Hermes Responded To The Withdrawal Of The Counter: Not To Return To Wuxi In The Foreseeable Future

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On P, Christmas day, Hermes received news from a href= "//www.sjfzxm.com/news/list.aspx ClassID=101112107105", "big Eastern Department Store" /a, and left Wuxi market, which attracted much attention in the industry.

Many consumers wonder why they are leaving. Yesterday, reporters contacted Hermes media chief in China to ask the matter and learned that the brand would not return to Wuxi in the short term, and denied rumors that it might switch to hang lung or eight hundred friends.

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< p > for the reason of leaving Xicheng, the official only said "the main reason is because of strategic planning and network layout adjustment in China", and refused to disclose other things. He also said, "Hermes has chosen the location of each store very carefully and needs a long time in-depth investigation.

The company has not disclosed any further plans for the Wuxi market for the time being.

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< p > industry analysis shows that Hermes can be regarded as the most high-end luxury brand in Wuxi in terms of price. Withdrawal from Wuxi is indeed a blow to Wuxi's high-end business.

A brand's withdrawal from a particular market is nothing more than three main reasons: poor sales, damaging brand image and problems between partners.

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< p > Hermes released the third quarter financial report in November 7th this year, which showed that the third quarter sales grew steadily.

By the end of September 2013, Asia and the Americas, except Japan, maintained growth momentum and sales increased by 17%.

However, a person familiar with the matter did not rule out the fact that Hermes has a relatively low sales performance in tin.

Wuxi itself is a city with two or three lines. The level of shops is not high, and the degree of completeness and speed of goods can not be compared with that of Shanghai, which is very close.

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< p > in addition, as the previous analysis two, < a href= "//www.sjfzxm.com/news/list.aspx ClassID=101112107107" > three line city < /a >, the attractiveness of the brand weakened. Despite the official statement of Hermes that it has been expanding the two or three tier cities as one of the key points of its business development, it announced that Hermes will continue to consolidate retail services in two or three tier cities in 2014, but the industry generally agreed that the development of luxury goods in Wuxi in recent years is a bit overdone.

Before the domestic economic situation is relatively good, luxury brands have opened a large area, after the downturn in the environment, the consumption gap between cities is obviously opened up, big brands will consider the city level more, and make strategic adjustment.

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< p > reporters learned that in 2013 Hermes opened a new exclusive store in Ningbo and Yi Avenue Shopping Center, and opened a new store in Hangzhou on November.

This may mean that, to a certain extent, the attraction of Wuxi's market for big brands is inferior to those of the two cities.

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< p > > finally, < a href= "//www.sjfzxm.com/news/list.aspx ClassID=101112107108" > Hermes < /a > China media leader said that although the Wuxi store has been closed, Wuxi local customers can go to the nearby city's Hermes store for consumption and experience. "We will continue to focus on the Wuxi market."

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