The largest flagship store in Beijing is closed

Here the Xiaobian of the world clothing, shoes, and hats nets gives us a brief introduction of the closure of Beijing's largest flagship store. The analysis of the company's performance is highly likely to reverse.

On the sidelines of the first-line market, Smith Barnum began to release value in the second, fourth and fourth tier cities. Yesterday, Beijing (Beijing specialty store) Business Daily reporter visited and saw the flagship store in Wangfujing Pedestrian Street is closed. At present, Smith Bark only has one Xidan flagship store in Beijing.

Four years ago, Smith Barney opened its largest flagship store in Beijing on Wangfujing Pedestrian Street. According to a person familiar with the matter, Smith Barney’s flagship store in Wangfujing was among the most rented in its direct-operated stores. The cost of manpower, rent and other expenses also spent a lot, but based on Wangfujing, this image store did not convert Wangfujing's passenger flow into operating sales. In the four-storey flagship store, the passengers were gathered on one floor and it was difficult to drain upwards. Wangfujing’s rising rents forced the Bank of China across the board. For Smith Barney, limited passenger flow and high rents have made the store's survival more difficult.

Since 2012, it has shut down the Huaihai Road flagship store in Shanghai and the two stores in Qianmen Street in Beijing. The layout of the first line market of Smith Barney is getting smaller and smaller. The relevant person in charge of Smith Barney told the Beijing Daily News reporter yesterday that during the business process, the company will close stores in accordance with the regional consumption conditions and business conditions, which is a normal adjustment range. At present, Smith Bark has only one Xidan flagship store in Beijing. The said person in charge said that the Xidan flagship store will continue to be retained, and another will find a suitable shop in Beijing to develop the o2o experience shop.

"Mambin will continue to deepen the second and third tier market this year and optimize the layout of terminal stores, but this does not mean that the company will abandon the first-line market." Smith Barney related responsible person said. According to Cui Hongbo, CEO of Shanghai Zhengjian Brand Management Consulting Co., Ltd., in the first-tier cities, fast fashion and other "foreign brands" almost monopolized the entire market. Not only is Smith Barney, but most of the domestic apparel companies are also faced with a lack of brand power. These image stores have not transformed profits and profits, but have occupied the company's huge operating expenses. Cui Hongbo believes that the second and third tier markets are more conducive to brand development.

A senior industry personage believes that in recent years, Smithsonian’s strategic decisions have fluctuate, and from a multi-brand, fast-learning fashion to an o2o strategic transition, Smith Barney is a very “toss” company, but the play is not clear enough and insists. However, judging from the focus on the second and third tier markets, Smith Barney has begun to pursue benefits. "In fact, the first and second tier cities are not enough to reflect the competitiveness of the Smith Barney brand. The third and fourth tier cities are markets that can really help Smith Barney to make money."

Smithland's first-quarter financial report showed that operating income and net profit fell by 17.2% and 15.3%, respectively. Although the improvement of performance was not obvious, the related person in charge of Smithland stated that since the promotion of the o2o strategy, the number of members and the performance of the experience store have been continuously improving. It only takes time to gradually improve.

Pioneers and martyrs are sometimes only one step away. If Smith Barney can take the road o2o will lead the entire apparel industry. However, the above person suggested that while exploring the o2o concept store, Smith Barne should also devote more energy to the product itself, so that the clothing has stronger competitiveness from design and fabrics.

According to the annual report disclosed by Smith Barney recently, the company has nearly 5,000 direct operations and franchise stores across the country, which is a decrease of more than 200 compared to 5,220 in 2012. Both direct sales and franchise business revenues fell, with a decline of more than 16%. However, the gross profit rate of direct operating business increased by 4 percentage points over the previous year, 13 percentage points higher than that of franchise business. With the increase in the proportion of direct operations, sales have accounted for nearly 50%. The analysis from the Business Research Institute of Beijing University shows that, in the short term, direct operation will certainly make the Smithsonian capital chain tight and become a performance “burden”, but when the industry warming period comes, the direct operation may become the most favorable for the US state to overturn. arms. The annual performance of Smith Barney 2013 (2013 store) has bottomed out. This year's performance is expected to stabilize and pick up from quarter to quarter, and the probability of reversal of performance is high.