Recently, Hush Puppies, a world-renowned brand, has suddenly launched an unprecedented promotion in the Chinese market, which has attracted the attention of many consumers, and even in some areas, consumers have rushed to queue up to buy it. It is understood that the company has changed its boss last year and is now withdrawing cabinets nationwide, which is the main reason for this big promotion.
Since 2018, many European and American brands have withdrawn from the Chinese market, or basically abandoned the expansion of the Chinese market, why is this? Experts said that the great changes in the environment of China's clothing consumer market, the strong rise of China's local brands, and the enthusiasm of young people for local brands are the key.
Walkers cut prices on a large scaleRecently, the company launched a big promotion in the Chinese market, and goods such as coats were sold at very low prices. Such promotional activities have aroused enthusiastic responses in shopping malls in Chengdu, Shanghai and other places, and many consumers have rushed to buy them.
The reporter visited several Shaobu Shi in Jinan and found that most of the stores were placed with some spring and autumn and winter clothes, and summer clothes were relatively rare. Among them, there is a 3.5% discount for winter clothes and a 7% discount for spring and autumn clothes. A winter down jacket with an original price of 3,699 yuan can now be won for only about 1,200 yuan.
According to the clerk of the Walker (Jinan Yuhan Ginza store), at present, the Walkers nationwide are withdrawing from the cabinet, so there are large discounts, "Our brand is an old brand founded in 1958, and there has never been such a big discount before." At the same time, this year, the Walker will no longer be on the shelves.
The reporter found on a social media platform that in Chengdu, Shanghai and other places, many leisure shops have discounts as low as one discount, and many consumers have entered the store to buy them, "I bought more than 20 pieces this time, and I have always liked this brand, and I bought a few winter clothes for tens of thousands of yuan a few months ago, and now I can buy them for 100 yuan."
Jinan Walkers store
Changed the "new boss"Walker is a world-renowned casual footwear brand founded in 1958. The brand's founder, Jim Muir, has a unique understanding of it, believing that it is a family-owned brand, regardless of gender or age, and is a casual wear item for the whole family. For a long time, he has led the casual fashion in Europe and the United States, covering hundreds of countries around the world, and celebrities such as Elvis Presley, the Rolling Stones, and Warren Buffett have been photographed wearing Walker products.
Since entering the Chinese market in 1997, the company has been targeting the mid-to-high-end consumer group, and has won the love of consumers with its unique design and excellent quality. The reporter asked a number of clerks in Jinan, and they all said that the brand's sales had been good before.
The reporter learned that the main reason for the sudden promotion of the soothing Bushi clothing that was not worried about selling was "a new boss". On September 1, 2023, Chinese children's clothing king Jiaman Apparel announced that it would acquire the IP assets of Hush Puppies brand in Chinese mainland, Hong Kong and Macau with its own funds, including core trademarks such as "Hush Puppies" and "Hush Puppies", as well as 155 related trademarks in all categories and IP such as 2 patents, 4 copyrights, and 6 domain names. The total consideration of the transaction is 58.8 million US dollars (about 427 million yuan), and the acquisition means that the business entity of the company in the Chinese market has changed.
In fact, the cooperation between Garman clothing and Walkers has long been related. According to the 2023 semi-annual report of Jiaman Apparel, the company obtained the exclusive right to operate the children's clothing in China in 2013. In January 2024, Garman announced that the transaction related to the acquisition of the assets of the company has been completed. After the completion of the acquisition, Jiaman Apparel will have the opportunity to re-integrate the resources of the full range of products and form a business synergy.
Why European and American brands frequently withdraw from the Chinese marketSince 2018, many brands have withdrawn from the Chinese market or basically abandoned their expansion into the Chinese market. In July 2022, ZARA's three sister brands, Bershka, Pull&Bear and Stradivarius, announced the closure of their Tmall flagship store, and from July 31, 2022, the online store will stop selling products, which means that they will officially withdraw from the Chinese market.
Coincidentally, in March this year, SMCP, a French luxury group that owns Sandro, Maje and Claudie Pierlot, released its 2023 performance report, saying that the performance of the Chinese market was lower than expected, and it plans to reduce the size of its sales network in the Chinese market by about 15% in the future.
In recent years, many international fast fashion brands such as British fast fashion brands NEW LOOK and Topshop, American mass fashion brand Forever21, fast fashion brand Old Navy have officially announced their withdrawal from the Chinese market, H&M closed its first store in Chinese mainland on June 24, 2022, and Ayazhi Fashion's menswear brand SELECTED also closed 1,300 stores in the Chinese market in July 2022 and switched to online channels.
Jinan Walkers store special activities
Why are these European and American brands closing stores in the Chinese market, changing their strategy of rapid expansion?
Zhang Mingzhi, deputy dean and associate professor of the School of Economics of Shandong University of Finance and Economics, said that the main reason why companies chose to withdraw from the market was that the market performance did not meet corporate expectations.
"In recent years, China's market environment has changed a lot. Zhang Mingzhi said that because China's clothing consumer market has entered a new era of quality and diversified consumption from the mass era, consumers not only have a higher pursuit of quality, but also become more selective.
China's local fast fashion brands have risen strongly, from followers and imitators to innovators and leaders, who understand Chinese consumers better and are more competitive.
The rise of national tides, trendy toys, trendy products and other trends has made today's young people show different consumption characteristics. "Because of today's intensified competition and compressed production costs, the prices of many Guochao products are very affordable. Zhang Mingzhi said that in this situation, many international brands are challenged.
Zhang Mingzhi believes that in today's market environment of rapid development of the online economy, it is worth thinking about how enterprises can quickly respond to short-term changes and ensure the accumulation and maintenance of long-term brand value in the face of market environment estimates.
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