ARRITS Women's 2016 China Buyers Shop Tour

ARRITS Women's 2016 China Buyers Shop Tour

For China's buying shop, the moment is a good time. However, with the entry of well-known integrated stores abroad, the involvement of large capital, and the transformation of traditional brand agents, the industry is bound to iteratively update. The buyers of the shopkeepers who are in charge of how people view the timing and risks of coexistence, and how to understand What is the development of China's independent designer market?

"Yunyijian" is hereby opening the depth of special topics of the buyers' shop, visiting one of the most unique and influential domestic brands and dedicated to promoting local designer brands.

The Fifth Station Nanchang

ARRITS

“For us, opening a buyer’s shop is not a blind pursuit. We are very aware that customers are upgrading and spending power is improving, but the original market is lacking.”

Founder: Zhan Ping

Established: 2015

Address: 1st Floor, Shimao Plaza, 1996, Honggu Middle Road, Honggutan New District, Nanchang

ARRITS is one of the typical representatives of independent dealers of branded integrated shops in the transformation of traditional agencies. In 2002, Zhan Ping began acting as an "exception" agent in Nanchang. Two years later he again won the "ZUCZUG / Susan" local agency. At that time, China's women's wear industry was almost the world of brothers and other traditional commercial brands, and consumers could not understand the products with strong sense of design. Zhan Ping recalled, “The new shop decoration uses elements of mosaics and water pipes. Everybody can't read it and say like a bathhouse. We often have no sales for a week. 'ZUCZUG/ Susan' is the first one that a friend purchased. After working at Shin Kong Mitsukoshi in Taiwan, I could see the development potential of this brand."

The turning point begins with entering Pacific Department Store. Exceptions, ZUCZUG/Paper, OTT, Deshi... As Zhan Ping gets more and more agent brands, he gradually creates the scale effect of this category in the mall, which is enough to attract the attention of customers. In 2007, thanks to the rapid development of China's economy, especially the prosperity of the real estate industry, a large number of new wealth was born, and they drove the market's spending power. From the “exceptional” cotton and linen products to the “ZUCZUG/Paper” fresh sense of design, consumers begin to accept these differentiated brands, and the newly-increased economic strength is enough to support consumption.

In recent years, Zhan Ping began to feel the new replacement of consumer groups. After 80 and 90 generations of consumer loyalty, the young customer groups have a strong desire for new things and their demands for a diversified market are growing. “We can understand consumer demand. There is a demand in the market, and we provide corresponding products. For us, opening a buyer’s shop is not a blind pursuit. We are very clear that customers are upgrading and spending power is increasing, but There is a lack of market.” In order to make up for this deficiency, on September 6, 2014, ARRITS opened its doors.

"Buyers need to help designers solve the problem of sales. If sales cannot grow, both parties will face a development bottleneck."

Market opportunities and risks often coexist. At this stage, integrated stores that run independent designer brands have to face the high-cost, low-profit, edgy reality. “For example, a designer brand is very high in order this year, which poses a great risk to the buyer's shop. At the same time, the brand's customers are rapidly losing. One is that quality assurance is still insufficient, and the other is the style. Changes do not achieve the desired results. What's more important is that consumers have a lot of brands to choose from."

Designer brands are facing increasingly fierce competition, and more and more independent designers are pouring into this industry. At the same time, some traditional commercial brands have begun to focus on design and seek transformation. They can reduce costs through economies of scale and are very competitive in price. This puts high demands on the designer's uniqueness in brand style, quality assurance, and reasonable price. Designers who cannot guarantee these aspects will not be able to maintain their brand for a long time.

According to Zhan Ping, the middle class will be the backbone of the future consumer market, but their rational consumption concept will choose relatively rational products. “We are a traditional business person and know the cost relationship. Where are the cost-effectiveness of designer brands? What are the competitive advantages? Buyers need to help designers solve sales problems. If sales cannot improve, both parties will face development. bottleneck."

Since its inception, Zhan Ping and his team have been looking for ways to cooperate with a designer brand and a profit model. At one point they tried to expand the category and increase the artistic products, but they did not succeed. “The public can't really understand the value of artwork. After making this small attempt, we decided to return to the apparel product itself and do a good job of service, such as explaining the product and working hard in the education market.” Zhan Ping said.

In May of this year, ARRITS teamed up with VEGAZAISHI WANG to make a press conference for the brand's 15 autumn/winter collection. Vega visited the store and made a brand review. For a three-day press conference, the pre-sale effect exceeded the expectations of both parties. "Transferring the order model to consumers will, in turn, reduce the risk of buying a store, and secondly, it will be able to interact with VIP customers. Next year we will promote a pre-sale conference for designers." The premise is to have a strong local VIP customer base, and this advantage is exactly what he has accumulated as a traditional agent for many years.

Products jointly developed by ARRITS and VEGA ZAISHI WANG

"The reason why ARRRITS builds a joint platform is to transfer stocks to each other, to make quick turnovers and to allow goods to circulate."

Inventory is a topic that buyers can't go around. In the traditional business for many years, Zhan Ping is very sensitive to the control of inventory. “There is a clear bottleneck for single-region and single-store business designer brands because the capacity of a city is limited. Once there is commercial climate instability, Inventories appeared.” Zhan Ping planned to set up a joint platform across provinces to transfer stocks to each other, to make quick turnovers, to allow goods to circulate, and ultimately to achieve common profitability. "Combining and ordering large quantities can reduce costs, increase gross margins, increase market competitiveness, and thus promote sales. This will be a virtuous circle." At present, the stores in Changsha and Xinjiang jointly with ARRITS are in preparation.

In addition, ARRITS also tried to use traditional commercial channels to attract new customers. In mid-November, ARITIS officially opened its nomadic shop in Nanchang Fortune Plaza. In recent years, traditional department stores have suffered from the changes in the consumption habits of the younger generation, the rise of e-commerce, and the homogenization of commercial real estate. They have sought to differentiate their products, which provides a new development platform for buyers. “Traditional department stores have great potential for consumption, and cooperation with them will help expand the source of customers.” But unlike cities such as Beijing, Shanghai, Guangzhou and Shenzhen, Nanchang has fewer foreign tourists and a relatively constant market capacity. Such external conditions make Zhanping’s plans Nomad shop to expand to the country. He disclosed that ARRITS is currently negotiating a nomadic shop project in Sanya from December to January. “The next 2 months is the time when Sanya’s tourist population is the most prosperous. The premise of our cooperation with Sanya’s shopping malls is localization. The local team is responsible for performing the implementation. More importantly, we can organize their VIP clients. We are responsible for Provide goods, and finally share the benefits. At the same time, promote the designers who are willing to cooperate to new areas."

ARRITS Nomadic Shop in Nanchang Fortune Plaza

There is no doubt that the market potential of designer brands is great, but at this stage, everyone is still in the process of exploration. Traditional brands have strong financial strength and can help dealers survive economic downturns by recovering inventory and reducing search indicators. In contrast, the designer brand does not have such a capability, which makes the buyer's store take more pressure. For the buyer's store, survival always needs to be placed first.

"The current market situation forces us to rely on our own strength to find new ways to break through the bottleneck and continuously resolve emerging difficulties, but we are always optimistic about the future of this industry."