Cheap Foreign Brands Beat Hongkong Market &Nbsp; &Nbsp; Hongkong Wang Pu Price Doubled.

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In September this year, Monki, a Swedish women's clothing brand, opened its first exclusive store outside Europe in Langfang shopping center, Hongkong, China.

In 2011, China's Hongkong will also usher in the Gap, Forever 21 and American Eagle of the American apparel brands.

These brands are costumes for the people and follow the trend. They can be discarded at random.

Foreign brands such as H&M, Zara, Mango and UNIQLO (Uniqlo) have already branched out in Hongkong, China.

The clothing brands that follow the mass line are not new things in Hongkong, China. The two brands of Giordano and Giordano were founded in the 80s of last century and are now listed companies.

The two brands are basically basic routes. There are dozens of stores in Hongkong and have expanded to Southeast Asia, Taiwan and Mainland China.

However, the influx of foreign fast fashion brands has brought pressure on Chinese brands in Hongkong. They have to re examine their market, pricing and expansion strategies.

Eddie Lau, director of Citibank regional consumer research, says these are two points for local brands in Hongkong. First, competition for retail property, especially in prime locations, will be more intense.

Second, they have to re-examine their business planning and brand capital.

Giordano's market value is HK $7 billion 250 million (US $934 million), which is not as good as Gap's 10%, American Eagle 's's 1/4.

In the scramble for stores, large foreign brands can open higher chips than local competitors and eventually raise the rental market.

In June of this year, Forever 21 announced that it would open the flagship store in Hongkong, Tongluowan. The 5 storeyed floor occupied by the flagship store was originally rented to Giordano.

The rent paid by Giordano was HK $5 million 500 thousand per month, and the rent of Forever 21 doubled to HK $11 million.

According to the data provided by Colliers International, the average rent of retail property in the four traditional shopping areas of Hongkong, Tsim Sha Tsui, Mong Kok, central and Tongluowan in the three quarter of 2010 increased by 2.7% over the two quarter.

High power international forecast that the next 12 months will have an increase of 10%.

Speaking of the change, Yu Weilin, director and director of Giordano affairs and foreign affairs, said they only thought that the level of such rent was not explained by economics.

Giordano is now looking for shops in a few relatively remote streets in Tongluowan.

Giordano and burglung are gradually shifting their focus from mainland China to the mainland. Under the auspicious situation of retail sales this year, the profits of both companies have improved and profits in the mainland are far higher than those in Hongkong.

In the past 3 years, Giordano has closed 30 stores in Hongkong, China, and has opened 341 new stores in the mainland.

In the first half of 2010, Giordano's sales in the mainland increased by 15.7% over the same period last year, representing 37% of the total sales so far this year.

Sales in Hongkong stood at only 18% of total sales.

Its competitor, burshlung, has opened 182 new stores in the mainland in the past three years.

Today, some local brands in Hongkong also have a more fashionable product mix.

Yu Weilin said: "I do not think that H&M and Forever 21 brands are Giordano's direct competitors, because we are not as fashionable and fashionable as they are."

However, he also said that Giordano is pushing out the fashionable BSX, whose target audience is mainly young women, which is about 20% higher than that of Giordano's mainline products.

G2000 is the main brand of the main office clothing. Its 2010 autumn dress series presents a more fashionable look, tailored and more fashionable, and styles and accessories are more fashionable.

Eddie Lau said that other brands were marginalized and forced to price competition as a means of competition, leading to the subdivision of their target segments from middle-income groups to low-income groups.

He said that the fashion industry has always had high risks.

Local clothing brands in Hongkong, China must learn how to deal with such risks.