sports, the parent company of Archaeopteryx.

More and more traditional companies that used to be in the textile and clothing industry are finally waiting for the opportunity to enter the peak of the fashion industry. They use capital to feel that easy can bring benefits: mergers can make up for their own short version faster, stronger and more convenient.

More and more mergers and acquisitions are squeezing the survival environment of Chinese clothing brands. In the future, the challenges faced by domestic independent brands will only become more and more severe. " The growing number of "mixed blood brands" is a double-edged sword for Chinese garment makers. The bad side is to seize market share, and the good side is to promote more domestic brands to do research and development and upgrade their structures.

I wonder how many Chinese people will be willing to spend their efforts and experience to do their own research and development if department stores become the world of overseas mixed blood brands competing for market share one day?