news

interface news reporter | chen qirui

interface news editor | lou qiqin

as high-end consumption cools, the expansion of leading luxury brands in the chinese market has slowed significantly. louis vuitton said during the epidemic that it would open at least one store in every provincial capital city in china, but recently it has closed its store in shenyang zhuozhan shopping center and removed the fence around haikou mixc.

louis vuitton is not the only one experiencing this change. today, these leading luxury brands are keen to open large stores with multiple floors in the core business districts of core cities, with the goal of providing more abundant merchandise and content to consolidate high-net-worth customers. but at the same time, some shopping malls in the core business districts of first-tier and new first-tier cities are also leaving more shops for mid- to high-end fashion brands.

recently, swedish fashion brandTotemea two-story store in taikoo li sanlitun, beijing, was blocked to occupy the fragrance brandDiptyque, jewelry brandsAPM Monacoand fast fashion brandsAbercrombie&Fitchanother designer brand in the adjacent enclosure isZimmermann, it is also a two-story store and is also facing the street.

this is part of the recent adjustment of the mid-to-high-end brand lineup of sanlitun taikoo li south district. other mid-to-high-end brands introduced includeIsabel MarantandMoschino. the brands being replaced includeCarven、ba&sh、MajeandSandrothese brands once had a certain reputation in the field of mid-to-high-end women's clothing.

the women's clothing market is highly competitive. although the above-mentioned mid-to-high-end brands have avoided the involution of the fast fashion track, they are also rapidly iterating internally. they do not rely on low prices and rapid new products as competitive advantages, but emphasize the uniqueness of their own style in the market, targeting urban white-collar workers and above.

for exampleZimmermannthe main product is the fairy skirt, andTotemethe most common style is french style.Carven、MajeandSandrothe advantage of such brands is that they can usually attract a group of loyal customers with a specific style, and the lower-than-average price of luxury brands helps attract more potential consumers.

some brands try to retain consumers by emphasizing cultural and historical values ​​in their marketing. however, in a rapidly changing market, telling stories that require long-term accumulation to build an image is not suitable for such small and medium-sized brands. for small designer brands, it is more common to quickly create hits to gain popularity and then emphasize cultural history.

Zimmermannand fairy skirt andTotemethe coats and scarves of the brand have become well-known. this may be the reason why they decided to expand further after a period of development.

however, the problem with these brands is that although they have a higher fashion attitude than mass brands and are more sophisticated in advertising, store image, clothing materials and services, they themselves became popular because of specific fashion trends. once the popularity is over, they will soon fall into a passive situation.

in the context of changes in the retail environment, brands that do not have advantages in terms of cost-effectiveness and value retention are more likely to be abandoned by consumers.ZimmermannandTotemeopening larger flagship stores is naturally included in the operational measures.

as high-end consumption cools, leading luxury brands have paused their expansion, and many mid- to high-end fashion brands and second-tier luxury brands have also started to buy at the bottom.“wangpu”even shanghai henglong plaza has recently opened a new space on the third floor to introduceAlexander Wang、Sacaiand other designer brands.

in addition to maintaining its luxury genes, shanghai henglong plaza obviously also wants to enrich the existing lifestyle atmosphere. as for the sanlitun taikoo li south district, which is positioned more towards the general public,ZimmermannandTotemethis type of brand attracts a wider range of potential customers, but can also maintain the overall mid-to-high-end positioning of the mall.

furthermore, with retail sales growth being hampered and market competition intensifying, real estate developers have to more actively look for designer brands that have not yet had much offline exposure or second-tier luxury brands that have had a small number of stores and small areas in the past. this is to maintain stable rental income and to retain consumers through a more diversified image.

some second-tier luxury brands also find opportunities in this.LOEWEin addition to the recent opening of a two-story flagship store in chengdu taikoo li, it has also built large multi-story stores in shanghai kerry center and changsha ifc. the former tenant of the shanghai kerry center store wasBurberry，2024the annual revenue is29.68billion pounds, howeverLOEWEthe annual income is about5100 million euros. (approximately rmb277100 million yuan and39100 million yuan)