Five Main Directions For Developing Multi Brand Buyer Shops In China

The buyer's shop has become an indicator of urban fashion consumption. With the maturity of consumers, the demand for specificity and uniqueness of products has become larger, and the distinctive Chinese local buyers shop has become a key element in balancing the consumption of luxury goods. So what is the real life of the buyer shop in China? The following is an article from the time authorized by Yang Jiong.

In 2004, Guo Ben, who had just returned from Switzerland, hesitated for a long time between Hang Lung Plaza and Xintiandi. Finally, he chose to open Glossy in Xintiandi because of the lower rent relationship. At that time, he did not think that 11 years later, multi brand buyer shops would become a hot spot in China's fashion retailing industry, and it would not be realized that Glossy would become the pioneer of Chinese multi brand buyer shops.

Buyer-Oriented Multibrand Boutique started in the Second World War, and began to flourish in Europe, America and Japan in the late 80s. At present, there are more than 32 thousand stores of multi brand buyers in the world, with a total turnover of nearly US $200 billion, which is the most important part of the global fashion wholesale link. The definition standard of multi brand buyer store is that there is a unified aesthetic concept and value kernel in shop decoration display, visual image and brand / goods selection, and to attract specific customer community. The official exhibition hall (Showroom) and Exhibition (Fair) are the most important order channels of the shop, and the value, aesthetic preference and experience of the buyer (individual or team) are the important criteria for the selection of store brand, product combination and single product; the goods are mainly bought out (and some goods are not excluded by consignment form). Retail stores that meet the above criteria, no matter what the scale can be called Barneys New York, lconford, Dover Street Market, or a 20 square meter shop on the street of Kobe and Istanbul, also can be classified as a multi brand buyer shop, regardless of the number of hundreds of chain stores Beams, Via Bus Stop, or Paris's Colette without any semicolon.

Back to China 10 years ago, it was clear that the prevailing market environment and consumer habits did not provide beneficial soil for the development of multi brand buyer shops. Consumers are in the initial stage of chasing famous brands. They do not leave room for luxury brands or fashion brands outside their commercial sense, either in terms of cognition or aesthetics. From 2004 to 2009, it is still the golden year of China's "foreign trade store fashion". The local multi brand buyer shop can only take the European stores with Chinese characteristics apart from Shanghai's Glossy, BY and Beijing's Waterstone.

From 2009 to 2011, it can be regarded as the shell breaking period of Chinese local buyer shops. BNC, pillar, Triple-Major, Alter and TIPS are basically born at this stage, and Glossy and BY have entered the growth stage at this stage. The main reason for this is that the market environment is changing: some consumers are tired of luxury products and try to design more aesthetical differences. Chinese designer brands gradually mature and get more attention; the increasingly competitive commercial real estate projects start looking for differentiated retail content. At this stage, there are two basic characteristics of the Chinese local buyer shop. One is the two Chinese fashion frontier cities in Shanghai and Beijing, the two is the Chinese designer as a whole or part of the selling point.

Around 2012, with the acceleration of the change of fashion market environment, Chinese local buyer shops entered the initial stage of growth. The growing market shows three good signs:

First, with the involvement of all kinds of players, the number of shops has increased rapidly. The fame of BNC and Dong Liang has led a large number of buyer shops to promote the Chinese designer brand. Guangzhou's one gate, Nanjing's Round Round, Chengdu's integration, Changsha's Galatea Wan and Chongqing's greenhouse are among the best. The opening of HCH in Wuhan Tiandi in 2012 is a landmark event of traditional agents transforming multi brand buyer shops, and its unusually successful performance has led to a large number of agents unable to continue to enter or prepare to enter the industry in traditional mode. On the clothing brand side, Arrtco, opened in Beijing by Han Bo, opened its first voice. The 01 MEN of Guangzhou's card road and the high-profile D2C entry of Zhejiang's autumn Shui people background attracted the increasing testing of Metersbonwe, Mass Phil, Mark Ed Faye and other brands. In the field of Chinese designers, there was Wang Chuqiao's One By One before, and then Archipel of Shangguan zhe was about to open in Xiamen. By conservative estimates, by the end of 2014, the number of local buyers in China was close to 900, with an annual turnover of more than 6 billion yuan.

Two, based on the increasingly diversified aesthetic appreciation of Chinese consumers, many shops in China's local buyers have focused on smaller styles. The trend streets include A-Maze, HSpace, Luna and upcoming MMC. Pioneer areas include eth0s, J Gallery, Phantom, American retro Radiance, life aesthetics, lost property, TheBackRoom, TASTE, TASTE and so on.

