With the gradual development of China's economy, Giordano, which had "peaked" in first-tier cities, has started to plunge into the prefecture-level cities. They believe there may be Beijing and Shanghai 10 years ago. "Do not hesitate, hung up the phone to go spread out the map (to join the site)." This remark from the head of Zoanlan Huaxi District Mr. Zhao mouth, and the other end of the phone, is intended to join the north of Giordano market Ms. Zhang . Mr. Zhao told Ms. Zhang on the phone that there is not much room for development in the northern cities and hopes that she can join the new market of Giordano where she is responsible - Chongqing, Sichuan and Hubei in Huaxi District. Huaxi District is the new district approved by the headquarters of Giordano Hong Kong in the second half of 2008. According to the plan of the headquarters, this area is the key area for the recent development. According to insiders, the Group plans to focus on the expansion of nearly 300 new stores in Giordano in the next two years. So, these uncertainties in the market, "Virgin Land", what to attract Miss Zhang to join it? The answer is policy concessions. "If you look at a single store of about 100 square meters, not rent, only 600,000 yuan can join. Including first-hand payment, pre-investment, shelves, etc." In order to better develop the market, the headquarters can Provide shop design, system construction, staff training and other basic work. However, even so, 600,000 yuan is still a "water" number. In order to get Ms. Zhang to join in time, Mr. Zhao said: "600,000 yuan is only a budget estimate, the actual operation does not need so much." Focus on China In 2008, Giordano had to shut down two stores in Singapore, South Korea is 6, China Hong Kong reduced by 10, Taiwan reduced by 18. In stark contrast, Giordano added 89 new stores in mainland China in 2008. Of course, sales in mainland China also increased by 25.2%. In the context of the financial crisis, mainland China seems to be the "life-saving straw" for Giordano's growth. For Ms. Zhang want to join, now there is a better news: According to Giordano headquarters sources, from August 1, 2009 onwards, Giordano get the lowest discount of up to 5.5 fold. Before 2006, Giordano had more than 1,600 stores in 31 major countries and regions around the world. On the one hand, this is the desire for growth. On the other hand, it is aimed at reducing the dependence on Hong Kong's local market, which has experienced a slowdown in economic growth since 1998, and Giordano had to turn its eyes overseas. The financial crisis intensified Giordano's overseas market by varying degrees. The impact on business in Indonesia and Thailand was particularly pronounced, with the former dragged down by falling commodity prices and devaluation of the Indonesian rupiah, while the latter faced long-term political crisis that seriously affected the tourism industry with its economic lifeline. However, South Korea suffered a setback in consumer confidence as a result of the fall in the won, resulting in the first half of the year when its earnings were offset by the second half of the year. Turnover for the full year was down 15%. Faced with a series of overseas market strikes, Giordano rapidly implemented a comprehensive cost control program. It not only implemented freeze payroll and suspension of recruitment policies in markets other than mainland China, but also cut the number of outlets that failed to make any profit due to high rental and store expenses, including China Hong Kong, Taiwan and Singapore 30 shops. "Freezes and suspension of recruitment policy this year has been withdrawn." The reporter confirmed from the Giordano Shenzhen Branch, overseas markets have returned to normal. However, according to the first quarter 2009 results, Giordano's market outside mainland China remained "weak" while Hong Kong, Taiwan and Singapore both recorded double-digit declines in turnover in the first quarter of 2009, with Hong Kong, China decreasing 10.9% , A decrease of 15.7% in Taiwan and a decrease of 24.5% in Singapore; the number of stores in Taiwan, Singapore and Japan also decreased to varying degrees. In contrast, in Mainland China, this did not panic to Giordano's management despite a 4.3% drop in turnover over the same period. "Although the current market growth in Mainland China is slowing down, the upward trend continues. In the first three days of the May 1st holiday in 2009, the mainland market enjoyed a growth of more than a dozen." Chairman and CEO of Giordano, Liu Guoquan, said , Although the first quarter fell, but Giordano is still optimistic about the Chinese mainland market. "To be honest, Giordano has been very 'disappointing' in the Chinese market. No one has advanced too early, nor has anyone expanded too fast." One employee at Giordano's headquarters told reporters that while Giordano performed well in the mainland China market, Compared with other competitors, has always been "stable" known Giordano, shop opened much slower rate. From the recent four years of storefront situation, 35 in 2005, 23 in 2006, 91 in 2007, 89 in 2008, Giordano added a total of 238 stores within four years; and Baleno in 2008 added a year The number of stores has reached 351. "However, in the market, the economy is changing under the status quo, better." The staff said Giordano has done a good job by the "troubled times" to be a "hero" to prepare, "not a direct store, only the franchise Join this year will be able to achieve three figures. "Giordano public relations official said that the next two years the number of new stores is expected to close to 300. Emphasize, the county market has seen the movie "crazy stone" people, I believe we must remember the phrase classic "brand ah, Baleno." A ridicule opened the Bane Road scars, the former represents the fashion and fashion brand, has now become synonymous with inexpensive. At least in the first-tier cities, the brand awareness crisis of Baleno has been revealed. Giordano is facing the same embarrassment. In Beijing, Tianjin and other places, a few years ago a few junctions will be able to see a Giordano store scene no longer exists. Street stores less and less, most of its counters "shrink" in various forms of stores within a certain area, or even a corner. Although Giordano has made great efforts in the brand in recent years and has segmented the high-end brands such as Giordano Ladies, Giordano has apparently lagged behind the spending power of the big city residents in its "mid-price market" as its main consumer group. It is noteworthy that even today, Giordano for joining the new store or open only casual series of brands, for its high-end brands, only direct sales stores. In other words, the new franchise stores are still in the low-end Giordano slack route, which obviously can not meet the needs of consumers in first-tier cities. However, for some, county-level consumers, Giordano is still a "premium brand" that embodies fashion and identity, a consumer whose pursuit of style and affordability is not too high. "We will continue to devote resources to the development of the mainland China market, especially with the second-tier cities below where the Giordano brand is not yet known." In the view of Liu Guoquan, the mainland China market is the key point and the prefecture-level cities are the key points "At the same time, rents have gradually dropped to a more reasonable level as the battle for gold retail locations in the major metropolitan centers begins to slow down. We are also carefully assessing the relocation of existing stores to more favorable locations Possibilities. "Obviously, Giordano has found this" more favorable segment. " "Now the situation is that South China has been saturated, the northern region has matured, but Huaxi District, the market gap is relatively large." Giordano Shenzhen Branch Development Department stakeholders admitted to Sichuan, Hubei and other places of prefecture-level cities and counties Huaxi District, represented by the city, is a key development area for Giordano this year. "And there are key cities like Chengdu, Chongqing and Wuhan that have stronger spending power and can drive the consumption in neighboring cities." According to Mr. Zhao, head of Giordano West China, most of West China, including Xinjiang and Gansu, Regions, have greater room for development. However, a real problem in front of Giordano is that although the target is clear, whether it can gain a firm foothold in these prefectural and municipal markets is still a matter of great doubt. After all, the expansion ideas of several major competitors are basically in this way. From the situation in 2008, Baleno increased the number of stores in Mainland China by 351 and reduced it by 53 in other parts of Asia. It also listed China as its development focus. Bossini is also consolidating its core market in China and plans to add 109 stores this year. From this perspective, the expansion of the prefectural and county markets is nothing more than the transfer and extension of a battlefield. And Giordano in this new "campaign" in the "fight" for a while, still need time to test.