"Hard To Survive &#34": Hongkong Clothing Giant: There Are Only 180 Stores In The Mainland, Which Lost 1 Hundred Million Last Year.

With ZARA, H&M, UNIQLO and other fast fashion giants entering China, Hongkong clothing brand, once the trend and grade, has gradually declined. Giordano achieved sales of HK $4 billion 852 million last year, a decrease of 11.9% over the same period last year. Net profit shrank to 230 million yuan, a drop of 52.1%. "Brand" Baleno has become a low-end goods, nearly 2000 stores in six years.

Nowadays, another Hong Kong clothing brand sells itself. In May 2020, BOSSINI paid the price of HK $50 million to China, the Lining family. This brand, which is also known as "the three largest fashion apparel" with Baleno and Giordano, is now hard to see in the mainstream business circle of a second tier city. It is a real sigh from the rage to nobody.

The rise and prosperity of burllung is closely related to Hongkong's retail industry. Its founder, Luo Dingbang, is known as "knitted king". He and Lim Por-yen of Li Xin group, Fang Zhao Zhou of Hongkong Zhaofeng textile and Tian Yuanhao of Wan Tai garment shoulder to shoulder and become the "four big families" in the textile and garment industry.

In the 50s of last century, Luo family moved to Hongkong. Coinciding with the flourishing period of the cotton mill, Luo Dingbang started the cotton mill with the help of Guangdong's fellow townsman. From cotton thread to clothing, there are four steps to "spinning, weaving, dyeing and sewing". What the mills do is the first step to spin cotton into thread. When business was on the right track, Luo Dingbang aimed at the next step: weaving.

He complies with the tide to make woven fabrics, while using the accumulated technology to develop softer and comfortable knitted fabrics. With the changing trend of the industry, Roding state was ready to take the lead. After more than ten years of development, the scale of Roche knitted fabric has expanded and produced hundreds of millions of garments per year.

Entering the 80s, Giordano and Baleno have already made their mark. Luo Dingbang saw the right time and launched the "bursworth dragon". Brand positioning leisure, youth clothing, the main attacking young people market. And through the rapid expansion of franchise business, it became the largest clothing retail group in Hongkong and Macao at that time. Subsequently, the large scale entry into Southeast Asia and the mainland market is also based on the joining mode, and quickly becomes a familiar brand to consumers. Eight years ago, its revenue reached a historical peak of HK $2 billion 744 million. No one expected this to be the last glory of the dragon.

Over the next few years, the company's performance began to decline. Revenue in 2019 was only HK $1 billion 641 million, down 16.2% compared to the same period last year. Net profit also declined year after year, the first time in previous year there was a loss (HK $29 million), down 692.96% from a year ago. Last year, the deficit increased to HK $139 million.

Up to now, there are 287 direct outlets and 799 franchised stores in 30 countries and regions around the world. But there are only 180 stores in the mainland, and stores in Beijing, Shanghai and other tier cities have all been closed. By the end of July this year, they will also close 51 shops in Taiwan.

The reason for this is that Luo Lefeng, the eldest son of Luo Ding bang, thinks that he is "joining the store and failing to join the store". Under the fierce impact of fast fashion brands such as ZARA and UNIQLO, as well as the electricity supplier, the disadvantages of burshilong brand aging and single marketing methods are revealed. Franchising makes it difficult for the brand to accurately grasp the needs of customers, and its slow updating speed has not kept pace with the market. This inevitably leads to backlog of inventory and thus drag on performance.

epilogue

As the representative of the rise of "national tide" in recent years, Lining, the founder of sports brand Lining, is the chairman and chief executive of extraordinary China. This also means that burshon and Lining will be the same door. We will wait and see what sparks will follow.