As report goes,

In recent years, the local retail brand has been seriously shrinking. In addition to Giordano, many brands such as Si Jie, I.T and burshlung international have been reducing their stores in different degrees in recent years, and their attitude towards expansion is also prudent.

Some analysts pointed out that in addition to the high rent in Hongkong and the weakening of the free trade effect, China's domestic demand growth was not as expected, which made local brands tighten and reduce mainland stores.

I.T stores

Shen Zhenying, chief executive officer of securities exchange, said the increase in rent is a "fatal injury" to the middle and low retail brands.

He said that the rent has doubled in recent 3 years, and that the profits of the middle and low grade brands are relatively low.

The "shrinking shop" in the mainland is more serious.

An American fund manager said that Hongkong's local clothing brands overestimated the potential of the mainland market several years ago, and opened stores in the mainland on a large scale, but the growth of domestic demand was not as expected. With the popularity of online shopping, competition became more intense. Therefore, the situation of local brand shrinking in the mainland was even worse than that in Hongkong.

According to analyst Elaine Lai, with the gradual maturity of foreign international brands in the Chinese market, the low discount activities have been aggressive, partly to thin the local brand market and profits.

She pointed out that a few years ago, foreign brands were not mature in the Chinese market. Even though the price of local brands was higher, many consumers sought after it, so that they could get higher profits.

But now that things are going on, under the pressure of foreign brands, local brands continue to adjust their performance to price ratio.

She also said that many local brand retailers were initially located on both sides of the road, and the large shopping arcade that had springing up in recent years snatched the street crowd to a certain extent, but the street rent remained at a high level.

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