Gucci First Image Shop To Shut Down Luxury Goods In Cold Wave

Global cold wave is coming.

In the winter of winter, the Gucci Renhe Spring store, located in the East Road of Tianfu Square, Chengdu golden commercial circle, has been closed down this winter.

In January 24th, came to Renren road Gucci Renhe Spring store to see, outside the shop has erected a large enclosure.

Nearby staff said the Gucci store had been withdrawn for more than 10 days.

Gucci China related personage said that the store is for the layout adjustment of the retail market, and continuously optimizing the layout of the retail market has been a regular item in the Gucci retail business.

The industry believes that luxury goods go downhill, not only because the overall consumption environment is sluggish, but the luxury brands are squeezing, and there are domestic and foreign price differences in the Chinese market, which leads to the outflow of consumers.

The first image shop in Southwest China is closed.

On the afternoon of 24 th, the people's East Road of Chengdu gold business circle was woven, but the original Gucci Renhe Spring store was erected with a huge yellow fence, which read "adjust and refit" several large characters.

Nearby, another luxury store employee said that Gucci stores had been withdrawn for over ten days. "It is said that they have closed shop here."

The above Gucci China related personage said that Gucci Renhe Spring store has indeed been closed, and the store is for the layout of the retail market. "The continuous optimization of the layout of the retail market has been a regular item in the Gucci retail business. These projects cover the opening, modification, migration, binding and adjustment of the retail market, and the new design concept will also appear in China from 2016, plus the new creative director."

It is understood that Gucci Renhe Spring store opened in 2011, and is also the first Gucci image shop in Southwest China.

The two floor business area is a total of 800 square meters, covering the Gucci season full range of products. The style of decoration adopts Gucci designed twill LOGO, which became the fashionable landmark of Chengdu at that time.

Gucci originally had three stores in Chengdu. After Renhe Spring store closed, only Tai Gu Li shop and Mei Mei store were left. Some Renhe Spring store employees also diverted to the two stores.

A staff member of Taigu store said that after the operation of Tai Gu Li shop, Renhe Spring store became "a discount shop", and the old style sold, the company may feel that it was not necessary to open a discount shop, and closed the Renhe Spring store. "All the goods inside it have been withdrawn, and some of the shop assistants have been disbanded and some diverted."

Expert analysis shows that luxury brand has been blindly expanding in China. Now, with the decline of consumer purchasing power, passenger flow has gradually gathered to the place where popularity converge. With the strong rise of IFS and Taigi Li business circle in Chengdu, some of the original commercial circles have been diverted. The international big brands are beginning to gather to IFS and Taigi Li business circle, and the cluster effect is becoming increasingly apparent.

Luxury goods lift off shop tide

Luxury goods in China

Continuous shrinking, a "closed shop tide" in the domestic setting, new store expansion more cautious.

Bain's latest report shows that in 2015, Gucci closed 5 stores and opened only 1 stores.

The reduction in the number of stores is behind the decline in sales of luxury goods in China.

The report shows that the size of China's luxury goods market continued to drop to 113 billion yuan in 2015, an increase of 1 percentage points over the same period last year.

However, relative to the domestic market, because of the advantages of exchange rate and competitive luxury pricing, South Korea, Europe and Australia have also become popular shopping places for Chinese consumers in 2015, and Japan's growth is more than 200%.

Luxury goods are cold in China, and Gucci is also deeply aware of the "cold wave".

Kai Yun group's financial report shows that in the third quarter of 2015, Gucci's global revenue was 924 million euros, an increase of 8.6% over the same period last year, but the Asia Pacific region's revenue declined by 17%, the biggest decline.

Among them, the weakness of sales in mainland China can not be ignored.

"In China, the consumption of luxury goods has changed significantly since 2012."

Zhao Ping, a researcher at the China Council for the promotion of trade, said that the introduction of the "three public consumption" regulations has changed the domestic consumption culture.

At the same time, these luxury goods are also facing other luxury goods, especially light luxury goods.

Chasing and grasping are more attractive to young people.

China's luxury market is going downhill, and the price difference is an important factor.

It is understood that Gucci at home and abroad at least 20%~30% difference.

Zhao Ping said, "the expansion of cross border electricity providers and B2C sales channels, the impact on the store."

Domestic pricing is too high for many consumers to go abroad.

The industry suggested that luxury brands should resist "cold winter" not only to adjust their store strategy and product design, but also to adjust the global price difference to solve the problem of declining sales of Chinese consumers overseas.