Crash Counters: Squeeze Market Space For Outlets

Before Chanel's massive price cut in China, luxury brands had put their future strategy on the outlets.

Above.

In January this year, the LVMH group announced the injection of domestic commercial real estate sand boat, intended to enter the field of orlies, and open up a new situation in the mainland channel.

And now the counters are cutting prices, no doubt.

The function has a "crash".

The wealth Quality Institute's analysis shows that

The price adjustment is bound to squeeze the profit margins of the outlets to earn price difference.

Oteri J is already a sunset channel rather than a sunrise channel in luxury goods industry. Luxury brands can not be sold at low prices for a long time in Oteri J.

"The channel mode of orter will gradually fade out of the luxury market," Zhou Ting said.

Another industry insider also said that luxury is an industry dominated by customization and experience activities, not price.

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In 1994, Parkson commercial group entered China's retail market for the first time in 1994, and opened its first store in Beijing, which is located at Fuxing inner street 101, which is located in the middle and high-end consumer group.

Now, 21 years later, the number of stores in Beijing has only 3. One of the East Fourth Ring Parkson shops is no longer open to customers.

Although the Parkson East Fourth Ring store has stopped operation, it seems that the official website of Parkson has not been updated. The reporter chose the city "Beijing", and the shops appeared three, namely, Parkson Renaissance stores, Baisheng Mei Luo city store and Parksun Sun Palace store.

The Baisheng Mei Luo city store is located at the East Fourth Ring store of No. 189 shopping center in East Fourth Ring Road, Chaoyang District.

On the afternoon of March 14th, the Securities Daily reporters visited the shop again. Through the glass outside the store, it was observed that all the merchants in the shop had been emptied, and the shop was in a mess. The notice was posted on the door of the East Fourth Ring store in Parkson. "My shop will be rebuilt in July 1, 2014, and I apologize for the inconvenience caused during the pformation."

After the announcement, there was a landline and a mobile phone number, but when the reporter called the above two phone numbers yesterday, the landline could not get through, and the cell phone kept prompting that it had been turned off.

Reporters at the scene saw that the East Fourth Ring shop entrance was surrounded by a circle of construction projects, except that the door leading to the underground parking lot had not been closed.

Reporters call Baisheng group learned that the East Fourth store has actually closed shop.

Du Yanhong, a retail researcher at CIC, told reporters in the Securities Daily that Parkson's East Fourth Ring customs store showed problems in the operation of the company and faced great difficulties.

This is related to the declining trend of the domestic department stores. Besides, the business circle of the East Fourth Ring Road is not yet mature, and the flow rate of random people is not large.

At the same time, Parkson is reluctant to innovate. It still sticks to its traditional department store mode and keeps its profits declining.

It is worth noting that at the same time, when Parkson shops, Parkson will open a new store in Beijing Longhu Tian Jie, the Parkson stakeholders said that the Longhu shop specific progress, he also did not know.

However, Parkson also said in its annual report that in order to remain competitive, the group adopted a prudent strategy for opening a store and prudently aimed at second tier cities with high growth potential.

In 2014, five new stores were opened in Zhongshan, Zhengzhou, Chongqing, Nanchang and Mianyang.

"Longhu Tian Jie" is a shopping center built on the subway station, with a safe flow of people and a Longhu team with rich experience in commercial real estate. The external environment is relatively ideal.

But the rent will have some pressure on Parkson in the future.

Du Yanhong added, the current department store industry is obviously affected by the electricity supplier, and the traditional department store shopping place is also changing to the shopping center. Parkson only has to realize the strategic pformation first and find a new way to expand.