Over 20 Apparel Enterprises Announced A Large Number Of Store Closures Or Brand Closures In The Past Year

The epidemic has accelerated the clothing industry's "survival with broken arms".

According to the previous report of Lianshang, more than half of the 64 clothing companies listed in the first half of 2022 saw their revenue and net profit decline. In the face of declining performance, "stop loss by closing stores" has become the common choice of enterprises.

According to the data published in the financial report, in the first half of 2022, 56 listed apparel companies opened 112722 stores in total, while at the end of 2021, the number was 115261, which means a net decrease of 2539 stores in the first half of the year, including 5810 stores closed by 38 listed apparel companies that disclosed specific store closing data.

The closing of stores under performance pressure is not limited to listed companies. This round of "closing and exiting tide" has swept from fast fashion brands and designer brands to "three pits" and even star fashion brands. 2022 is a year when clothing enterprises line up to say goodbye.

"The end of the old era" More than 20 enterprises have closed their stores or announced their withdrawal

At the beginning of 2023, the store of fast fashion brand ZARA on Nanjing West Road in Shanghai was officially closed. This store opened on February 24, 2006, is the first ZARA store of Inditex Group in mainland China. On the same day, ZARA Hangzhou Yan'an Store was also officially closed, which was the fourth store of ZARA in Hangzhou, opened in August 2014, and became the largest ZARA store in Hangzhou at that time with a business area of more than 3700 square meters.

H&M also closed its first store in the mainland. On June 24, 2022, the H&M store located at No. 651, Huaihai Middle Road, Shanghai was officially closed, which was the first store opened by H&M in 2006 in the Chinese market. According to public data, H&M has suffered a full setback from the first tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen to the sinking market, and has closed more than 40 stores in the first quarter of 2022 alone.

At the same time as ZARA closed its first store in the mainland, French fast fashion women's dress Cache is being sold at multiple stores in Beijing. On the Little Red Book, the user "Chong Chong" posted that the French women's dress brand Cache Cache will withdraw from the Chinese market: "Due to the change of the epidemic for three years, French fast fashion women's dress Pomanova is now withdrawing from the Chinese market". Under this post, many netizens commented that their local offline stores of Cache Cache have also closed.

In Shanghai, 1300 kilometers away from Beijing, we bid farewell to Joyce, the founder of the * * * buyer's shop. On January 15, 2023, Joyce's store in Hang Lung Plaza in Shanghai officially closed, which is also its last independent store in the mainland market.

According to incomplete statistics of Lianshang. com, in 2022, more than 20 apparel enterprises will announce a large number of store closures, brand closures or withdrawal from the Chinese market.

According to the statistics of Lianshang. com, the fast fashion category is a "disaster area" where stores are closed. In 2022, among the 20 enterprises that have sent a farewell message, there will be 10 fast fashion enterprises, accounting for half of the total.

To be specific, in addition to the large number of closed Cache stores mentioned above, which are suspected to withdraw from the Chinese market, GAP is also involved in the large number of closed stores.

In 2022, GAP will close its stores in Beijing, Shanghai, Guangzhou, Shenzhen, Changsha, Qingdao, Chongqing, Nanning, Nanjing, Foshan, Hangzhou, Nanchang, Kunming and Zhongshan.

In July, Bershka, Pull&Bear and Stradivarius, the flagship e-commerce stores of Inditex, the parent company of ZARA, announced the closure of their stores. From July 31, 2022, the online stores will stop selling.

In June, H&M closed its first store in the mainland;

In May, American Eagle, an American fashion brand, announced the closure of its online Tmall stores, and the brand officially withdrew from the Chinese market;

On April 1, the flagship store of fast fashion brand MONKI Tmall of H&M Group was officially closed;

In February, A&F closed the Kerry Center store in Shanghai, which is also a store of the brand in the mainland;

In January, the official flagship store of Tmall of Uterq ü e, a high-end brand of Inditex Group, was closed.

It is worth noting that in 2022, four brands of Inditex Group, the parent company of ZARA alone, announced their withdrawal.

In addition, the Hanfu brand Zhiyuji, the capital Nanzhuang, Yijin Jiudu and Huajianxi have announced the closure successively;

In terms of Chaopai, the Korean Chaopai Stylenda, which was ignited by The Descendants of the Sun, completely withdrew from the Chinese online market in October, and the Chaopai STAYREAL Beijing Xidan Joy City Store, which was founded by May Tianaxin and illustrator Buerliang, was closed in August, which means that STAYREAL has no more stores in the northern market.

Designer brand Babyghost, buyer store JOYCE and men's wear brand Slade also announced their withdrawal.

In May 2022, the men's wear brand Sillaide under the Ayurveda Group announced that all offline stores in China would be closed by July 31.

Slade pointed out that the sharp reduction of the customer flow of offline shopping centers and department stores has brought challenges to their sales recovery, while the high store costs have also made their operations unsustainable. The continuous high incidence of the epidemic, the weakness of the offline consumer market and the difficulty in reducing the rent cost make the goal of Slade to deal with the transformation of the consumer market far away.

The reason given by Slade is also one of the main problems faced by apparel enterprises at this stage.

The rise of new brands 92 clothing brands opened their first stores or innovative stores

Although the brand withdrawal was regrettable, the market was immediately occupied by new brands.

According to incomplete statistics of Lianshang. com, in 2022, 92 clothing brands will open their first stores or innovative stores in the Chinese market.

Chaopai, outdoor sports brands and luxury brands have flocked into the Chinese market.

When Stylenda and STAYREAL were about to lose their aura, Chen Weiting's fashion brand CANOTWAIT_ Settled in Shanghai Xinle Road; Chaopai SPOONYARD entered the MIXC in Tianjin. Guochao brands such as CLIMAXVISION, SMFK, supertofu, R è SIMPLE, ALL BEINGS, 33 Trente Trois seized shopping centers. South Korea such as ROMANTICCROWN, COVERNAT, pushBUTTON, WE11DONE, BLANC&ECLARE, Japan AMBUSH, UK A-COLD-WALL, Palace Skateboards, and American Chaopai Supreme also entered China to open stores.

According to incomplete statistics of Lianshang Network, in 2022, there will be 17 fashion brand enterprises among 92 apparel enterprises, accounting for about 18% of the total.

In addition, with the popularity of the 2022 Winter Olympics, sports brands have also flocked to the Chinese market.

In 2022, the Japanese outdoor brand Goldwin, the Austrian ski brand HEAD, the Norwegian outdoor brand Helly Hansen, the American outdoor sports Penfield Pandora bear, NFL, DCSHOES, the ski brand Peak Performance, the French outdoor sports brand K-WAY, the Swiss sports brand X-BIONIC, etc. all choose to open their first stores in the Chinese market in 2022.

BY FAR, The Row, Berluti, JIL SANDER, AMIRI, Ferrari, etc. joined in, and continued to expand the luxury market in mainland China.

In addition, clothing brands represented by Youngor and INXX are actively developing sub brands and making layout. Take Youngor as an example. In 2022, Youngor's brands MAYOR and HART MARX will open their first stores in Nanjing and Shanghai respectively.

Fast fashion brand FOREVER 21 and American extreme sports brand DCSHOES also choose to return to the Chinese market in 2022.