How Did The Famous Brand Giordano, Baleno And JEANSWEST Enter The "Miserable" Mode?

As time goes by, these brands are gradually disappearing in the public view, and scattered news is often bad news.

      Perhaps, the rise of foreign fast fashion brands and the rise of the electricity supplier channels have made the garment industry feel a "branding" brand impact, and let the costumes feel that the clothing market has always been the era of new and old alternation. Light people gradually "abandon". The decline of some traditional brands in China and the fleeing of foreign clothing brands are also proving that the industrial scour brought by the new round of consumption upgrading is no matter whether you have been brilliant or not, it only cares about the advantages and disadvantages of your current products and services.

01. Giordano suffering from midlife crisis

Nearly forty of Giordano has witnessed the glorious years of Baleno, JEANSWEST and the United States, and has witnessed the coming of the UNIQLO, H&M and Zara. The cruelty is that Giordano also has to witness its "midlife crisis".

Founded in 1981, Giordano was successfully listed in Hongkong in June 1991, and entered the mainland market in August the following year. It created the first place of China's casual wear retail chain store, grabbing a large market and playing an important role in the apparel industry.

In 2011, Giordano's stores reached a peak of 2671, and sales in 2013 hit a record of HK $5 billion 800 million.

By the end of 2016, the number of Giordano stores was 2397, with an average of more than 50 stores closed each year. Fortunately, this data is not terribly frightening.

In 2019, Giordano still has 2375 stores in the world. This figure has not changed much before. Compared with the closing trend of the mainland market in recent years, Giordano's channel management is relatively stable.

But even so, in the competition of recent years, the once leading leader lost his strong demeanour and was hard to return to the glorious years of his performance.

Despite the fact that the epidemic is over, in fact, since 2017, Giordano has seen signs of declining sales in mainland China and Hong Kong and Macao markets, showing a marked decline.

Comparing Giordano's sales performance in mainland China and Hong Kong and Macao in the past two years, the sales volume in mainland China declined from HK $1 billion 307 million in 2017 to HK $995 million in 2019, and sales in Hong Kong and Macao fell from HK $969 million in 2017 to HK $772 million in 2019.

All in all, in 2019, Giordano handed in an unsatisfactory report card.

It is worth noting that during the most serious period of the epidemic, the sharp decline of retail sales under the line is already expected. On the occasion of the double channel parallel between the major brand overweight lines, Giordano's response is obviously somewhat "calm". According to the report, the first quarter of 2020, Giordano's online performance was HK $59 million, down 18.06% over the same period last year.

Looking for development in the declining trend, it is obvious that Giordano's "midlife crisis" has arrived. The 2020 is to continue to be silent or to find a potential outbreak. We can only wait and see.

In any case, I hope that the adverse effects of Giordano can be dissipated at an early date. If Giordano is also away from us, how much is the middle-aged generation's youth memory about clothing?

02

Baleno hard to save

After saying Giordano, we must talk about Baleno. (review: Please poke: Baleno: everyone thinks it "disappeared", but it has earned 3 billion! Together with the two brands, there will be a fashion storm.

Founded in the 80s of last century, Baleno entered the Chinese mainland market from Hongkong, China. It is popular among young people for its main leisure routes, good quality and fair price.

1996-2006 years, Baleno is the most beautiful ten years, then it is just like the H&M and ZARA that just entered the Chinese market, young people are proud of wearing Baleno.

In the hottest days, the walking street of Shanghai, Beijing, can see a Baleno every 5 minutes. It has opened 4404 stores in more than 270 core cities of the country, and has taken advantage of the channel.

But after 2010, Baleno became more and more dull like Giordano, which led many people to think that it disappeared. Actually, Ngong road only went down to 3, 4, 5, 6... Line city, although the spirit is no longer, but "life" is still there.

From 2011 to 2015, Baleno was hit by a closed shop. In the past 6 years, there were about 3000 outlets and more than 1000 stores in the country.

But in the past two years, Baleno has made a series of adjustments in its brand strategy, and produced a surprising 2018 financial report: annual sales of HK $3 billion 73 million, net profit growth of 6.87%.

