in the ” split gate ” , ” burning bridges “, etc. under public pressurewomens evening dresses , the agents yelled “survival crisis ” of the move did not make a change of heart leading brands luxury brands .
Choose another luxury brand in China started large-scale Direct mode . July 17 , Britain’s largest luxury goods retailer Burberry Group (Burberry, hereinafter referred to as ” Burberry ” ) announces that the acquisition will be 70 million pounds of its franchise partners, Kwok Hang Holdings in Mainland China region Burberry Lite of franchise stores .
Currently, Burberry has 30 cities in the Mainland and 50 franchise stores evening dress. According to its 2010-2011 fiscal year plan , Burberry to open in fiscal year 10 new stores , all for the Direct .
Before in Burberry , Ermenegildo Zegna (Ermenegildo Zegna), Mont Blanc (Montblanc), Laofuluolun (Ralph Lauren) and many international brands have come on line in the Chinese market to recover the agency , turned to Direct mode .
In the ” split gate ” , ” burning bridges “, etc. under public pressure formal dress, the agents yelled “survival crisis ” of the move did not make a change of heart leading brands luxury brands .
” Burberry and others who do not wish to share the profits of the . ” 19, a luxury agent said . Last year, his agent before the transition , another international brand Direct .
Peace broke up
Kwok Hang Holdings Brand Hong Kong experienced agents, the goods covered by its agentsJewelry、Watches、ApparelAnd many other commodities .
Burberry chief financial officer Stacey Cartwright said on the phone , this is not an easy negotiation , the two sides took a long time to find a consensus formal evening dress. As the shop and the brand originally from Kwok Hang Holdings and each Burberry of all , the shop is the focus of the negotiations .
Under the new agreement , Burberry will invest 70 million pounds in cash Kwok Hang Holdings 50 stores in the Mainland and 85% of the shares of the company party dresses for women. All transactions will be expected to be completed in the fall . In the future, Burberry store will be fully responsible for operation and management of the Mainland .
” shop next step up efforts to accelerate the development of online shopping market . Now the Chinese market is a golden opportunity for further development girls party dress. ” Burberry chief executive Ahrendts this interpretation Burberry ‘s future in the Chinese market .
Direct Time
China’s luxury market worldwide rising enthusiasm and expectations.
This year in May , the Chinese Academy of Social Sciences said that in the next five years, China ‘s luxury market will be worth 14.6 billion U.S. dollars party dresses for girls, ranking first in the world . Boston Consulting estimated 5 to 7 years , China will account for the global luxury goods market share of 29%.
Dealers said an international brand . Spending power of this market is constantly released on the market thoroughly brand has come to an end, which is why so many brand to kick off the reasons agents .
At present, the former relying on agents to open up channels of Ermenegildo Zegna , Armani , Laofuluolun , Mont Blanc , Tommy Hilfiger and other brands have begun Direct . Among these, Mont Blanc and its agents Guorui letter ” break up ” is particularly unpleasant ladies party dresses, since both sides dispute the claim unsuccessful complaints .
Luxury brands often will first seek agents clear the way for recovery in the market after forming agent franchise . Israeli-Palestinian Polly , its Indian market is actively seeking partners to franchise or joint venture development of the market approach party dress, which is the reason of Burberry ‘s practice first came to the Chinese market .
If the agent’s sales channels too strong , the brands will gradually lose control , has led to many gray areas. Therefore, a luxury brand in any Forum , each brand are concerned about the control agents.
” The other reason is that the profits , “the dealer said the brand , “Brand and agents are proportional share of profits , since it has been free to open up the market , why the soup bowl and then distributed to others It? ”
As of December 2009 ,2009 -2010 fiscal year Kwok Hang Holdings franchise stores in Mainland China was 75 million pounds of revenue , profit for the 14 million pounds . Cartwright did not disclose the profit sharing ratio , and she only emphasized in China each year, with double-digit profit growth .