With the booming development of e-commerce platforms, the real economy has suffered a huge impact, and the development of the industry is sluggish. Many popular first-line brands have gone into decline, with sales shrinking, stores closing in large numbers, and even disappearing from people’s sight completely. For example, the business scale of fashion brand La Chapelle and women’s shoes Daphne is no longer the same as it was back then.
Even Baleno, the clothing brand that was popular across the country, is now in danger. It only took 6 years for 3,000 stores to be closed. Today, Baleno has become synonymous with cheap clothing.
Baleno’s business was very prosperous in the past. I believe that young people born in the 1980s and 1990s still have a very deep impression of this brand, but now this brand has become unpopular. The brand has a history of 38 years since its birth. After its establishment in the early 1980s, the brand began to focus on casual wear. Many big stars have been spokespersons for this brand.
But now, Baleno is rarely seen in the business districts of many big cities. However, in 2012, when the brand was at its peak, the number of stores exceeded 4,000. However, this year was also the peak of Baleno’s development, and it has started to decline since then.
By 2015, the brand’s sales had problems and had been stagnant for a long time. Although there was a slight improvement later, it is still on a downward trend overall, and this trend has not changed for a long time. Up to now, Baleno has only more than a thousand stores left in the country, which means that more than 3,000 stores have been closed with the brand in the past six years.
The speed with which the brand’s stores closed surprised many. Baleno’s original name was “Binnu” and it was one of the earliest foreign clothing brands to appear in the Chinese market. At that time, it won the unanimous favor of young people in our country, who regarded it as a symbol of success. In order to deepen the impression of Chinese consumers, the company registered the new Chinese trademark Baleno.
Later, in 1996, Hong Kong Deyongjia Group acquired Baleno and repackaged the brand. Give it new development vitality. At that time, the domestic casual clothing field was basically blank and there was not much competition. At this time, Baleno seized the opportunity to develop fully and invited many first-line celebrities to endorse the brand to expand the brand’s popularity. At that time, an ordinary T-shirt of this clothing company even sold for 200 yuan.
With the continuous development of the brand, the number of stores soon exceeded 600. Even the popular Giordano cannot compare with Baleno. Then the company started a leap in development, and the number of stores soon exceeded 4,000 in the country. Baleno stores have appeared in all major cities. Within the industry, Baleno has also ranked first in sales for 12 consecutive years and has become the target of other peers to look up to.
The main reason why the brand has achieved such success in China lies in the quality of its products. Hong Kong Deyongjia Group was originally a retail textile company, so it has rich experience and advanced technical conditions in all aspects, which has allowed the quality of Baleno to skyrocket and the cost to continue to decrease. In addition, their target customer group is people aged 18 to 40, and their business scope is mainly casual clothing.
Another reason for the rise of Baleno is that there was not much competition in this field in China at that time. Coupled with the outstanding business model adopted by this company, it was able to quickly occupy a huge market share and attract the attention of consumers.
But later, various brands entered the Chinese market to compete. These are international fast fashion brands with strong competitive advantages. At the same time, my country’s local brands are also rising strongly. The entry of many brands into this industry has resulted in fierce competition, eroding Baleno’s market share and making its development increasingly difficult.
The main reason is that the development method adopted by Baleno at that time is no longer suitable for the current competitive environment. In addition, because there were not many competitors at the beginning, their business development was too smooth, so they did not have a sense of worry for a long time and consolidated their own development. As a result, many disadvantages have arisen in the long run. For example, problems such as the aging of a single brand in its business methods have plagued this brand. However, other brands are far better than Baleno in this regard. In addition, with the rise of e-commerce and the rapid development of e-commerce, Baleno’s development is not as good as one year. Now Baleno can only adopt Low-price model to barely maintain.
If people pay attention, they will often find that Baleno stores will hang billboards at the door during holidays and major festivals, with the word “Discount” written on them.
However, Baleno’s styles are single and there is no innovation, so even if the price is cheap, consumers are not willing to pay for it. Baleno is mainly bought by some middle-aged and elderly consumer groups who pay more attention to price, and this brand has now become synonymous with cheap clothing.