Versace Closed All Stores In Japan, Claiming That The China Region Won’t Be Affected
After the resignation of its global CEO in June, the world’s leading luxury fashion brand Versace has recently announced the closure of all stores in Japan. Daily Economic News has learned from the China agent of Versace that the agent has received no news concerning the closure of stores in China from the headquarters yet. In the face of the strong growth of the Chinese luxury market and other brands’ expansion in China, Versace is very likely to expand in China.
versace-replicaestore.com
The Last Three Stores Closed In Japan
As reported by foreign media, Versace announced on October 7 that the company had closed all the boutique stores in Japan, which were their last three retail stores in Japan. Versace thought that ‘they could no longer stand for the brand image of Versace’. This action is part of a company strategy rectification plan that covers a much wider range of Versace.
Besides, Versace also disclosed that they were currently looking for ‘new position and more suitable marketing channel’ in Japan, however, the statement did not mention about when the stores would open again.
Analysts point out that under the financial crisis, smaller fashion companies like Versace are facing market pressures that their values have to be re-evaluated, as their financial strength and scale is not comparable with those of larger competitors.
Public information shows that Versace is the world’s leading international fashion house, and their lines are mainly men’s and women’s wear and perfume. Founded by the famous talented design Jenny Versace in 1979, the brand has now spread all through the world and has more than ten exclusive stores in China.
Likely To Expand In China
Will the closure in Japan spread to China? There are indications that Versace is likely to expand in China instead.
Reporter of Daily Economic News has phoned Noble Department Store Co., Ltd. of Wenzhou, one of Versace’s Chinese agents, and the Head of Sales of this agent told the reporter that they had so far received no news from Versace about whether to close the stores in China. Meanwhile, the Versace exclusive store in Shenzhen Mixc also said that the financial crisis had little impact on the sales performance of Versace, which was very normal, and the store was operating as usual.
On the other hand, well-know consultant firm Bain & Company has recently released a report predicting a 10% decline of the sales volume in the Japanese market, and a 7% growth in the Chinese market because the number of wealthy people in China is on the raise. A survey from Goldman Sachs also forecasts that the sales growth of luxury goods in China will top the world this year.
An insider expressed that the shrink of foreign markets and the growth of Chinese market had no doubt brought luxury goods giants room for expansion.
In fact, in as early as the dawn of the financial downturn, world-renowned luxury brands like Versace, Hermes and Louis Vuitton already showed signs of expansion in the Chinese market.
Last September, Patrick Albaladejo, Deputy Executive President of Hermes Group once said the group planned to open three to four exclusive stores in China every year for the coming three years in order to meet the needs of the ever growing group of wealth people. Giancarlo di Risio, former CEO of Versace has publicly announced at the end of last year that Versace had decided to focus their investment and development on the Asian markets, especially the Chinese market. And recently, Christopher Zanardi-Landi, LVMH Group’s CEO China Region said he was full of confidence in China’s luxury goods market in 2009.
On seeing the growing Chinese market, strong luxury goods brands begin to invest in China actively. Take Shenzhen for example, the largest flagship store in the Asia Pacific region of Gucci is unveiled in March, when Louis Vuitton’s largest flagship store in Asia is opened in June and the first store of Hermes in Shenzhen started business in September.
trackback:http://blog.handbagsoutlet.biz/index.php/2009/10/versace-closed-all-stores-in-japan-claiming-that-the-china-region-won%E2%80%99t-be-affected/ handbags outlet