Metersbonwe said that almost the same area of the store, "Yanan road in Hangzhou is profitable, but here is a total loss."

"Do retail business, no one wants to close shop."

Recently, Metersbonwe clothing is located at the Me&City flagship store of Huaihailu Road commercial circle in Shanghai gold trading area.

The United States, which once called the "ZARA" and "H&M", once expanded its brand quickly.

Forced by high rent in Shanghai golden section

"The reason is very simple. The rent is too high and too high."

Metersbonwe brand director Zhou long told reporters yesterday that he believes that retail stores in the retail industry is normal.

In 2010, the more than 800 square meter Me&City opened in Huaihai Middle Road, which is the fashion frontier of Shanghai.

They hope to quickly enhance brand awareness through this action.

However, just two years after the opening of the door, will the door be closed? Will it have a negative impact on the brand? "Although it can enhance the brand image, it has been losing money for two years, and we feel that it is not necessary to sustain it."

Zhou Long explained that Huaihailu Road's business format has changed.

"Five or six years ago and completely different now, the brand that used to suit the masses is the majority.

nowadays

Future may switch to shopping mall counters mode

It is a large number of thousands of square meters.

Big shop mode can drive sales on the one hand, but the other side needs to bear high rent.

For retail enterprises, rental costs generally account for about 17%. In recent three years, rental costs have risen rapidly, and their operating costs are also increasing.

In the view of Zhou long, the competition between national brands and many international brand stores often has little advantage. Increasing the rent is the only bargaining chip.

"In fact, we also find that in some parts of Shanghai, it seems a little more profitable to invest heavily in big stores."

Zhou Long believes that the big shop mode itself does not exist good or bad, only suitable.

"The store will be reopened in the future. As for the location, it will definitely not consider Huaihailu Road. It should choose the mode of shopping mall counters."

Zhou Long analysis, in Shanghai Shopping Mall has been very developed, counters are easier to light up, and more convenient location.

In Hangzhou, it will still choose to open stores and take big store mode.

National brands need more innovation

Me&city has been developing rapidly and its effect is good, but in the eyes of some brand marketing experts, there are still drawbacks.

"Positioning is not clear, which is a symptom of many national brands in recent years, including Lining.

Although Me&city has a higher positioning than Smith Barney, it has been emphasized as a subsidiary brand of Smith Barney.

There is no sense of independent brand. "

Brand marketing expert Yu Lei told reporters that the channel and brand must match, which means that the location of the shop is not just to follow the golden section, but more importantly, whether the crowd matches or not. The reason for closing the shop should be attributed to the lack of prudence in the site selection.

"On the other hand, innovation is the basis for the survival of the fashion industry."

Yu Lei said that most of the national brands rely on copying existing models and styles, but it is easy to lose their own advantages.

Differentiated competition is easier to get out of its own way.