Chapter 232 The Second Entrepreneurship (For the Future That Never Comes)
The business of Huashang brand store has also been greatly affected. Wu Guohong personally conducted a market research last year.
She was surprised to find that there were many empty shops in the second-level business district where the business was originally quite good.
You should know that it was difficult to get empty shops a few years ago, such as pedestrian streets and commercial streets that were popular.
If you want to find a suitable store there, you need to start inquiring six months or even one year in advance to see which store will not be rented after it expires, or the landlord is unwilling to rent it to the original tenant, so make a decision quickly.
At that time, if the monthly rent of a store was 10,000 yuan, it would be as simple as renting it for a year, which is definitely more than 120,000 yuan. There are also messy tea drinking fees, benefits and other things waiting. You even have to pay twice the rent in the first year.
The saying "one shop raises three generations" is not just a saying.
But now, everything is different. One shop has three generations of people and the most popular business districts. The other third-level business districts are obviously much deserted.
On the one hand, this is the influence of the rise of online shopping, and on the other hand, commercial real estate such as shopping malls are beginning to rise.
Consumers suddenly discovered that they could go to the shopping mall on weekends and enjoy it all day without having to come out.
There is food, drink, play, shopping, and watching movies!
And the environment is good, there is heating in winter and air conditioning in summer. When you are tired of shopping, you can find a special restaurant to sit and have some food and drink.
If it doesn't work, you can go to a movie or play a game console.
In contrast, the crowded and noisy environment of the Commercial Street Pedestrian Street makes you unable to find a place to sit when your legs are so tired.
In summer, I braved the scorching heat and sweated all over.
It is cold in winter and trembles with coldness.
Only with this comparison will the fool go to the pedestrian street again, and all the shopping malls are coming in a honeycomb.
Coupled with the convenience and speed of online shopping, the decline of traditional commercial streets and pedestrian streets.
THE TOP The stores of SHOP are all open in the core business districts and the highest-end shopping centers in major cities, so of course they have not felt any impact.
But the Huashang brand is different. Many of its specialty stores are open in second- and third-level business districts. The decline of these business districts directly affects the sales of many stores.
So when Wang Ye talked about the commercial street and pedestrian street, Wu Guohong was deeply touched.
"So what should we do?"
Wang Ye looked at everyone with bright eyes.
This question is not something that ordinary people can answer.
With so many participants on site, only a few people who often come into contact with the front-tier market are qualified to answer.
After thinking for a while, Cai Zi'ang said tentatively: "Improve the positioning of Huashang brand? Then enter the core business district and high-end shopping center?"
Since the launch of the Huashang brand, it has been priced in the mid- and low-end style, with a young and fashionable style, but this positioning makes it difficult to enter high-end shopping malls.
It is impossible to enter like the ocean Taikoo Li in Rongcheng, the Vientiane City in Pengcheng, the Xintiandi in the capital, etc.
Even if Wang Ye finally got to a store through relationships, it would be difficult for Huashang to survive after opening the store.
Due to the brand style issue, other brands around are all big brands, very stylish.
You are a "garbage-old hat" that is mixed in, and it is difficult for consumers to accept it.
Therefore, Cai Zi'ang said that he would change Huashang's positioning, increase prices, and adapt to shopping centers so that he could enter a better shopping center.
Wang Ye shook his head and said, "Once the brand is launched into the market, it will be difficult to change its style and positioning. Moreover, Huashang has many specialty stores now. After you change your positioning and price, you are qualified to enter a better shopping mall.
But have you ever thought about what to do with specialty stores in third- and fourth-tier cities? Can consumers in small cities accept clothes with a unit price of thousands? What's more, this brand was only sold for three or four hundred yuan a while ago."
It is a business taboo to change the brand positioning rashly. At that time, it may not only not win the favor of new customers, but also lose the loyalty of old customers. Of course, Wang Ye is unwilling to do things that are not worth the loss.
Li Qinghuan remembered the issue of THE TOP SHOP’s competitors that she discussed with Wang Ye, and was also moved. He said, “It’s a pity that THE TOP SHOP is too high, so he can go to a second-level city. It will be difficult to develop into third- and fourth-tier cities. Otherwise, THE TOP SHOP model is very suitable for shopping malls.”
Ma Kaixuan said anxiously: "Mr. Wang must have a good idea. Just tell me quickly, we will all listen to you!"
Although Ma Kaixuan has a low level of education and cannot say that he has any sense of business, he is accurate in judging people.
According to his idea, since Wang Ye raised this question and saw the changes in the current market situation, there must be a mature solution.
