Baleno latest results announcement is still not able to bring good news. Recently, Baleno parent TEXWINCA released fiscal year ended March 2014 results announcement 31, the Group's total revenues decreased by 12.4% to HK $ 9.86 billion. In addition, the closed shop in the local markets also continued, in which the number of stores in the Mainland market closed up 388.
Closed shop, revenue dropped, apparently Baleno being troubled and operating weakness, what exactly is the reason for the smash hit once in the last century Baleno into a corner?
Closed shop tide
This announcement shows TEXWINCA retail and distribution business in the reporting period, net sales decreased by 16.5% to HK $ 4.816 billion, accounting for 48.8% of turnover, which in 2013 accounted for 51.3% in comparative decline .
By brand watch, Baleno achieve net sales of HK $ 2.754 billion, down 9.3%. For the overall decline in net sales, the company said, the mainland continued sluggish consumer demand. Many local retailers continue to control excess inventory markdowns.
In addition, the ongoing adjustment of retail stores has become an important means to improve the efficiency of the company.
During the reporting period, TEXWINCA Mainland, Hong Kong and Macao, Taiwan, the number of stores have different degrees of reduction, which is more ferocious mainland, closed 388 stores accounted for 10% of the 31 March 2013 the total number of stores 3820 .
In fact, just the Baleno, Jeanswest, etc. Similarly Metersbonwe popular clothing brands are caught off store tide. According Metersbonwe calendar year results announcement shows that in 2012 the company's main business income of 693 million yuan, down 37.42%, in 2013 the company's main business income of 428 million yuan, down 38.18%, the first quarter of 2014, The company's main business income of 86.04 million yuan, down 32.46%.
In recent years, Metersbonwe accelerate the pace of closed shop in 2012, Smith Barney closed the opening of a three-year Shanghai Huaihai Road 2000 m2 ME CITY flagship store in 2013, the number of Smith Barney closed up more than 200 stores. Early 2014, Smith Barney's high-end sub-brand "MECITY" exit Beijing Wangfujing, blind expansion, falling profits or incentives.
Metersbonwe during the late 1990s to 2010, the rapid development of the apparel industry nurture local clothing brand, with the support of the people under Smith Barney made a brilliant performance, but the face of the impact of international clothing brands, Smith Barney was unbearable blow, after careful study found that the brand value of Smith Barney is like a mirage, illusory.
"Do not take the unusual way", "wearing nature" of such a familiar ad seems to have been a long time not heard, former crowded stores have been declining, the store counter area are constantly compressed. Among the city's High Street Pu already difficult to find traces of Baleno and other popular brands.
Old brand?
Last century smash hit Baleno, Giordano era seems to have become the past, these old brand has obviously unable to meet the individual needs of consumers.
High inventory becomes inevitable difficulties faced by these brands. Chairman of Commercial Management Group Haozhou Ding told the media that, in recent years, China's garment industry operates is not good, many domestic clothing brand hit the high inventory problem. After 90 representatives of young consumers focus on fashionable clothes requires cost-effective. Jeanswest, Smith Barney and other brands of the mode of operation can not keep up with market changes, clothing style update is slow. Under the previous mode of operation, a clothes come from design to production generally 3-6 months time, and then mass production market.
But Uniqlo, ZARA and other international fast fashion brand completely overturned this mode of operation, greatly reducing the time to market of new products. In ZARA, for example, a new product to market in the fastest possible within two weeks. Fast fashion brand is a small amount of production, but the style is diverse, and choose a large price range.
Dinghao Zhou said, this is undoubtedly meet the needs of young consumers.
The face of competition and market changes blind transformation, has become another flaw on the old brand and way of existence. The end of June 2013, starting in autumn Metersbonwe flagship series "NFT New Energy Technology cashmere" products in Lhasa and Lijiang two. Pricing in the 300-500 yuan down beauty Bang Nami velvet warm winter clothing, into nano velvet vests, jackets and other type version, ten colors.
