New Look on October 18, said in a statement, the brand will be closed before the rest of the Chinese market at the end of December 120 stores, Shanghai office will then be closed soon.They also said: "although we invested enormous in China in recent years, the performance has been lower than expected, failed to meet its future operations and investment needed for the sales and profitability.The company will ensure that the supplier, the lessor, the government and other relevant parties responsible for, ensure cooperation end in a satisfactory way, also will provide support to all affected employees."
Executive director Alistair McGeorge says: "a review of our business in China's trade performance and a lot of money to continue operating in the market, we made out of the difficult decisions in the Chinese market.We will focus on New Look after the transformation of the British market, in order to promote the growth of business performance and profitability."
From a number of stores, China is the largest overseas market, New Look has followed by 63 franchise in the Middle East.By march of this year, New Look overseas market losses of up to 37 million pounds
Four years ago, to enter the Chinese market, set up shop rhetoric for 3 years, 500!Nowadays, faced the shutters, is really hard to imagine.
NEW LOOK since it was founded in 1969, after decades of painstaking efforts, finally developed into the British fashion retail giant, young women in the UK market.
In 2014, a New Look in the form of directly entering the Chinese market, and stores all open in the rent more expensive gold business location, at a time when its domestic business in the UK during the recovery period.
Compared with the international apparel giant such as adidas, Nike, H&M, NEW LOOK to enter the Chinese time is a bit too late.
But in June released the annual report of huge losses, less than a week, the New Look group chairman AlistairMcGeorge said in an interview, all the stores are assessing group, will shrink and layoffs.In fact, in July 2015 NEW LOOK once dream three years 500 shops in China are put forward.
Unfortunately, NEW LOOK to build a prosperous time is far from themselves increasingly, blind expansion, a surge in stores not only failed to increase the strength of the company, it has become a heavy burden.
And the New Look is not the first announced his retirement from the Chinese market of the UK high street brand.In August of this year, Topshop parent Arcadia declared an early end to shangpin franchising partnership, which means Tmall flagship store operated by shangpin will be pulled from the shelves.Topshop and shangpin exclusive agreement in December 2016, and has plans to open 80 brand stores in mainland China.
Earlier this year, TOPSHOP was announced in September in central Shanghai to three floors and area of more than 3400 ㎡ opened the first flagship store in mainland China.The store will be even into TOPSHOP, the world's largest one of the shops.But more than half in the past, the store is out of sight.
Fast fashion brand expansion in China doesn't look the easy road.Topshop and achievable before entering the Chinese market earlier, there are new too slowly in the Chinese market, the problem of high price, thus lose the competitive advantage.
Now China local fast fashion brand Urban Revivo, MJStyle are rapid rise, New Look, and other brand if you want to return to China in the future market, must solve the problem of pricing and service, etc, to overcome the "water" in China.
This article from the network, byflannelette， Special fabricsThe enterprise release, hotline:13535008937