Everyone has to think about it. Isn’t it enough to hear Wang Ye say what to do?
When everyone heard this, yes, Wang Ye raised this matter solemnly today, there must be a mature solution. Just listen to him and say no.
Looking at everyone's expectant eyes, Wang Ye said confidently: "HuaShang International needs a second entrepreneurship!"
No one understood that Huashang International has been listed, so why do you still have to start a second business?
"Not breaking or building, now it is not only the business model is undergoing major changes, but more importantly, consumer habits are also changing.
All brands, I mean all categories, not only clothing brands. If they do not adapt to this trend and make changes, they will inevitably be eliminated, and it will not take too long and will be seen in a few years."
"Take Belle as an example, it is the undisputed overlord of the footwear brand now, with its market share basically accounting for half. However, it is facing a huge crisis. If it does not make positive changes, I dare to assert that it will decline if it cannot last for five years."
After listening to it, everyone felt incredible.
Who is Belle? That's a giant in the shoe industry. You can check it out when you go to a department store. Basically, the women's shoe area is full of Belle's brands!
There is a jargon in the department store, "No Belle can sell shoes."
That is to say, if there is no Belle entering a department store, you can directly cancel the footwear brand area because there is no other brand to sell!
Once upon a time, a new department store opened, and the first brand to be discussed was Belle, and Belle usually took all the locations in the footwear area of a department store!
After reading the introduction about Belle, you will know why Wang Ye’s prediction surprised and disbelief.
...
Xiangjiang Belle Group has more than 80,000 registered employees and its direct sales system covers more than 200 cities. It has more than 10,000 self-operated retail stores in mainland China, and thousands of self-operated retail stores in Hong Kong, Macao and Taiwan.
The group owns its own footwear brands include: Belle, Teenmix, Tata, ato (Sikatu), FATO, Senda, Good Popularity, BASTO, MILLIE’S (Miaoli), Jipijapa , Joy & Peace (True Beauty Poetry), (Innel), etc.
The company's footwear brands are represented by: Bata, ELLE, BCBG, Mephisto, Geox, Clarks, Merrell, Caterpillar, Sebago, etc.
As of May 2008, Belle International has 28 owned and represented footwear brands; there are 10 owned and represented sports brands. Belle Group is also one of the largest retailers of sports goods in China. The sportswear brand products sold by agents include: Nike, Adidas, Li Ning, Kappa, Converse, Reebok, Puma, Mizuno; it also sells casual denim brand Levi's.
Among the top 10 domestic leather shoes markets in 2008, 6 brands belong to Belle Group.
They are Belle Belle (first), Teenmix Tianmeiyi (second), Tata (fourth), ato Sigatu (sixth), Senda (seventh), and BASTO?Basto (ninth).
Belle Group's core brand "Belle Belle" has been ranked first in China's women's shoes sales for 13 consecutive years. It is one of the most well-known brands of footwear in China. It has won many honors such as "China's Famous Trademark", "China's Famous Brand", "China's Genuine Leather Shoes King", and "China's Genuine Leather Logo Brand".
...
There are up to 38 brands owned and agents!
Moreover, 6 of the top ten footwear brands in the mainland market belong to Belle!
It is said that Belle Group is in a monopoly position in the footwear industry, and no one is opposed to it.
It has indeed monopolized the footwear counters in department stores for more than ten years.
And now Belle is at its peak. In the past two years, Belle's share in the footwear market has reached more than 10%!
Belle, which is listed on Xiangjiang, now has a market value of up to HK$150 billion, which is even more than the two Huashang Internationals.
Wang Ye now said that if Belle does not make major changes quickly, it will decline in less than five years, so how can it not be believed?
"Dr. Wang... you are not kidding." Wu Guohong said in surprise.
"I don't think it's possible. No matter how the business trends change, it's still up to the brand. Belle brands are all very famous brands." Ma Kaixuan also said he couldn't believe it.
Wang Ye smiled slightly and said, "Why do you want to make a bet? Five years later, after I bet, the market value of Belle Group is only a fraction of what it is now, which is about 50 billion Hong Kong dollars."
After five years of development, the company's market value is only a fraction of what it is now? No one present dares to believe it.
However, no one dared to bet with Wang Ye. He said so confidently, and what Wang Ye said and did in the past was proved to be correct.
"Hehe, we believe what you said. Mr. Wang, just say, how can we start a second business?" Ma Kaixuan quickly changed the topic.
Wang Ye did not continue talking about Belle's topic. He knew Belle's fate, but everyone present didn't know.
It doesn't take five years to go, and Belle will decline at a surprising rate from next year to the next.
Chapter completed!