Three, the area of shops is bigger and bigger. Like Guangzhou, Shangshang single store area is close to 2000 square meters, and Wuhan HCH single store area is more than 1300 square meters. Shangguan Zhe is about to open Archipel phase 800. Similarly, the turnover of single stores has increased year by year, for example, the annual turnover of HCH single store in Wuhan is over 40 million, and the highest monthly turnover in Shanghai Glossy 2014 is nearly 3 million.

At the consumer level, with the change of fashion cognition and attitudes and the improvement of their aesthetic standards, some of China's high-income consumer groups have begun to change the consumption concept of LOGO in the past. Fashion consumption has gradually shifted from luxury products to more designer and smaller brand designers. Compared with the previous generation of consumers, the 80's and 90's younger consumers are more open, more aesthetic, and more rational and diverse. Thus, globally influential designer brands, cost-effective luxury brands, closer to the trend of lifestyle of young people, closer to the Chinese market values and tastes of local designer brands will gradually divide into the original luxury luxury monopoly market.

At the brand level, most designer brands, light luxury brands and trend brands are hard to adopt self retailing mode when expanding such a huge and complex market in China due to the objective constraints of resources and experience. So the wholesale mode of buyout shops naturally becomes the best choice.

At the channel level, the access mode of the traditional brand agent - department store /Shopping Mall has met with great challenges. The huge impact of the electricity supplier, the changes in the habits of young consumers, the intensification of commercial real estate homogenization, the decline in the expansion of luxury goods and commercial brands, all of which created the differentiated retail content that /Shopping Mall is eager to innovate. The newly emerging multi brand buying shop of the main differentiation experience brand has become the object of their interest. Therefore, the support policies for multi brand buyer shops such as good location, decoration subsidies, low discount points have been introduced, and a certain level has also promoted the development of multi brand buyer shop industry.

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At the traditional agent level, the business mode of making a commercial brand before opening a store in a department store has become more and more difficult to survive. It is inevitable to consider the changing trend of business mode. Outside the temptation of the /Shopping Mall support policy of department stores, there are motives for selecting brands with potential commercial market through multi brand stores, and opening multi brand buyers shop is an important option on their transformation.

Changes in consumer psychology and habits, different brand operation modes, demand for differentiated retail contents in commercial real estate, and changes in traditional agency concepts and patterns have contributed to the rise of local multi brand buyer shops. More importantly, under the premise of stable social environment, China will produce a large number of middle class in the next ten years. As a whole, after 90, they do not need to spend almost all their savings in real estate as their predecessors, so their spending power will be more reflected in the areas of improving their taste and personal value, thus "lifestyle consumption" and "aesthetic economy" will become important consumption engines. If there is demand, there will be supply. Without accident, the next ten years will be the multi brand buyer's shop and its upgraded version - the era of life aesthetics in China's real prosperity. It is optimistic that by 2010, China's multi brand buyer shops (and its possible derivatives) will have more than 5000 stores and annual turnover exceeding 60 billion yuan.

In other words, at the strategic level, we will invest in the mainland in the next ten years. Multi brand The buyer shop will be a good business, but the tactical level still faces many severe challenges to the existing or potential buyer shops. The failure of a certain decision making process will result in the collapse of a shop or a group of shops, which will surely be a continuous sight on this highway. Specifically, it is necessary to select and understand the specific customer groups, the identification and application of aesthetic style, find a cost-effective property, reasonably combine and adjust the brand structure and product structure, the establishment of the buyer team and data support system, the mining and management of brand resources, the management of the upper wave band, the customer database and VIP management, the shopping guide and display team training, the establishment and dissemination of the unique image of the store, how to deal with inventory, how to deal with the inventory and how to deal with the challenges of electricity suppliers and purchasing agents, all of which are more or less the problems that various types of multi brand buyer shops need to pay attention to and solve.

In terms of business and investment, the local multi brand buyer shop is actually a transformational upgrading of the traditional entity retail mode, which is pregnant with lots of opportunities, but also full of risks. Because of the multifarious background of participants in the industry, fashion workers, affluent fashion lovers, traditional agents, brands, designers, clothing upstream industries, traditional department stores and commercial real estate, there are many types and styles of multi brand buyer shops, so it is very difficult to have a unified answer to solve their survival and development. Broadly speaking, the development path of multi brand buyer shops will follow the following directions:

Boutique general merchandise: the benchmark sample of this category is Dover Street Market of Lane Crawford and Wakubo Rei. The advantage of these models is that they have obvious advantages in cooperation with brands and real estate, bargaining chips, part of the retail space can be subleased to obtain stable and risk-free returns, and the low promotion operation cost brought by scale advantage. The challenges will include the large amount of capital input in the early stage, the need to set up a large buyer and commodity management team, and how to deal with it effectively.-->