It is reported that Menngle is the second largest clothing giant in Japan after Uniqlo, and its clothing sales can rank among the top ten in the world.
On October 5, its Wuxi store began a 50% off promotion in the final stage of clearance, with the lowest price for accessories, underwear and other categories of products being 5 yuan.
In terms of channels, from 2012 to now, Shimenngle only had 12 stores in its “peak” period. This year, Le’s revenue from various activities centered in Shanghai, China, was only 5 million yuan, a year-on-year drop of 54.6%.
Perhaps because there was little publicity, no celebrities were invited to advertise, and not enough stores were opened in China, the turnover was pitifully small, and this year’s sales were only from February to August. With only 5 million yuan, it is not even enough to cover operating costs, so it has no choice but to close down. Compared with the well-known Uniqlo, it is not at the same level.
Once upon a time, this Japanese company was so prosperous that it was once regarded as a strong opponent by Uniqlo.
Some consumers think that they are too lazy to buy it for 5 yuan.
First of all, its brand power is insufficient. In Japan, it is a super cheap clothing store for middle-aged and elderly people. However, it is so successful in China that Japanese brands cannot be trusted casually.
At the same time, the clothes in this store are at the level of street stalls, and the decorations are very messy. The same is true for stores in Japan. In addition to the eye-catching red name of the store, the decorations are really sale decorations. Some clothes The price discount is very attractive.
Finally, shimamura has thousands of stores in Japan, all of which are cheap fast-selling products that have nothing to do with fashion, and the product quality is far inferior to Uniqlo. In China, the brand of fashion synchronization is highly suspected of deceiving Chinese consumers. No wonder it cannot continue to operate.
A Japanese grocery store brand regards itself as a luxury product in China, but the 1.5 billion Chinese consumers are not stupid, they are obviously too proud. We don’t need paper that “associates with forests and dirt,” we need paper that associates with “weekends, holidays, golden weeks.”
Japanese clothing, represented by MUJI, has never actually risen. It has always only had a certain audience in first-tier cities in China. The prices of many products are not too expensive and can even be said to be affordable, and they do not follow trends or follow hot topics, which is a typical Japanese business route that goes its own way.
Take MUJI as an example, its position in China is in jeopardy.
After eleven consecutive price cuts, it still failed to reverse the decline. This kind of collapse is a bit bleak compared to the brand’s past glory.
Similarly, it will not be defeated so easily, but whether it can continue to develop is another question.
Muji’s transition from “hot” to “cool” is actually the epitome of foreign brands in China.
The main reason for the closure of the Shimamura brand is due to problems in its own operations. The impact of the new crown epidemic in 2020 is just the best excuse for Shimamura to find closure. Why is the Japanese brand Uniqlo so successful in the Chinese market? Shimamura should really reflect on this.
In the field of mobile phones, we have witnessed Samsung go from “rising high” to “collapsing”; in the field of retail, we have watched Carrefour and Lotte Mart go from great success to sad departure.
These ongoing business cases declare the official end of the era when foreign brands can make money in China. They also remind foreign companies that if they do not pay attention to and respect Chinese consumers, they will be eliminated from the Chinese market sooner or later. </p
