Aamp; F’s first store in Shanghai has begun clearance and will close soon

Aamp; F’s first store in Shanghai has begun clearance and is about to close.

Aamp; F’s first store in Shanghai has begun clearance and is about to close. In 2014, the American casual clothing brand Aamp; , the first store was opened in Jing’an Kerry Center, Shanghai. The store will close in a few days. A&F's first store in Shanghai has begun clearance and will soon close. Aamp;F’s first store in Shanghai has begun clearance and is about to close 1

Recently, news came out that the Aamp;F flagship store on Nanjing West Road is about to close. The “clearance discount” on site attracted many citizens to come. Go shopping.

Compared with the lively scene when this brand’s first store in mainland China opened in Shanghai in 2014, its sad departure today is inevitably sad.

In fact, as early as the beginning of last year, the brand had confirmed that it would close its Shanghai flagship store in fiscal year 2022. However, the rumors of "exiting China" are not true. The A&F Industrial Taikoo Hui store is currently not affected by Affected, we are still operating normally.

However, it is still unknown how China will go in the future and how long it can go.

The notice board "Our store will close at the end of February" is not displayed outside the main entrance along Nanjing West Road, but is placed in the gaps between different shelves, with the words "Looking forward to seeing you Meet us online and offline", and indicated the address of the store located on the 2nd floor of HKRI Taikoo Hui.

At noon, there are not many customers in the store, mainly concentrated in the clearance discount compartment on the first floor. Different shelves indicate the size range and “20% off for more than 2 items”, shirts, sweaters , coats, etc. were lined up, looking a little messy.

"The price is okay, if you include the 40% discount, it's still okay. However, the code breakage in the store is serious, and the display is a bit messy, so the shopping experience is average," according to Ms. Xue, a citizen, observed that the original discounts of 30% or 20% off for new products or basic models in the store were not very attractive to her.

During the random interviews conducted by reporters, many consumers also said that they were just taking advantage of their lunch break to browse casually. They were not very familiar with this brand, and whether they closed the store would not have any impact on them. .

In fact, this leisure brand that focuses on American sports style had quite a battle when it entered China. When the first mainland store opened in Shanghai, it continued the tradition and invited ten More than a dozen male models were on hand to help out, and the scene was unparalleled. At a time when the Internet celebrity economy has not yet become popular, A&F can be regarded as the "first generation Internet celebrity" in Shanghai.

How come the “originator of internet celebrity” has to say goodbye after just a few years?

The response given by the staff of the flagship store as to the reason for closing the store was "it was decided by the company." In fact, as early as the beginning of last year, A&F brand executives had made it clear that the remaining seven global flagship stores around the world would be closed by the end of 2023, including A&F’s flagship store on Fifth Avenue in New York, and the Shanghai flagship store has also been closed. Included in the store closing plan for fiscal year 2022. The brand announced that it will invest more capital expenditure into digital business.

However, this brand has not completely given up on the offline market. The rumors of "exiting China" circulated on the Internet are not true. There is still one HKRI Taikoo Hui store left in Shanghai. The staff said that it has not been affected by the closure of the flagship store, and the discounts and activities in the store are consistent with those of the flagship store. “There may be slight differences in styles and categories, such as those in the clearance area of ??the flagship store. The quantity is larger, and we have a full range of sizes.”

Looking through the comments of netizens on social platforms, combined with today’s reporter’s interview at the store, we can also slightly conclude that this brand has declined. part of the reason.

The product has low viscosity and strong substitutability, and the brand memory is only limited to the male models who helped out at the opening. Naturally, it cannot firmly capture the attention of consumers; the quality of clothing After declining, and the brand positioning tilted towards fast fashion, the pricing remained high, naturally unable to convince picky consumers to pay; in recent years, China's e-commerce market has developed rapidly, coupled with the rise of national trend culture, people's recognition of local domestic brands has increased. It further compresses the living space of overseas clothing brands.

From Mamp;S to Forever 21, from Camp;A to Topshop, there are many fast fashion brands that have gradually struggled to gain a foothold in the Chinese market in recent years. A&F is not the first, and will not be the first. The last one. How overseas fashion brands can better explore the Chinese market in the future is still a difficult issue. A&F's first store in Shanghai has begun clearance and is about to close 2

In 2014, the American casual clothing brand Abercrombie & Fitch (hereinafter referred to as "A&F") entered China for the first time, and its first store was opened in Jing'anjia, Shanghai. center. However, after 8 years, the store will close in 4 days.

