E-commerce shock, physical clothing store trapped tide

Just as "Double 11" once again set an online sales record, the offline physical clothing chain stores have frequently heard news of the closure of stores. A few days ago, casual wear brand Giordano announced the closure of 63 physical stores in the Chinese mainland in the third quarter. Experts in the apparel industry believe that due to the alternating effects of new and old retailers, the tide of store closure will continue to ferment.

According to the third quarterly report issued by Giordano, it closed a total of 74 retail stores in the third quarter, of which 63 were in mainland China, accounting for 85% of the total stores. In the past year, Giordano closed a total of 165 stores in mainland China, and its sales in mainland China, Hong Kong, and South East Asia have also dropped. The third quarter report also showed that Giordano’s sales in mainland China were HK$341 million, a decrease of 5% year-on-year, and this sales figure has set Giordano’s lowest value in the past 11 quarters.

At the same time, Barney Road, Jean-Wests and other similar brands also face the plight of closed stores. According to relevant data, in mainland China, the number of stores on Bally Road decreased by 388 to 3,432 from the 3820 in the previous fiscal year. As of the end of last year, the number of shops in the China Jeanswest contracted 253, including closing 194 directly-owned stores. In the first half of this year, there were 88 Igeg shops, 347 seven wolf storefronts, 73 shops at Jiumuwangguan, 53 shops at Kanudi Road, and 46 Hinnor shops.

The reporters found that Giordano, Benny Road, Semir, and other popular casual brands have opened Tmall stores, and this year, Double 11 has launched 50% discounts, buy full amount of deductions and other activities to attract customers. However, this also made offline stores faster to become the fitting room.

expert's point

E-commerce impact under the store will continue to tide

"The previous 100% sales of physical clothing stores came from offline, and now only 70% come from offline." Ma Gang, an apparel industry expert, said that now is not only clothing retail outlets, the entire retail industry is facing the alternation of old and new retailers. After 80 and 90, consumers have become accustomed to shopping online. Clothing brands must recognize this change and should adapt to this change as soon as possible.

Ma Gang believes that: "The current total sales of clothing have not become larger, but the distribution of cake has changed. Therefore, if some old popular clothing brands still stick to the line, do not actively develop online O2O sales, off shop The tide may be particularly concentrated on these brands."

At the same time, Ma Gang also believes that Giordano, Benny Road and other old popular casual wear brands in the first, second and third tier cities intensified competition, profit margins continue to shrink, while the fourth and fifth-tier cities rise in consumption, these brands did not seize the opportunity in time. This has also led to the intensification of the above-mentioned popular leisure apparel brand tide.