Once The King Said, Now Stop Shop, Stop, Baleno How To Save Themselves?

In 2006, in the crazy stone, Huang Bo made a roar of laughter with a Chongqing accent, "Baleno," and became the classic quotations of that year. At that time, Baleno was one of the leading brands of high street brands in China. During the development of Baleno's gold, F4, Andy Lau, and Faye Wong, one of the hottest stars, endorsed it. But as soon as the international fast fashion brands enter the Chinese market rapidly, Baleno, Metersbonwe, Giordano When a number of high street brands are no longer seen, the main consumer groups are quickly carved up. Nowadays, ZARA, H&M Performance has declined. Topshop, Forever 21 What is the life of Baleno at the time when the international fast fashion collectively falls?

Recently, according to the latest earnings report of Baleno's parent company, Germany Yongjia Group Co., Ltd. (hereinafter referred to as "Germany Yongjia"), sales and sales of retail and distribution business in the past year were HK $3 billion 448 million, down 13.6% from the same period last year, accounting for 42% of the total turnover of the group. Although the group's most valuable main brand, Baleno's sales account for almost 90%. However, Baleno in the "fast fashion" and the emerging online brand "crack" is not good. Apart from the continuous decline in brand sales for many years, the shop closing trend is still continuing.

How to reshape brand value has become the key to Baleno's redevelopment.

Profits rise or fall

In June 19th, the annual report released by Germany Yongjia showed that In the 2018~2019 fiscal year ended March 31, 2018, the main business income of the company was HK $8 billion 210 million, a decrease of 3.76% compared to the same period last year, and the main business income in the 2017~2018 financial year was HK $3 billion 414 million. Although business revenue is still declining, but Compared with the first two quarters , The profits of Germany Yongjia group gained positive growth. 。 In the preceding 2016~2017 and 2017~2018 fiscal year, the group's profits fell by 54.4% and 36.5% respectively.

During the reporting period, Baleno's retail and distribution business sales fell 13.6% in the fiscal quarter, from HK $3 billion 889 million to HK $3 billion 448 million, accounting for 42% of the group's total revenue. 。 Among them, the sales of Baleno, the main brand of the group, amounted to HK $3 billion 73 million, accounting for nearly 90%, while the sales of the other two brands S&K and I.P.Zone were HK $136 million and HK $12 million respectively.

In fact, since the beginning of fiscal year 2016, the performance of de wing Jia's retail and distribution business has been on the decline all over the mainland market. During the 2 years of 2016~2017, Baleno's operating income was HK $3 billion 144 million and HK $3 billion 274 million respectively. 。

Dewing said that during the reporting period, the group experienced many unfavorable operations, including rising prices of raw materials and dyestuffs, increased wages and energy costs, the impact of Sino US trade frictions, and some orders being reduced or delayed. In addition, retail and distribution businesses were also affected by the warm winter climate as domestic and domestic consumption demand continued to decline.

Financial reports show that In the fiscal year 2018~2019, Baleno's main business revenue was HK $3 billion 73 million, down 6.1% compared to the same period last year. The reason for the decline in revenue, Tokunaga Ka said, group retail business is now mainly focused on Baleno brand, and other brands are being closed or weakened.

Baleno was born in 1981, the brand originated from Italy, and entered the Hongkong market in 1980s. 。 In 1996, Baleno was acquired by Hongkong de Yongjia Group Co., Ltd., and founded the Guang Zhou Friendship Baleno Company Limited and entered the mainland market.

As a typical representative of the mass leisure brand in China, Baleno's main male, female and neutral casual wear is to provide basic daily leisure and knitted T-shirts and other products for the public. Its brand is based on the concept of value for money and the public as the development target. The target consumption age group is located at the age of 18 years old, ~40 years old. The group includes S&K (living geometry), bambini (pure legend), I.P.Zone (Interactive Zone) And so on, more than 10 sub cards.