On February 17, a reporter from International Finance News visited A&F’s Kerry Center store in Jing’an District, Shanghai. As soon as he entered the door, he saw “20% off limited-time discount on selected jeans” and “clearance” "Extra 40% off for items in the discount area" sign. Discount signs and signage reminding customers to shop at the nearby HKRI Taikoo Hui store are also placed on many shelves in the store.

(Photo by Yu Miao)

According to the statement given by the store clerk to reporters, the store is expected to cease operations on February 20, and will be open on that day. After the closure of the Jing An Kerry Center store on its last business day, A&F will have only one store in Shanghai, located in HKRI Taikoo Hui.

The first store in Shanghai is about to close

Public information shows that A&F, an American casual clothing brand, was founded in New York, USA in 1892. It specializes in American casual fashion and is deeply loved by European and American teenagers. In addition to the main brand A&F, the group also launched the California-style youth brand Hollister, the home sports brand Gilly Hicks and the clothing brand Social Tourist with social media popularity as its core after 2000.

According to the timeline, A&F’s initial layout in the Chinese market dates back to 8 years ago, and the first store was opened in Jing’an Kerry Center, Shanghai. When it opened, the company used "sexy marketing" to build momentum and hired more than a dozen male models with bare upper bodies and abdominal muscles to promote it. It attracted a large number of fans to take photos and also caused a lot of controversy. At that time, some media reported that Nanjing West Road was blocked by onlookers. The queue in front of the gate was more than 1,000 meters long, and some people even started queuing in the early morning.

The grand occasion of the past is still vivid in our minds, but now this store has ushered in the closure of the store. The reporter learned from asking the clerk that the store currently has separate areas for women's clothing and men's clothing on the first and second floors respectively, offering a 40% off clearance sale for two items, but the remaining product areas can only enjoy a 30 to 20% discount, and some Products are still on sale at regular prices.

The reporter noticed that at noon, several waves of customers came into the store to choose, but most of them were concentrated in the promotion area. According to feedback given by a customer to the reporter, he works nearby and often comes to this store to shop. Recently he learned that the store was about to close and came to take a look. “This store usually has some discounts, but nothing like this. The discount is great. The quality of the brand is average, and the polo shirts tend to stretch out when machine washed, but the sweatshirts and sweatpants are okay and comfortable to wear. The sweaters are also good, but you need to be careful when washing them. ”

At present, A&F officials have not given specific reasons for the closure of the above stores. One clerk told reporters that maybe it was because the contract had expired, while another clerk said he didn't know.

According to Ma Gang, an independent commentator on the retail industry, there are three main reasons why A&F closed its first store in Shanghai. The first is that China’s consumption environment has been extremely complex in recent years and the impact of the epidemic has increased uncertainty; The brand's ability to cope with complex changes is insufficient; the second is the replacement of old and new domestic brands, and the launch of new brands has seized the market share of traditional old brands; the third is that the consumption environment has changed from marketing-oriented to consumer-oriented, and the brand has not adjusted its products in a timely manner and marketing led to declining performance.

According to the official website, excluding the first store in Shanghai that is about to close, the brand currently has only 15 stores in the mainland, distributed in Beijing, Chengdu, Nanjing, Xi'an and other places.

The "loneliness" of fast fashion

Not only is its development in the Chinese market unfavorable, but from the perspective of the international market, A&F's performance is also unsatisfactory.

A&F’s latest financial report shows that as of October 30, 2021, its number of stores worldwide is 735, of which 536 stores are located in the United States, and the number of stores in the international market is only 199. In addition, Hollister stores account for a larger proportion in the international market, with 151 stores, while A&F stores only have 48 stores.

Judging from performance, A&F’s current revenue is still concentrated in the U.S. market, its home base. The 2021 third fiscal quarter report shows that the company's net sales increased by 1.036 to 905 million US dollars year-on-year from 820 million US dollars in the same period of 2020, but this was mainly due to the revenue performance of the core market of the United States, while sales in the Asia-Pacific region recorded a decline of 12, It was the largest decline among all regions.

