A Case Study Of Casual Wear And Fashion Brands

With the upgrading of urban commercial facilities, the street shops in Xidan gradually declined and disappeared from the early stage of their popularity. They eventually withdrew from the main street of Xidan North Street and replaced by a large number of new and upgraded retail property projects such as Zhongyou department store, Capital Times Square (MEEI department store) and Jun Tai Department store.

In the process of self-improvement in the first tier cities, the traditional brands are faced with the choice of leaving the top business circle or moving to commercial projects.

The expansion of audience groups and the pursuit of the image of "mass brand" decide that traditional brands only choose the latter.

For the traditional brands that street stores are familiar with, the shopping centres of the top tier cities in the first tier cities are particularly unfamiliar.

As mentioned above, Ping efficiency is the core of traditional brand store operation.

The pformation from "street to building" brings about the reduction of the total number of people and the uncertainty of the flow of people. It is difficult to guarantee the efficiency of the flat, and the traditional brand can hardly bear the rent of the gold position in the shopping center. This is obviously contrary to the management idea of "location decides everything".

Once in the era of street shops, Baleno, Gioradano, etc., after entering the two floors of the underground city of Xidan, which are located close to the brand target, the flat effect quickly dropped to the 1/4 of the street store era.

At the same time, the rental level dropped to about 1/5 of the street store because of poor location efficiency.

Under the low rent level, enlarging the management area and highlighting the brand characteristics will be a better choice for the first tier cities and the second tier cities.

From the fiery gold location Street store to the warm and dry shopping center edge location store, and from the important profit point to the profit and loss balance brand display window, this is the traditional pformation of the traditional casual wear brand in the first tier city's top business district location and brand strategy.

Let's look at another brand led by ZARA.

Within 2 years of entering China, ZARA has quickly become one of the backbone of casual wear. Its concept of "fast fashion clothing" is likely to become the trend of the future garment market.

Due to its high positioning, the selection strategy of "fewer but better" and "golden location" is more suitable for ZARA, and the top shopping centers and popular shopping centers naturally become the first choice for ZARA.

Unlike traditional casual clothing brands, ZARA has a relatively strong position in the game with shopping centers because of its strong ability to absorb people, enhance image and enhance business turnover.

The shopping center is willing to provide gold location for the project, and adopts the settlement method which is higher than the bottom rent and the business water point. (as the total amount of the water points is usually much higher than the bottom rent amount, the actual settlement uses the method of deduction).

Rents are the main cost of traditional casual wear brand stores, so Baleno and other brand stores need to be higher than the level of rent, while ZARA and other fast fashion brands are mainly due to the main stores.

For the purpose of deduction, there is no rent pressure. ZARA can decide the store area according to its own needs, and turnover is particularly important.

Therefore, in order to protect the high turnover, a good business atmosphere, steady flow of people and brand adaptability are more important when choosing a fast fashion brand.

Compared with Baleno, ZARA is everywhere.

Only the world trade center, SOLANA and Xidan Joy City 3 stores, and have occupied the gold position of the project.

Due to their location slightly higher than the mainstream population in Xidan business district, with the reasonable consumption gap, ZARA Yuecheng store has created an annual turnover of nearly 3 times of the world level store with less than 800 square meters of area. If we use Ping efficiency calculation, ZARA Joy City store will reach 7 times of the world level store.

Because

With Baleno in the Joy City, we can make an intuitive comparison.

Baleno adopts the fixed rent method, while ZARA actually adopts the method of point settlement, the actual rent = annual turnover * point rate / area.

In other words, the rents of ZARA and other fast fashion brands are "made by themselves".

In the joy city project, the real "rent" that ZARA occupies the gold position is only 2 times that of the 2 level of Baleno, but it has created Baleno8 times of the flat effect, and the turnover is even 21 times.

On the whole, in the increasingly fierce competition of new brands and casual clothing market, "Baleno" has always maintained its own tone of development and occupies an inherent market share. However, with the strong brand appeal, the updated consumption concept, and the location advantages of "rent self determination" and "golden location", the fast fashion brand has been gradually approaching.

According to the current momentum, we have every reason to believe that the leisure clothing market of the top tier shopping centers in the first tier cities will become the world of ZARA and H&M in the future.