The Location Of Traditional Clothes And Fast Fashion Brands

To date, these traditional brands are still playing the leading role of many second tier city casual wear market leaders. With the accelerated pace with international fashion, the fast fashion clothing brands such as ZARA and H&M that have entered the Chinese market in the past two years have developed rapidly and become a new popular fashion of "City clothing".

Baleno, Gioradano and other traditional brands have been firmly occupied by stable market share with the positioning gap, price advantage and good reputation established over the years. ZARA, H&M and other brands are popular in the mainland by virtue of the fast fashion fashion concept and the advanced design style.

The brand of the two types of audience, the strategy of opening the shop and the way of thinking of the whole management share the half of the current casual wear.

People's impression of Baleno and other traditional casual wear brand stores will appear in different parts of the city in different forms such as street shops, counters and underground shops, but this situation may gradually change.

The appeal of Baleno, Metersbonwe and other representative brands to expand the audience and get rid of the "mass brand" image is increasingly strong.

Baleno has more than 30 brands, including many high-end brands such as BALENO UBRAN and Ebase. Metersbonwe has launched a high-profile brand Me & City, and has built or rebuilt many sub flagship stores in one breath; Gioradano has directly promoted the brand positioning to urban white-collar and social elite.

Although the popular marketing mode of clapping and selling in the short term and the clamour of stores will still be the pronoun of traditional brands, but with the evolution of urban business and upgrading of infrastructure.

Traditional brands are experiencing double changes in location and brand strategy in the top tier business circles of the first tier cities.

As the biggest operating cost comes from rent, Ping efficiency is the core of traditional brand store operation.

Ping efficiency is a common term derived from the commercial sector in Taiwan. It refers to the volume of output per flat area (1 =3.3 square meters). The industry usually refers to the annual turnover of business output per square meter.

In the commercial location of high-density pedestrian flow, maximizing turnover is the most effective way to ensure Gaoping's effectiveness by using the smallest store area. Therefore, the street store form has become the top choice of traditional brands in the top tier cities of the first tier cities.

Take the famous Xidan Business District of Beijing as an example, Xidan in 90s showed a "small, multi, dense" business characteristics, and the main roads and East and West shops are very lively.

Xidan North Street West has become a large number of traditional casual wear brand street shops, driven by Baleno, JeanWest, Metersbonwe and other major brands, XXEZZ (Athers), Robinhood, Gioradano, S K & amp; K (Baleno sub brand), Bossini and a large number of brands of 100 square meters street shops lined up.

Although the rent is more than 100 yuan / square meter / day, but because of the dense flow of people in Xidan, most street shops can still use their limited area to create annual turnover of around 10 million yuan, and the bustling scene in the store is the true embodiment of the Gaoping effect of the street store.

With the upgrading of urban commercial facilities, the street shops in Xidan gradually declined and disappeared from the early stage of their popularity. They eventually withdrew from the main street of Xidan North Street and replaced by a large number of new and upgraded retail property projects such as Zhongyou department store, Capital Times Square (MEEI department store) and Jun Tai Department store.

In the process of self-improvement in the first tier cities, the traditional brands are faced with the choice of leaving the top business circle or moving to commercial projects.

The expansion of audience groups and the pursuit of the image of "mass brand" decide that traditional brands only choose the latter.

For the traditional brands that street stores are familiar with, the shopping centres of the top tier cities in the first tier cities are particularly unfamiliar.

As mentioned above, Ping efficiency is the core of traditional brand store operation.

The pformation from "street to building" brings about the reduction of the total number of people and the uncertainty of the flow of people. It is difficult to guarantee the efficiency of the flat, and the traditional brand can hardly bear the rent of the gold position in the shopping center, which is obviously "everything determined by the location".

Contrary to thinking.

Once in the era of street shops, Baleno, Gioradano, etc., after entering the two floors of the underground city of Xidan, which are located close to the brand target, the flat effect quickly dropped to the 1/4 of the street store era.

At the same time, the rental level dropped to about 1/5 of the street store because of poor location efficiency.

Under the low rent level, enlarging the management area and highlighting the brand characteristics will be a better choice for the first tier cities and the second tier cities.

From the fiery gold location Street store to the warm and dry shopping center edge location store, and from the important profit point to the profit and loss balance brand display window, this is the traditional pformation of the traditional casual wear brand in the first tier city's top business district location and brand strategy.

Let's look at another brand led by ZARA.

Within 2 years of entering China, ZARA has quickly become one of the backbone of casual wear. Its concept of "fast fashion clothing" is likely to become the trend of the future garment market.

Due to its high positioning, the selection strategy of "fewer but better" and "golden location" is more suitable for ZARA, and the top shopping centers and popular shopping centers naturally become the first choice for ZARA.

Unlike traditional casual clothing brands, ZARA has a relatively strong position in the game with shopping centers because of its strong ability to absorb people, enhance image and enhance business turnover.

The shopping center is willing to provide gold location for the project, and adopts the settlement method which is higher than the bottom rent and the business water point. (as the total amount of the water points is usually much higher than the bottom rent amount, the actual settlement uses the method of deduction).

Rent is traditional.

The main cost of brand stores is, therefore, brand stores such as Baleno need to be higher than the level of rent. But for ZARA and other fast fashion brands, because the main cost of stores is the point of discount, there is no rent pressure, ZARA can decide the store area according to its own needs, and turnover is particularly important.

Therefore, in order to protect the high turnover, a good business atmosphere, steady flow of people and brand adaptability are more important when choosing a fast fashion brand.

Comparison

All over the world, ZARA has only 3 World stores in Beijing, including SOLANA and Xidan.

Due to their location slightly higher than the mainstream population in Xidan business district, with the reasonable consumption gap, ZARA Yuecheng store has created an annual turnover of nearly 3 times of the world level store with less than 800 square meters of area. If we use Ping efficiency calculation, ZARA Joy City store will reach 7 times of the world level store.

Because ZARA and Baleno are in the Joy City, we can make an intuitive comparison.

Baleno adopts the fixed rent method, while ZARA actually adopts the method of the point settlement, the actual rent = the annual turnover discount rate / area.

In other words, the rents of ZARA and other fast fashion brands are "made by themselves".

In the joy city project, the real "rent" that ZARA occupies the gold position is only 2 times that of the 2 level of Baleno, but it has created Baleno8 times of the flat effect, and the turnover is even 21 times.

On the whole, in the increasingly fierce competition of new brands and casual clothing market, "Baleno" has always maintained its own tone of development and occupies an inherent market share. However, with the strong brand appeal, the updated consumption concept, and the location advantages of "rent self determination" and "golden location", the fast fashion brand has been gradually approaching.

According to the current momentum, we have every reason to believe that the leisure clothing market of the top tier shopping centers in the first tier cities will become the world of ZARA and H&M in the future.