Its official definition of "new nano velvet heat", the China Feather & Down Industrial Association Yaoxiao Man openly questioned its alleged misleading consumers, illegal propaganda. "Nano is actually velvet polyester fiber, less expensive, intends to Metersbonwe regard to the nano-fibers and polyester velvet by direct comparison and down, but in reality is the cost of adding the technology fluffy cotton, natural concept. "Obviously, such a transformation, and can not be recognized by the market.
The Metersbonwe its high-end sub-brand "ME CITY" Since listing, targeting star effect, signed Aaron Kwok, Jay Chou, Angela, Pan Hong Kong stars such as supermodel and Europe. 2009, with the U.S. drama "Prison Break," the hit, Smith Barney hit heavily signed drama starring Wentworth, spending huge sums in Shanghai Huaihai Road staged a show as much as the opening of the Hollywood blockbuster "Lord of the Rings" in the Wizard Prince actor Orlando Bloom has also appeared on "ME CITY" posters.
Expensive signing the moment the most popular star, intent to obtain higher market returns. But with the high prices put the sign does not match the star is, the brand has not been carried out in product design peer into, "ME CITY" fast fashion concept of high-end positioning and product design seriously out of line. Positioning "fast fashion", copy "ZARA", "H & M" successful experience, this seemingly easy path to success, Smith Barney has gone quite difficult.
First, the low-end product design tends to younger, style and the main brand "Metersbonwe not much difference;" fast fashion "wins in closely follow the trend, quick word at the head," ME CITY "product line, although enough round, but lost in the product updates too slow, compared with the market similar products, homogeneity is serious; underestimation of the market, buyers do not have a mature system, and the lack of business model aspects, resulting in excess inventory; while high Pricing on the main brand, but also to target groups lopsided.
Combined entity and electricity supplier
For transformation of enterprises, the general manager of real yarn Clothing Co. Lizhong An said that it is essential for companies to upgrade. "Now, Jeanswest is vigorously carry out network marketing and this is a means for selling upgrades."
According Lizhong An revealed that in 2013, Jeanswest by selling clothes online more than a few one million, with sales of 260 million yuan. Sales this year are expected to reach 400 million yuan. By electricity suppliers and other companies selling products in different channels, Jeanswest Jeanswest electricity supplier channels entirely by ourselves.
In addition to self-owned stores, currently Jeanswest also has nearly a thousand stores, talking about how to avoid the problem of online and offline snatch when Zhongan Li said: "We are engaged in the electricity business, if Jeanswest engage, for Jeanswest brand building unfavorable In addition, in the interest of preventing damage to the franchise, but also spared no effort Jeanswest Jeanswest brand in online sales mainly some special goods and some shops do not have the goods, but also a number of stores mainly in underdeveloped provinces in these regions Online sales are very small, almost negligible. "
Facing difficulties enterprise development, and the rise of the huge pressure on the stock sell electric mode, Smith Barney is also the end of 2013, will have two years to operate independently of the electric business platform retracted state share listed companies in vivo. Year-end inventories decreased by about 430 million yuan over the beginning.
O2O mode switch, which is the combination of physical stores and e-commerce, the sales model of the success stories of Suning Appliance. Smith Barney plans to transform into outlets O2O new concept store experience, currently has six stores in different cities to complete the upgrade.
But Haozhou Ding said, in fact, subject to the impact of changes in the market, high inventory of clothing is difficult to avoid, sell the goods on the store in the hands of franchisees. In order to inventory, franchisees had to deal with a discount clothing brand image is affected. Clothing brand manufacturers recycled stock merchandise, and through electricity providers, limited sale digestion, profits will also decline. Part of the clothing brand of choice in platforms such as Taobao shop, commodity prices impact the formation of the franchisee manufacturers dilemma.
Clearly, relying solely on restructuring the sales model, can help these brands out of the woods yet inconclusive. The adjustment of product structure, re-identify the location, so that people can adapt to consumer psychology and habits, the next question is perhaps these brands need to seriously consider.
This article from the Bundy line | Bondi yarn - Xu Sheng finishing line industry publication.