From closing 3000 stores to earning HK $3 billion per year, what did Baleno experience during this period?

The most important reason for Baleno and Giordano's "down and coming" is that the biggest reason for the "down and coming" of the brand is that they are not optimistic about the brand image and the despising of the business channel.

However, most of the two brothers are at a loss, and the worst is the same JEANSWEST.

03. Bankruptcy and liquidation of JEANSWEST

In the memory of many Post-80's, in the period when the clothing brand was not very personalized, everyone would blurt out when it comes to jeans: JEANSWEST! In January 15, 2020, JEANSWEST, once the "king of jeans", declared bankruptcy liquidation. From the popularity of the whole country, the annual entry of 5 billion, to 1300 stores and 6000 layoffs, JEANSWEST's fall is a microcosm of those old Hongkong companies on the mainland.

At that time, one hundred jeans of its jeans were almost half a month's wages. When the first store opened in Qingdao, the scene was very hot. JEANSWEST had to invite more than ten security guards to maintain order. On the same day, the store sold 120 thousand yuan of clothes and trousers, far more than Yang Zhao expected 4000 yuan.

In order to make good use of the cheap labor force in mainland China, Yang brothers moved their factory to Huizhou in 1995. In 1996, JEANSWEST's parent company sun rising garment factory went public in Hongkong.

The JEANSWEST on the draught began to sweep across the country. After a fierce operation like a tiger, it has opened 2500 stores nationwide in 2013, with sales of nearly 5 billion. Looking at it, all of China's streets and alleys are its shop tips.

Unfortunately, JEANSWEST did not defend its peak. After 2013, it fell sharply, with sales ranging from 5 billion to 4 billion, 2 billion 800 million, 1 billion 900 million and 1 billion 600 million. In 2017, JEANSWEST lost 45 million 90 thousand for the whole year and closed more than 1300 stores in 4 years. In 2018, it lost more than 2017 of its annual losses in only half a year.

There is no doubt that the electricity supplier has become the core battleground of China's retail industry, bringing a whole new set of retail thinking, while JEANSWEST is still using traditional mode to deal with the changes of the times.

Aiming at the rapid development of the electricity supplier, JEANSWEST first set up an electric business department, and in 2017, JEANSWEST electric trade branch was established. The name of the company sounds like a bull, but in fact it only plays a role of "de Stocking", moving the products that can not be sold on JEANSWEST online to Taobao, Jingdong and many spells.

JEANSWEST's punishment for the electricity supplier has been punished. In 2017, its total channel revenue was 1 billion 600 million, and its losses were tens of millions. Meanwhile, Semir's independent business operators only had more than 5 billion online sales.

Many times, the difference between thinking and thinking brings the difference between heaven and hell.

In JEANSWEST's earnings report, it dropped its own account to the head of the electricity supplier: the electricity supplier cooperated with the mainland's low-cost logistics service, which made a huge impact on the store.

So, seeing that the draught is changing, why does JEANSWEST not respond effectively to changes?

Because it does not have the courage to admit it, only by using electricity providers and big data, completely change the design concept and operation mode, in order to open up the market. But in the face of risk, its parent company has withdrawn, and has finally chosen to sell at a low price instead of doing its best.

Of course, Giordano, Baleno and JEANSWEST are also changing and upgrading. Compared with other brands, they are lagging behind in time, so they miss the best time to turn over. The intensity of change is not enough. Referring to the brand of the same period, such as Lining, it was once a representative of the old and new sports brand. In recent years, however, by subversive design and high-profile dissemination, he entered the high light moment again, stepped onto the international stage, became the representative of the "chao chao" brand, and won the favor of the young consumers again.

The change of times, the "changeable" of consumers, and the brand's evolution into "one hundred year brand", there are too many exits. As the pronoun of youth fashion, Giordano, Baleno and JEANSWEST are gradually silent, which really makes people sob. We also hope that they will seize another critical opportunity to bring us a pleasant surprise again.