Cheng Weixiong, a brand management expert in the footwear and apparel industry and general manager of Shanghai Liangqi Brand Management Co., Ltd., said in an interview with reporters that the positioning of the A&F brand is relatively niche and the price is higher. , the actual product quality and design do not match the positioning, and there is a lack of innovation. “With the rise of the national trend, such brands with inaccurate positioning are easily iterated by alternative brands with more affordable prices. In addition, the epidemic situation brings It’s reasonable to have stores closed due to the impact.”

In fact, in recent years, life for international fashion brands has not been easy.

On the eve of "Double 11" in 2018, the fast fashion brand TOPSHOP, known as the "originator of British high street", posted a "store closure" announcement in its Tmall flagship store, saying that due to international business The operation strategy has been adjusted and the Tmall flagship store will be closed and the entire store will be cleared from now on. At the end of the same year, British high-street clothing retailer NEW LOOK also officially announced its withdrawal from the Chinese market.

In May 2019, Forever 21 China official website customer service staff confirmed to a reporter from the International Finance News that after announcing the closure of the Chinese official website and the flagship stores of Tmall and JD.com, Forever 21 due to the international business operation strategy The adjustment will officially exit the Chinese market.

At the end of 2019, Old Navy also confirmed that it would withdraw from the Chinese market in early 2020. Both offline stores and online malls will be closed in early 2020.

Six months later, the British fashion brand Superdry announced its official withdrawal from the Chinese market through its official WeChat account. Superdry said that due to the impact of the new crown epidemic, it will temporarily leave the Chinese mainland market.

At that time, a person who had worked for a large domestic clothing company told a reporter from the International Finance News that after more than ten years of rapid development, the fast fashion industry was now in a state of surplus. . Coupled with the impact of the epidemic, "closing stores" and even "exiting" have become the most mentioned words in the industry. Aamp; F’s first store in Shanghai has begun clearance and is about to close 3

American fashion brand Abercrombie & Fitch (Aamp; F) is now in an embarrassing situation. Recently, a reporter from Beijing Business Daily learned that A&F’s first store in mainland China will cease operations on February 20, and the children’s clothing business will also be removed from the Asia-Pacific region.

To this day, fans who follow A&F can still recall the grand opening of the first store in 2014: people crowded around and took photos with fashionable male models. In the past eight years, why has A&F fallen from the altar?

The glory is gone and the first store will be closed

How sensational it was in the past, it is now so lonely.

Recently, a Beijing Business Daily reporter confirmed from a customer service staff member of A&F China’s official website that A&F’s Kerry Center store in Jing’an District, Shanghai is expected to cease operations on February 20. As for the reason for closing the store, the employee responded to reporters that he did not know. Judging from the pictures posted by some netizens, the store is conducting a clearance event with a 40% discount on two items or more.

Some consumers who visited the store still remember the grand occasion when it opened a few years ago. On April 19, 2014, A&F entered the Chinese market and opened its first flagship store in Shanghai's landmark Jing'an Kerry Center. When the store opened, dozens of muscular male models gathered in front of the store to take photos with fans who rushed forward. Nanjing West Road was packed with onlookers. "The queue was more than 1,000 meters long, and many people were queuing up early in the morning!" Some media described it this way at the time.

However, in the past eight years, A&F has become quite cramped in the Chinese market. According to A&F China’s official website, Abercrombie kids has ceased operations in the Asia-Pacific region. When visiting two A&F stores in Beijing, a Beijing Business Daily reporter learned that the Sanlitun store had removed children's clothing on January 10, while the Huiju store had never put children's clothing on the shelves.

At the same time, the Beijing stores that continue to operate are still offering clearance discounts. For example, at the Sanlitun store, you can enjoy a 15% discount on some tops and jackets if you buy two of them, while products on the first floor are being cleared. "After the Spring Festival, some inventory needs to be promoted and sold off." A staff member said that if you like some styles but the size is not available in the store, the store can ship the product to the consumer's home for free after payment.

Currently, according to the information on the official website, if the first store in Shanghai is subtracted, the number of A&F stores in Beijing, Nanjing, Chengdu, Qingdao and other places is 15, while the other parts of the group The number of sub-brand Hollister stores is 18. It is understood that the Hollister market is targeted at the youth group.

Expansion stagnated and left behind in wandering

On social media, some netizens are still recalling and discussing A&F’s highlight moments. "I often buy this brand when I study in the United States. It is very affordable and the quality is good. The products of A&F are also very popular." "It is the memory of international students." However, apart from regrets, many netizens also think that A&F's products are very popular. There is a mismatch between price and quality, and clothing design is becoming increasingly difficult to attract.

