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Smith Barney, Baleno frequently shut shop local casual clothing to Go
Publish Time:2014-08-13 Hit:1523times

Over the past year, local casual clothing brand Metersbonwe, Semir, Baleno and other brands are frequently shut shop. 2013, Metersbonwe closed more than 200 stores, Semir it closed more than 700 stores. As of the end of March 2014, the mainland market Baleno number of stores closed up 388, accounting for 10% of total stores. By the end of June to early July, leisure clothing brand is trapped in a "closed the tide."

Fight cheap consumer stocks

Recently, the reporter went to the Xidan Cultural Square, once found metersbonwe shop has been a "Variety Dance King" instead. It is next to Semir store Purchasing Guide, Smith Barney has closed shop last month, asked the reason, shopping guide blurted out: "No money, dismissed."

In Xidan, KAMA stores decked out "five fold", "39 yuan," the words of the brand, Semir, pure shop to "buy one get one free summer audience" of concessions to attract customers, Baleno cited in the doorway, "129.9 element two "discount cards, low prices, big sale has become a common trend in several local casual clothing store.

In recent years, the international financial crisis has brought to the Chinese garment industry raw material costs, labor costs increased pressure. Meanwhile, the international fast fashion brands to enter the Chinese market, with products of fashion, the speed and quickness to seize a portion of the domestic market, domestic traditional casual wear brand impact.

Smith Barney, Semir and other casual wear brand in the late 1990s has founded after 2000 have been listed, and gradually infiltrated China second and third tier markets, became the market leader in China's casual wear brand. But in recent years, it has the advantage gradually being replaced by the emerging fast fashion brand, which 10 years ago swept the Chinese market, domestic brands are faced with the challenge of high inventories and frequently shut shop crisis.

Much favored by young contemporary FMCG brand, with a shorter refresh cycles, to meet the 80, constantly chasing after new psychological needs 90-store shopping guide mode of operation without opening the "supermarket choice" type of business model, giving customers buy more relaxed environment.

Compared ZARA, H & M, Uniqlo and other famous international fast fashion brands, China's casual wear brand "not fashion, not fast enough," the characteristics revealed, and because the traditional business model is not well adapted to electronic business platform, domestic brands face multiple pressure, has entered the necessary period of transition.

Market model lag 

It is understood, from design, to sell clothing to put on the counter, the Chinese garment industry generally use 6-9 months, the international brand compressible to 120 days. In the family, fast fashion, GAP for 90 days, H & M for 21 days, ZARA window once every 20 days for the new. 

In contrast, domestic casual wear brand new addition to the slow, product homogeneity serious, style is easy Zhuangshan reasons for the decline of competitiveness. 90 Ms. Xiong buy at H & M, told reporters that favor high school traditional brands, but its style after the university found that a single, easy Zhuangshan, while FMCG brands wild style, the price is not expensive. Obviously, if you do not consider domestic brands of consumer psychology and the audience dressing style changes, it is inevitable, "left behind." 

According to the analysis, taking into account international FMCG brand young fashion consumers, consumer behavior partial impulse, limited spending power characteristics, to meet their needs through the fast fashion model. And most of the domestic apparel brand to join the main, two quarters ahead of ordering merchandise, brand re-orders based on the franchisee to sell production quotas, the whole process greatly increase the product life cycle, it is difficult to form a rapid product design, manufacturing, distribution patterns therefore lost pursue novelty consumer market. 

In addition, with open e-business models, part of a group of young transfer to the online consumer market, while traditional casual clothing has always been to go the cheap route, coupled with inventory pressures faced in recent years, so that electricity suppliers to undertake a brand sold inventory needs, the electricity supplier as consumptive inventory channels. Online price impact on the interests of franchisees, online and offline channels, the conflict is more intense, can not meet the electricity supplier's business model, resulting in the loss of traditional brands online market.
Products need to improve 

Faced with high inventory and pressure from the external environment, the traditional casual wear brands have responded. In mid-July, according to the "investor relations activities record" Semir clothing disclosure said that the current domestic casual wear business in the overall adjustment phase, the development model from simple extension and expansion of Health inward growth transformation. 

Pure and Semir brand through celebrity endorsements and expand the market to reduce the pressure, respectively, signed the current hottest actress Jun Ji-hyun and Jin Xiuxian Korea for brand endorsement. Meanwhile, the expansion of children's Semir clothing business, launched last year devoted to pure online men's brand, to follow ZARA take a small amount of a variety of routes. 

From 2014 first quarter report, the Smith Barney current operating income decreased 17.4% over the previous year, net profit decreased 15.3%. The same as the traditional brand Semir situation is relatively good, operating income grew 3.97%, net profit growth of 21.12 percent, instead of increasing children's clothing endorsements and business expansion, timely adjustment measures taken. 

One way to "star effect" after all brand marketing, but to meet the consumer group "low quality" consumer psychology is the business transformation of a permanent solution. 

Product quality is a direct factor in determining consumer behavior, traditional brands to the inventory, close unprofitable stores, it should also focus on product improvement, form a complete supply chain support and market rapid response.
Attention to online layout 

From the point of view of Taobao transactions, Metersbonwe, Semir clothing piece turnover number in the hundreds, while FMCG brand Uniqlo turnover and more to a few thousand piece. Visible to Uniqlo brand FMCG represented much more than a traditional open market brand. 

Online marketing is essential layout of the Internet era, but also a general trend, the vacancy means the loss of a large portion of the online market and consumer behavior, so the market is a local electricity supplier casual wear brand can not be ignored.
Smith Barney, who have tried to pure traditional channels and e-commerce combined with parallel dual channel mode, but not satisfactory. 2010, Smith Barney launched state purchasing network and build online brand, due to profitability is difficult to guarantee, to stop operating the electricity supplier business. With the end to begin to test the water pure e-commerce, in January 2013 the original brand of pure electricity supplier exit channels, online store and Lynx flagship store, shop Jingdong stop operations. 

According to the analysis, resource allocation and logistics facilities are not complete, online and offline channel conflict is a traditional brand often "shock" lost causes. Since joining rather than using the traditional brand Direct expansion mode, online and offline prices are not uniform direct conflict. 

In this regard, the development of the Internet in plain exclusive brand of merchandise online and offline conduct segmentation, different categories with different marketing positions. According to "A21" brand leader Chen Yuwen revealed that this year "A21" summer using more than 600 models covering a large number of models, and by quickly on new fast fashion model to attract users.

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