Cheap Foreign Brands Are Seeking To Break Loose Hongkong Market.

Extravagant extravagance

September, Sweden parity

The clothing brands that follow the mass line are not new in Hongkong. The two brands of Giordano and Giordano were founded in the 80s of last century and are now listed companies.

The two brands are basically basic routes. There are dozens of stores in Hongkong and have expanded to Taiwan, Southeast Asia and Mainland China.

However, the influx of foreign fast fashion brands has put pressure on Hongkong's local brands. They have to reexamine their market, pricing and expansion strategies.

EddieLau, director of regional consumer research at Citibank (Citibank), says these are two points for local brands. First, competition for retail property, especially in prime locations, will be more intense.

Second, they have to re-examine their business planning and brand capital.

Giordano's market value is HK $7 billion 250 million (US $934 million), which is less than 1/4 of Gap's 10% and AmericanEagle 's's.

In the scramble for stores, large foreign brands can open higher chips than local competitors and eventually raise the rental market.

In June, Forever21 announced that it would open a flagship store in Tongluowan, which was originally rented to Giordano by the entire five storeyed floor of the flagship store, which is located in Hongkong.

The rent paid by Giordano was HK $5 million 500 thousand per month, and the rent of Forever21 doubled to HK $11 million.

According to data from ColliersInternational, in the three quarter of 2010, the average rent of retail property in Hongkong's traditional four shopping districts, Tsim Sha Tsui, Mong Kok, central and Tongluowan, increased by 2.7% over the two quarter.

High power international forecast that the next 12 months will have an increase of 10%.

Yu Weilin, director and director of Giordano affairs and foreign affairs, said, "what can we do? We just think that the rent level of WilliamYue is not explained by economics."

He said Giordano is now looking for shops in a few relatively remote streets in Tongluowan.

Giordano and burglung are gradually shifting their focus from Hongkong to the mainland. With the prosperity of the retail industry this year, the profits of both companies have improved, and their profits in the mainland are far higher than in Hongkong.

In the past three years, Giordano has closed 30 stores in Hongkong and opened 341 new stores in the mainland.

In the first half of 2010, Giordano's sales in the mainland increased by 15.7% over the same period last year, representing 37% of the total sales so far this year.

Sales in Hongkong stood at only 18% of total sales.

Its competitor, burshlung, has opened 182 new stores in the mainland in the past three years.

Today, some local brands in Hongkong have also launched a more fashionable product mix.

Yu Weilin said he did not think that brands like H&M and Forever21 were the direct competitors of Giordano (he said we were not as fashionable as they were), but he said that Giordano was pushing the fashionable BSX brand. Its target audience was mainly young women and the price was about 20% higher than that of Giordano's mainline products.

G2000 is the main brand of the main office clothing. Its 2010 autumn dress series presents a more fashionable look, tailored and more fashionable, and styles and accessories are more fashionable.

Lau said that other brands were marginalized and forced to price competition as a means of competition, resulting in their target segments falling from middle-income groups to low-income groups.

He said that the fashion industry has always had high risks.

Local clothing brands must learn how to deal with such risks.