The Expansion Of The First Hongkong Flagship Store In The Chinese Market Is About To Start.

In addition to the upcoming flagship store in Hongkong, it opened stores in Shanghai, Chengdu and other places. After last year's show, the brand also added 3 stores in Chongqing, Beijing and Suzhou. In January this year, the whole category of Guangzhou Tai Koo Hui store was also open.

Taking advantage of the "east wind" of Hongkong's retail recovery, the expansion of China's market has been accelerated.

American underwear brand Victoria's Secret last year took over the Forever 21 flagship store, which has been completed at JINGWAH center in Tongluowan, Hongkong, as the first flagship store in Hongkong, and is scheduled to open in July 17th.

Although Wei entered the Hongkong market as early as 2013, it was limited to offering perfume, cosmetic bags, small leather goods and accessories, but did not involve the core underwear business.

Khalid Rouissi, executive director of ValiramGroup, Hong Kong and Macao, an authorized Asian agent, explained earlier that Chinese women are different from American women. It is not appropriate to directly sell underwear to the US market in Asia, and some investors think that the underwear is not in line with the needs of Chinese women.

In fact, in the whole Chinese market, it did not adjust products until 2016, and sold underwear products. It began to recover more than 20 stores' management rights from Chinese agents and entered Tmall flagship store in the same year. At present, the number of fans on Tmall has reached 2 million 33 thousand.

Tmall's data show that last year's double 11 turnover was 10 times that of last year, ranking second in Tmall brassiere international brand. Double 11 initial 2017 Wei Shanghai big show the same day around the robe of the same day ranked third of the transaction volume.

In addition to the upcoming flagship store in Hongkong, it opened stores in Shanghai, Chengdu and other places. After last year's show, the brand also added 3 stores in Chongqing, Beijing and Suzhou. In January this year, the whole category of Guangzhou Tai Koo Hui store was also open.

Shanghai launched its flagship store in March last year.

Some analysts pointed out that the high-profile entry into China in March last year reflected that the US market was full, and the brand needed to open up new growth points for stagnant performance.

According to fashion headline data, the first quarter net profit of virgin parent L Brands fell 49.5% to $47 million 500 thousand in the first quarter, and sales increased to 7.8% to 2 billion 630 million dollars over the same period, less than that of Wall Street analysts.

As for the reasons why sales and profits are out of sync, Amie Preston, chief investment officer of L Brands, said that during the period, the price of underwear should not be reduced to attract passengers, resulting in a decline in profits. However, the executive did not disclose specific price cuts.

However, Randal Konik, an investment banking Jefferies stock analyst, points out that continued price cuts will further negatively affect the performance of L Brands, especially when the cost cutting behavior spreads to its brand PINK.

For millennial consumers, PINK has been seen as a driving force for growth of L Brands in terms of marketing and product positioning. But the last trump card is also hard to escape from price misfortune or show that its consumers are losing large areas.

In this regard, data agency EBITED through research shows that the price reduction is also helpless. According to the analysis of 80 underwear retailers including the world trade organization, sales of steel braced underwear decreased by 50% compared with the same period last year, while the lining bra decreased by 22% compared with the same period last year. The overall sales of traditional underwear sales dropped sharply. On the contrary, new underwear without steel ring increased by 18% compared with the same period last year, and sports underwear grew by 27%.

For underwear manufacturers, this trend is very important, because the price of underwear without steel ring is 26% cheaper than the market average price, and from the production point of view, the less material used means lower cost. When this type of underwear is sought after by the market, this means that its competitors are quickly capturing a large number of consumers at a lower price.

Hongkong's retail industry grew again, and its sales increased 24% to HK $20 billion 900 million last year.

Now, it will turn its attention to China, which is not yet mature in the underwear market, or to compete fiercely for cost saving and avoiding the local market.

On the one hand, sales in the Chinese market are close to those represented by Wei Jeanne. Underwear On behalf of factories, and more importantly, it is different from that of the west, which has become popular in sports and leisure.

According to one data, the consumption of underwear for British women in 2014 was 884 yuan, while that of French women accounted for 20% of the total clothing expenditure. Over the same period, the consumption of underwear for Chinese women was only 200 yuan, accounting for less than 10% of total clothing expenditure. On the whole, Euromonitor predicts that the retail value of Chinese women's underwear market will reach $25 billion this year, which is two times that of the US market and will grow to 33 billion US dollars in 2020.

At this time, the market occupies a large store in Hongkong Tongluowan business circle. Before the Forever 21 lease expired, it was at the hard time of Hongkong's retail bottoming. According to the fashion headline data, the brand settled in the lot for the first month, which amounted to 11 million yuan, followed by 1 million yuan per annum, and the monthly rent rose to 13 million 800 thousand yuan by 2016.

As early as Hongkong retail industry In the recession, the rental of the shops represented by the Kowloon warehouse has started to decline. The rental market of another high-end shopping mall in the next 5 years will also be reduced by 15%. Deng Juming, the industry insider, admitted that the sharp decline of mainland tourists directly brought down the rent of the core area by 30% to 40%. According to sources, the monthly rent of the store was lowered to HK $about 8000000 from Forever 21, which means the average daily rent is nearly 300 thousand.

Surprisingly, Hongkong's retail industry, which has seen three years of sluggish growth, has been showing signs of recovery from luxury consumption recently. Since March 2017, the value of total retail sales in Hongkong has recorded a nine straight rise, and the growth rate has also been accelerating. In May this year, double-digit sales rose and the total sales volume increased by 12.9% to HK $40 billion 500 million.

According to PWC, the retail market in Hongkong will continue to improve in 2018, and the retail industry will grow 4% to 6% this year, that is, 465 billion to 4800 billion yuan, and the overall trend is expected to last for five years.

The improvement of the retail environment is undoubtedly a good news for Hongkong. The first Tongluowan flagship store is located in the times square, which is crowded with high-end brands. It has always been the preferred shopping place for tourists to visit Hong Kong.

SeekingAlpha pointed out that L Brands will set up 10 new stores in China this year. In view of the increasing consumption power of the middle class in the mainland, the group will expand its market momentum or extend to 2019.

Another analyst said that in recent years, China has launched a large flagship store in China to strengthen it. market In the middle and high-end positioning, its products have a higher premium in the mainland than Europe and the United States, which may be a new turning point for the deep price and the decline of performance.