"Not only A&F, but also some American fashion brands such as GAP, Victoria's Secret, etc. are also having trouble developing in the Chinese market. The reasons include business strategies. "Mistakes and inadequate product adjustments, etc." Yang Dayun, founder of the Sustainable Fashion Digital Innovation (Beijing) Center, told a Beijing Business Daily reporter, "Not to mention children's clothing, A&F's adult clothing market is also very small in China. The time and development speed of the Chinese market are not directly proportional. When Uniqlo and ZARA were advancing vigorously, they were more conservative and cautious. Nowadays, the competition in China's casual wear market is very fierce, the market is saturated, and the consumption level is becoming increasingly clear. It is difficult for A&F's brand innovation to keep up. It is necessary to enter the Chinese market, and the success rate is also smaller.”

Judging from the latest financial report of A&F Group, as of October 30, 2021, the number of A&F stores worldwide is 735, of which the number of stores in the international market is 199 and 536 stores is located in the United States. Hollister stores account for a larger proportion in the international market, with 151 stores, and Abercrombie & Fitch stores have 48 stores.

However, from the perspective of its international expansion, A&F has almost stagnated. Financial report data shows that as of February 1, 2019, 2020 and 2021, after the number of stores of the two brands expanded from 198 to 207, it shrank again to 198. In 2021, Hollister closed 2 stores, while Abercrombie & Fitch closed 4 stores.

This is in sharp contrast to the speed with which other international brands such as Uniqlo have seized the market. Data shows that at the end of August 2020, the number of UNIQLO stores in China reached 767, surpassing the number of directly operated stores in Japan for the first time, and 3,000 are expected to be opened.

What’s even more serious is that when it entered the Chinese mainland market in 2014, it was ushering in a period of rapid development in the domestic e-commerce industry. According to statistics from Tianyancha, in 2015, the growth rate of the number of Chinese e-commerce companies reached a peak of 72.47, and remained at around 40 in 2016. In 2013, Yangquan App was launched. In 2014, Xiaohongshu entered the cross-border business. The accelerated expansion of cross-border e-commerce has further deepened the consumer mentality of online shopping online and made more and more imported goods available at your fingertips.

At that time, when A&F was still immersed in the excitement of opening its first store in mainland China, on the other hand, the knockout competition for international brands had quietly begun.

The main brand has lost its power and the market response has been weak

"In the past few years, the group has mainly relied on the subsidiary brand Hollister to survive, so the market vitality of the A&F brand has been questioned." Fashion expert Zhang Peiying pointed out to a Beijing Business Daily reporter.

The financial report shows that in 2020, Hollister’s net income was US$1.834 billion, a year-on-year decrease of 15%, while the main brand A&F was US$1.291 billion, a year-on-year decrease of 12%. Between 2018 and 2020, Hollister became the main revenue generator. However, in 2019, the growth rates of the two major brands have encountered stagnation. A&F's overall revenue growth was only 1, while international market revenue fell by 4 year-on-year.

Perhaps, due to the market bottleneck that the group was unable to get rid of, A&F ultimately proved unable to win the love of Chinese users and gradually became a marginal role among international brands.

“From the brand A&F, we can see the environment of the entire international FMCG brand, that is, people’s pursuit of fast fashion, the accelerated pace of life, and the formation of new purchasing power. These are all good opportunities. At the same time, this environment has also given rise to diversified demands. Therefore, it is a very big challenge for many brands to seize consumer demands, follow the trend, maintain cutting-edge competition, and face great uncertainty." Zhang Peiying believes.

Zhang Peiying said that in the era of diversification and personalization, a brand can grow up very quickly, and it can also go downhill very quickly. Especially in the field of fast fashion, it faces far more opportunities and challenges than other fields, because its consumer groups are destined to be individual, or the needs are not so standardized. Therefore, the development status of A&F is also a big warning. Brands need to follow market guidance at all times.

“In other words, this is the charm of fast fashion. If we can adjust in time and adopt effective marketing and operations, including adjustments to strategic strategies, we may soon have a turnaround. " he said.

According to the latest financial report of A&F Group, in the third quarter of 2021, the group’s online sales were US$413 million, a year-on-year increase of 8%, and a year-on-year increase of 55% compared with 2019.