Can Baleno Only Live In The Memory Of The Post-80S Generation?

In the movie Crazy Rock, Huang Bo, the face of the clown, reveals a proud smile. The brand Baleno, which is teased by the audience in the movie theater, is an indelible symbol in many 70 or 80 youth.

With the public

The market is gradually saturated, and fashion brands are mushrooming rapidly. This once fashionable fashion has been gradually forgotten by consumers.

The sale of 250 million last year caused a controversy.

Profits fell for the first time in four years, pushing Baleno into the draught of public opinion again.

According to the world clothing shoes and hats net, in the memory of the 80's, wearing a Baleno T-shirt embroidered with small water whale and entering the school, she can hold her head high and stride forward. Baleno also once became the "tide card" that the student party pursued.

In the movie "Crazy Stone", Huang Bo's mouth was not known whether he brought the brand exposure to Baleno, but the "brand name" of this stupid thief was later forgotten by consumers.

2016, due to Baleno inland

The slow growth and the failure to gain growth strategy through closed shop stops. Baleno's parent company, Germany Yongjia group, is finally unable to survive. When announcing the new quarter's earnings, it announces that its Affiliated Companies Baleno Kingdom Ltd, a non wholly owned company, will sell all the shares of Shanghai Baleno Kingdom Limited to Shanghai Hui Ye Industrial Co., Ltd. in 250 million yuan.

The sale of Baleno, the explanation given in the announcement, is that the company is currently reorganizing, selling and integrating resources for long-term development.

Baleno, after experiencing the "selling storm", began to "fail".

A few days ago, the German Yongjia group announced the latest annual report. The annual report shows that as of March 31, 2017, sales fell 15.9% to HK $7 billion 858 million, and profits plunged 54.5% to HK $479 million.

Among them, the core brand Baleno sales recorded HK $3 billion 144 million, down 3.6% from HK $3 billion 260 million in the 2016 fiscal year, which is the first sales decline in Baleno since 2013, the first time in four years.

Founded in 1981, Baleno was acquired by Hong Kong listed companies, Germany, in 1996. It became Affiliated Companies and subsequently entered the mainland market, thus creating the first place of domestic casual clothing.

According to the world clothing and shoe net, Baleno has more than 4000 stores at its peak.

But in recent years, the shadow of continuous losses and pformation failures has always shrouded in Baleno. In the 2011 to 15 years of four years, a total of 617 stores were closed, with an average closing 12 per month.

In the early twenty-first Century, Baleno, which was in a glorious period, was the best and most prosperous place in Guangzhou Beijing road. Baleno's six largest brands took the best place.

In Xidan, where young people gather in Beijing, there are basically Baleno stores in several shopping malls in the central area.

However, the scenery has never been with Baleno. With the fast fashion brands such as UNIQLO, H&M, ZARA and so on, they have entered China, and have launched a series of localized fashion trends to Chinese consumers. They have quickly occupied the Chinese market and formed a competitive squeeze on Baleno.

In recent years, in the mainstream business circle of a second tier city, almost no Baleno has been seen.

Some analysts pointed out that with the global fashion retail market downturn, Baleno, Giordano, Bosideng and Esprit brands are facing a collective crisis.

Faced with the rising millennial consumers, these once popular brands are facing the pressure of closing stores and declining profits or even losing money, struggling to compete with fast fashion brands for market share.

The decline of Baleno is a microcosm of brand competition in China's clothing market.

The brand represented by Baleno has occupied a larger market share through the initial channel resources, but with the market saturation and the improvement of people's consumption level, the marketing inferiority of brand aging, tonal singleness, lack of communication and interaction is becoming more and more prominent.

Especially under the impact of the Internet economy, the information asymmetry began to disappear, people's brand awareness was gradually awakened, and the younger generation pursued fashion. Baleno's brand "aging" also made it gradually divorced from the times.

Fast fashion takes the initiative of "fast" market, and the average shipment time of ZARA products is two weeks, which can produce 15-20 Series in one year.

An average of 20 minutes to design a garment, each year can be designed more than 25000 new products.

All the clothes in the ZARA headquarters warehouse will not be stored for more than three days. The store will send 2 orders to the headquarters every week to replenish the products, and the inventory turnover rate is 4-8 times higher than that of other brands.

And Baleno did not realize the importance of rapid response and quick shipment mode to seize the market opportunities, or in accordance with a multi set of factory production practices, resulting in a large backlog of inventory and weak turnover.

John C Jay, the global creative director of Fast Retailing Company of UNIQLO parent company, said in an interview that he would go to a place to get to know the local culture and understand the life of the local people.

Compared with the fast fashion brands such as UNIQLO, Giordano's unprofessional problems in market segmentation are highlighted.

Old fashioned style can not be changed with the trend, which is also a major drawback of Baleno.

Too much reliance on past models and achievements has not resulted in a timely pformation and missed opportunities to take the initiative.

Zhou Ting, President of the Institute of wealth and quality research, said that the limitations of China's own clothing brands are not so great as the marketing capabilities of international brands, or that the ability to tell stories is not enough. At the same time, it is too eager to make profits and quickly expand the stores.

Under the situation of low price and fast fashion brand channels, and the main market share of low-end clothing sharing online shopping, Baleno's future prospect is worrying. Whether it is the future pformation and upgrading or waiting for death is still to be seen.

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