Luxury Leather Group Faces The Challenge Of Pformation.

In the past ten years, China's retail industry is too easy to make money, almost everywhere gold mines to be dug up, P.

The top executives of the retail industry express their nostalgia for the past ten years on different occasions.

With the continuous improvement of the economic situation and the rapid expansion of purchasing power, domestic and foreign well-known brand manufacturers have been able to "earn money lying down".

The sales volume of the retail industry has reached a new high, attracting international brands from all levels to pour into the Chinese market.

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< p > however, the best picture seems to have passed.

Economic growth tends to be gentle, e-commerce is rising rapidly, and the strict control of state public funds is becoming the three difficult problem for the traditional retail industry.

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Less than P, the number of store switches has been a couple of happy worries. In China, luxury goods and fast fashion groups, which are used to making money in the future, are being forced to face the pformation test of chess to the middle of the game.

Foreign groups are also in urgent need of new competition.

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< p > < strong > saturation of the first tier cities: "shopping" two or three lines < /strong > /p >

A group of hot male models in front of the flagship store in Shanghai, Shanghai, in mid April, P, became one of the hot topics of micro-blog, WeChat and other clients in the A&F.

This is exactly what Abercrombie&Fitch, the A&F, is the marketing of the first store in mainland China.

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< p > in early March of this year, the famous fast fashion brand NewLook in Britain officially launched its first store in Shanghai, announces its full entry into the Chinese market.

Its pricing from products to target customers is similar to those of ZARA, GAP, H&M, C&A, Muji and UNIQLO.

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< p > at the moment, only one place in Xujiahui, Shanghai (market share trading point), concentrates on all the stores of all the brands mentioned above.

The worries of "fast fashion saturation" in the industry experts are gradually becoming reality.

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< p > however, even before the evaporation of consumption enthusiasm, even the high-density shop pattern and the white hot competition situation still can not affect the speed of the layout of fast fashion group stores.

These enterprises will compete in the first tier cities in the number of shops and flat targets, and will gradually compete with the two or three tier cities. The fierce competition of bayonet is rare.

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< p > reporter learned that in 2014, the H&M parent group Hennes&MauritzAB will open 80-90 new stores in China, the number of new stores is the largest in its global market.

InditexSA, the largest clothing retailer in Spain (Zara parent company), will also maintain more than 50 stores in Huaxin this year.

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In addition to that, P, which has more than 80 stores in China at the end of last fiscal year, has introduced its first parity brand OldNavy to China for the first time last month, and plans to set up 30 Gap brand stores and 5 OldNavy stores in the current fiscal year, thus making the number of its Chinese shops exceed 100 in the month of.

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P, Japan's home life chain Muji has also revealed its willingness to expand rapidly in the near future. Its senior executives expressed the hope that the number of stores in China could expand from 100 to 1000.

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< p > such a number of stores will obviously not be concentrated in the first tier cities. The cultivation of the two or three line cities has been put on the agenda of various groups.

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< p > however, the expansion of channels is not achieved overnight.

A well-known clothing company official told reporters that in the first tier cities in China, the fast fashion brand business of foreign capital is smooth sailing, because this part of the market is quite close to the mature market abroad.

However, the situation in other cities may be different. "Second tier cities half understand, three line cities do not understand, four line cities can not catch up".

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< p > and the situation between the two or three cities in China is also very different. For example, the consumption level and idea of Chengdu and other cities are close to those of the first tier cities, and the promotion of fast fashion will naturally be more successful.

But many cities still have a long way to go before they really accept fast fashion. These markets are still the main brands of domestic brands.

The leader said frankly that the most difficult point is how to balance the cost of resources and market opportunities.

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< p > it is worth noting that decisions and coordination of these large foreign companies usually depend on their global structure.

But the decision makers at the core of the headquarters tend to stay away from the Chinese physical market. This situation may lead to constraints when foreign fashion giants go deep into the two or three tier cities.

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