Electricity Supplier Impact, Entity Shop Closed Trend

In 2016, the Shanghai Baleno Kingdom Limited was sold by the parent company Hongkong de Yongjia group at a price of 250 million yuan, the potential dealer authorized by Baleno and Shanghai Hui Ye Industrial Co., Ltd. For the reasons for this sale, the company said that the company is restructuring, selling can optimize resources.

Coincidentally, Baleno's parent company, De Yongjia, is also. Uniqlo One of the subcontractors.

　　 Shanghai companies are sold cheap

Founded in Hongkong in 1981. Baleno In 1996, it was bought by Hong Kong listed companies Germany Yongjia Group Co., Ltd. This brand once became a household casual clothing brand, also invited Andy Lau, Faye Wong and others to be the spokesperson.

In 2016, he announced that Baleno Kingdom Ltd, a non wholly owned Affiliated Companies, will sell Shanghai. Baleno apparel All the shares of the company limited to Shanghai Hui Ye Industrial Co., Ltd., the cost is 250 million yuan.

In response to this sale, De Yongjia's response report said: "the seller (De Yongjia) is undertaking the reorganization of enterprises. The sale of Target Corp (Baleno) can optimize assets and initiate the strategic development of the seller. In addition, the buyer (Shanghai Hui Ye industry) is a potential authorized distributor of the seller. The sale of Target Corp to the buyer can help develop strategic business cooperation between the buyer and the seller. "

Information from industry and Commerce shows that Shanghai Hui Ye Industrial Co., Ltd. has a very complicated business scope, including investment management, investment consulting, corporate image planning, computer hardware and software development, development, sales, daily necessities, hardware and electrical, chemical raw materials and products sales, as well as landscaping.

"Baleno in Shanghai is actually a sales company. According to the current business situation, dozens of shops sell 2.5 billion, (De Yongjia) not only do not lose, and may even sell expensive. fashion Clothes & Accessories Industry retail expert Min Guangya said in an interview earlier.

　　 Closing shop is a big trend.

The golden age of Baleno was the 1995-2005 year event, when domestic brand competition was not yet complete, and foreign brands had not yet been invaded. Baleno Once dominated by the central parts of the big cities, but due to the little change in styles, Baleno will normally be renewed in four quarters.

Such a new speed can not be compared with the fast fashion brands such as ZARA, which gradually come to lose its appeal among young people.

In 2012, 4044 of Baleno's stores in the mainland reached the peak of development. However, the crisis behind the boom also approached. Backlog of inventory Baleno The biggest trouble in March 2014 is that the stock of German Yongjia has reached HK $1 billion 898 million.

In this regard, Baleno opened the store and strictly control the inventory of "SOS strategy". In 2011-2015 years and four years, 617 stores were closed, averaging 12 stores a month. As of September 30, 2015, the total number of Baleno stores decreased to 2849. There are only 43 stores in Hongkong, 54 stores in Shanghai, and 56 in Beijing. Guangzhou is a little better and has 60 branches.

Even in second tier cities, Baleno The situation did not get any better. In June 26, 2016, Baleno closed all in Chengdu Chunxi Road business circle, leaving only one store in China.

"Baleno's large-scale closes show the company's contraction strategy, and its negative effects are mainly manifested in or further lost the market, because it is Casual Wear In terms of brands, the number of stores is more important. If the market closes on a large scale, the market share may be further reduced. "For this reason, Xiong Xiaokun, a consultant of CIC light industry, analyzed the times weekly reporter.

The large-scale closing strategy does not bring any effect to brand management. As of September 30, 2015, sales in Baleno's mainland market increased by 3% to HK $1 billion 768 million, while total sales grew by only 0.5%.

For the electricity supplier, Baleno It is also known later. It is understood that although Baleno has its own flagship store on Taobao Tmall, its shop sells a relatively simple variety of goods. The main selling items are T-shirts, socks, slippers and so on. At present, the first place in the sales list is a man who sells for 45 yuan. T-shirt The monthly sales volume is 40818, far from that of UNIQLO, which is eleven.

senior clothing "The most important reason for the decline of Baleno is that the market has changed so fast that new brands and international fast fashion brands have entered the Chinese market," said Ma Gang, a leading expert in the world. Online retailers The impact is also very large. Leisure brand The change is not big, and the location is aging due to long time precipitation.

　　 The parent company is having a bad time.

　　 Baleno Poor performance, the parent company Tokunaga Kaya is not good.

At present, the business of Germany Yongjia group is mainly divided into two parts: textile and retail. The former is mainly processed by generation, while the latter is retail business represented by Baleno. In addition to Baleno, which accounts for 70% of sales revenue, there are also four brands of S&K, Ebase and I.P.ZONE.

OEM is a good part of his performance. Data show that at present, the company has more than 50 American customers, including Nike and Gap, which account for 60% of the company's total revenue, Japanese customers (such as UNIQLO) account for 24%, and European customers (such as Adidas, H&M and Marks& Spencer) account for 10% of revenue.

On the customer side, Uniqlo It is the largest customer of the company, accounting for about 10% of its revenue. Gap, Nike, Polo and A&F each account for 4%-5% of company income.

Compared to the growth of the foundry service, the retail industry is much more bleak. According to the official announcement of the German wing Jia group, from the second half of 2015, de Yongjia began selling its trademarks frequently. Except this time. Baleno Shanghai company in 2015, Germany continued to sell four trademarks, showing that in October 27th, the "KENTEX" trademark was sold. In November 9th, the "KACO" trademark was sold. In December 21st, the "Magic Box" trademark was sold. In December 24th, the "Time Magic" trademark was sold.

except Baleno Another famous brand in Hongkong that year. Giordano It is also hard to escape. It is understood that the total number of Giordano stores in the world is 2359, a decrease of 120 from 2479 in the same period last year. The mainland of China has 1003 stores in the three quarter of last year, and the number has now been reduced to 913.

For the fiercely competitive mainland garment market, the golden age of Hongkong brand seems to be gone forever.