At that time, the scenery of Baleno was infinite. As Guo Jingming said, wearing a Baleno dress is the dream of every town youth. In the movie Crazy Rock, a brand, Baleno! The classic lines also confirmed the influence of Baleno brand. Zhou Runfa, Andy Lau, Maggie Cheung and Huang Xiaoming were all the spokesmen of Baleno. At this time, Baleno is not having a good time. Looking at the performance of Baleno in recent years, Since 2015, the growth of brand sales has almost stagnated. During the reporting period, Baleno realized its main revenue of HK $3 billion 73 million during the year, down 6.1% compared to the same period last year. In the 3 years from ~2017 in 2015, the main revenue of the brand was HK $3 billion 260 million, HK $3 billion 144 million and HK $3 billion 274 million.

Behind the decline in performance, Baleno is unable to stop the "shop tide". Data show that Baleno is in In 2012, the number of stores reached the peak of history, with 4404 stores in the mainland of China. Or even beat it off. Giordano And just entering the Chinese market. Uniqlo 。 But it didn't last long. Only two years later, Baleno encountered a "closed shop tide". Since 2011, due to overstock, Baleno has closed about 3000 stores, and there are only more than 1000 stores in the country. 。

At present, the number of stores in Baleno is still decreasing. Especially in the first tier cities, Baleno can only open stores in some stores or department stores where traffic is not good, and most of them are on sale sites with continuous discount. According to the latest financial year data De Yongjia has 2183 stores in mainland China, and 316 closed during the reporting period.

At that time, Baleno was aiming at the largest number of shops and the highest sales profit, so as to become Asia's largest apparel retailer. Now, we can only rely on shops to stop the damage. Insiders believe that The main reason for Baleno's deep vortex is the lack of innovation and the rhythm of the market. On the other hand, because of the rapid development of the electricity supplier, it also robbed most of the market share of the traditional brand "Baleno".

Pushing children's wear joint name IP

In fact, in order to save his performance, he said in his earnings report, The textile business will face another challenge year. The group will continue to control the operation cost and improve production efficiency. With a strong development team, more innovative and value-added products will be launched to enhance business performance.

The retail business will strictly control costs to reduce operating expenses, while strengthening the development of children's clothing to expand customer base. According to the plan, Baleno is upgrading its storefront, and new stores are appearing in business super.

At present, Baleno shop has opened up a separate children's clothing area in some commercial super stores. The children's wear part is also working with the cartoon IP, which is popular around the world, such as Thomas's small train, super flying boy and little Ma Baoli. It is reported that The independent children's wear area will be the main theme of the cross brand competition. 。 Insiders believe that This may indicate that Baleno children's wear shop is coming.

In fact, as early as April 1st of this year, Baleno launched its joint venture with Pepsi Cola on the official website. "Baleno Youth * Pepsi" But sales are not satisfactory. Data up to the day of the show showed that Baleno's joint Pepsi Cola has the highest sales volume of only 19 people, while most products purchase only a single digit. 。 Although Baleno's cross-border brand is creative, Pepsi Cola has crossed with many brands. Obviously, Baleno has no obvious advantage in it.

The industry believes that the current Baleno is in a stage of urgent need for all-round transformation and upgrading. Although it is not yet known whether overweight children can save Baleno's performance, it is possible to continue to develop more cost-effective, diversified and functional clothing products, optimize shopping experience and market promotion mode in order to make the brand younger.

Nowadays, children's wear market is very competitive, and all the children's clothing brands have their own characteristics, or focus on sports, functional areas, or focus on fashion and branding. But Baleno's children's wear market, how to locate and highlight the encirclement, is a pressing issue for the brand.

Insiders believe that In the fast fashion and the rapid rise of electricity supplier competition, Baleno is obviously left behind. 。 Baleno has no obvious advantage in brand, product, style and price. Facing the new round of consumption upgrading, Baleno, which only has the "special sale place", can rely on the joint name of children's clothing to get out of the downturn, and reshaping the mainstream competitiveness of the brand is still unknown.