Giordano'S Pricing Has Fallen Into A Cheap Brand.

Giordano's 2014 performance report showed that its sales and net profits declined to varying degrees, which forced Giordano to take measures to deal with it, that is, cheap brands. Beau Monde As the focus of development in 2015. Giordano has revealed that it has embarked on a new cheap brand Beau Monde to replace its stores, and opened 13 stores in Southern China, Shanghai and Taiwan in 2014.

Giordano last year Sales volume It decreased by HK $5 billion 848 million from HK $5% in 2013 to HK $5 billion 545 million in 2014. The profit attributable to shareholders was HK $408 million, a decrease of 38%, an increase over the 20% year-on-year decline in 2013. In the same period, the momentum of closing stores was quite fierce. In 2014, the number of Giordano shops was reduced by 190, while in 2013, the number of Giordano shops was only 6.

At the beginning of last year, Giordano executives introduced the company's 2014 plan, saying that 200-250 stores opened in the mainland, including the launch of a cheap brand Beau Monde, with a price of only three or four yuan of Giordano, or an average of 29-99 yuan.

In the industry's view, the apparel industry is in a downturn. It is a wise move for enterprises to carry out brand restructuring. This is actually a forced move under the pressure of international brand shock and serious homogenization competition.

It is worth noting that the new strategy of increasing the price of cheap brands is now in sharp contrast to what Giordano said ten years ago that it would not be entangled in the low-end market competition.

It is understood that in 1980, Giordano, founded in Hongkong in the early 90s, entered the mainland market vigorously and opened franchise stores in all provinces of the country. In recent years, the mainland has also become the main market of Giordano. In 2013, mainland sales accounted for 30% of Giordano's total sales, accounting for the largest proportion, while in 2014 the proportion dropped to 28%.

In 2006, the garment industry in the mainland turned into channel As a king, enterprises are leveraging the economic growth and satisfying self expansion in the strong market demand. Giordano is no exception. Seeking high profits and taking the high-end line has become the goal of many enterprises. At that time, it was reported that Giordano officials said, "we will not be entangled in low-end market competition".

However, in the past ten years, fast fashion brands such as ZARA and H&M grew wild in the mainland market, and the domestic garment enterprises, which became increasingly prominent in the homogenization of competition, were also paying high prices of inventory, sharp decline in performance and closing shop tides when the overall economy slowed down, the high-end consumption was limited and the impact of e-commerce was on the rise. Giordano was also among them.

Giordano's 2014 results announcement shows that most of its main brands are not performing well. "Giordano brand, 76% of sales from men's wear, men's brand sales decreased by 3%. Giordano Women accounted for 24% of Giordano's store sales, and sales fell 11%. Giordano Ladies operating profit decreased from HK $51 million to HK $40 million. BSX operating profit decreased from HK $24 million to HK $14 million.

According to the insiders, under the current market conditions, it is helpless for Giordano to find a way out by pushing the low end. In view of the company's future brand strategy and other issues, the Beijing Commercial Daily reporter contacted Giordano with mail, but did not receive a response before the press release.