Baleno Closed Shop In 6, 3000 Mainland Plants Closed

Baleno is now facing the same situation as all clothing stores.

In recent years, influenced by the impact of the Internet and higher cost, Baleno stores have sharply reduced, while its parent company, Germany Yongjia group, said in its recent 2018 annual report that the income of German Yongjia garment business associates decreased by 57.6% to HK $313 million (equivalent to about 272 million yuan) in the reporting period, which should account for a net profit of HK $3 million (RMB 2 million 603 thousand and 300 yuan), down 62.5%.

Meanwhile, due to rising wage costs, the company has closed its factories in the mainland of China.

Statistics show that Baleno was born in 1981, Italy brand itself, and began operating in Hongkong in 80s.

In 1996, it was acquired by Hongkong's German wing Jia group and founded the Guang Zhou Friendship Baleno Company Limited, and then it was repackaged, and Baleno was reborn.

In the early days of Baleno, young men were the main players.

Clear positioning, high quality and low price products, as well as a unique "self run + franchising" mode of opening up, are flourish in the main business circles of the second tier cities.

According to statistics, as of May 2012, Baleno has reached an astonishing 4404 stores in the country, which can be described as five steps, one store and ten flagships.

However, due to the overstock of inventory, Baleno has closed 12 stores a month in 2011-2015 years. At present, according to Baleno's official website, there are only more than 1000 stores in the country and 3000 stores in 6.

According to the recent financial report of Germany's Yongjia, Baleno Kingdom Ltd and its Affiliated Companies revenue also declined year by year. In fiscal year 2016, it was about HK $4 billion 597 million. In fiscal year 2017, it was HK $4 billion 51 million. In fiscal year 2018, it was HK $3 billion 995 million.

Clothing industry experts, independent

In an interview with the Yangtze daily news, Shi Ma Gang said: "Baleno's fast fashion clothing brand is fiercely competitive in China, and a large number of brands are eliminated. On the one hand, the same price is low on the one hand. On the other hand, brand surplus and overproduction are also the main reasons.

After the elimination of fast fashion, there will be a new competition pattern.