Giordano'S Same Store Sales Decline In Vietnam

< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > clothing brand < /a > Giordano has issued a notice recently. Its subsidiary has signed an agreement with its partners and established a joint venture in Vietnam.

Giordano said Vietnam is an emerging market with great potential in fashion retailing and will inject $600 thousand into the joint venture company.

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< p > analysts say that the fierce competition in the mainland garment market and Giordano's joint venture can be seen as a move to grow overseas markets, and the opening up of the Vietnamese market will bring new achievements to the company.

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< p > < strong > Southeast Asian market > /strong > /p >

< p > 13 evening, there was little announcement of Giordano's appearance. Its wholly owned Affiliated Companies TrulySmartLimited has entered into an agreement with YEOBoon Liang and NGUYEN ThanhTung two to set up a joint venture company.

The joint venture will mainly be engaged in the establishment, management and operation of Giordano and BSX retail stores in Vietnam.

YEO and NGUYEN will own 20% of the joint venture company's interests, and Giordano has 60% interest.

After completion, Giordano will inject $600 thousand into the joint venture company.

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< p > Giordano pointed out that Vietnam is an emerging market with great potential in the fashion retailing industry. The establishment of the joint venture will directly enter the Vietnamese market and facilitate the operation and control of the local retail market stores.

"The company believes that when entering the market earlier, it will use the most appropriate strategy and choose the best channel location to build a good brand image."

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< p > it is learnt that its joint venture YEO is a regional general manager of a href= "//www.sjfzxm.com/news/index_c.asp" > Giordano < /a > Southeast Asian market. It has rich experience in operation, while NGUYEN is Giordano's current franchisee in Vietnam, and is well aware of local market development and its regulations and regulations.

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< p > in the industry view, the act of setting up a joint venture can be seen as seeking growth in overseas markets.

With the increasing number of competitors, marketing costs, operating costs and production costs are rising. Giordano can not adjust the price situation, only to reduce costs or seek new markets to ensure the profits of enterprises.

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< p > Xiong Xiaokun, a researcher at CIC light industry, pointed out to reporters that although Vietnam's demand for clothing is not attractive compared with that of China, the competition in China's clothing market is fierce, and opening up the Vietnamese market will bring new achievements.

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< p > some people have pointed out to reporters that based on Vietnam's cost advantage in garment manufacturing, Giordano's follow-up can also be sold back to the Chinese market after the local production.

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"P > < strong > < /strong > < /p > in mainland China

Giordano, which has been popular for a while, has fallen a lot in recent years. < p >

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< p > the latest three quarterly report shows that Giordano global brand sales decreased by 1% to HK $1 billion 773 million.

Excluding the additional sales generated by last year's acquisition of Middle East business, Giordano's third quarter sales actually decreased by 4%.

In the third quarter, its same store sales, which reflect business performance, fell by 2%, a 5 consecutive quarterly decline.

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At present, Giordano has 1458 stores in the mainland market, and its brand sales in the mainland have declined for 7 consecutive quarters.

Last year, it closed 163 stores in the mainland.

In the three quarter of this year, it closed 7 stores again.

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< p > > aiming at the mainland market, < a href= "//www.sjfzxm.com/news/index_c.asp" > Giordano < /a >, it has actively implemented the brand relocation strategy, but so far the effect is not significant, and it is expected that these measures will be effective next year.

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< p > in addition, it indicates that the number of mainland stores is bottoming out and that the number of mainland stores has increased in the coming year.

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In the mainland, Giordano can be regarded as a brand of P.

Founded in 1980, founded by Hongkong businessman Li Zhiying, it specializes in the retail of low and medium casual wear, and is listed in Hongkong in June 1991.

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< p > "well done at that time, mainly because of the lack of brand positioning in the mainland, plus the brand image of Giordano is also better, the design is appropriate, the price is more close to the people."

Ye Qizheng, editor in chief of the tidal wave network, told reporters.

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< p > with the rise of < a href= "//www.sjfzxm.com/news/index_c.asp" > fast fashion < /a >, all kinds of Korean currents and European and American wind are gradually favored by consumers. Giordano's main T-shirts are no longer the only and primary choice for people.

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< p > Xiong Xiaokun said that the electricity supplier's strong invasion of the clothing field also seized Giordano's market share.

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< p > Ye Qizheng believes that Giordano has developed to a certain extent, the possibility of expansion is not large, and the latter performance will not be bad, but the profit rate will not be high.

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Cui Hongbo, founder and chief executive officer of Shanghai Zheng Jian brand management consultant Co., Ltd., told reporters earlier about whether Giordano could be acquired or its biggest bright spot for P.

"In addition to the original brand awareness and resources on the channel, Giordano has no competitive advantage, and it is difficult to make too much change in brand vitality. Earlier, the market has been rumored that ZARA's parent company wants to buy it."

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