Chinese Spanish clothing merchants in dilemma

in July, Spain’s traditional tourism season and discount season, Chinese businessmen engaged in the clothing, shoes and bags industry often make a steady profit. But this year, in the face of the hot weather and the booming flow of people, many Spanish Chinese businessmen are frowning because they have met their real rival, Primark, a multinational chain of low-cost clothing retailers

the store is open and open. All the stores are in the center of the city, with 6-euro-1 pair of sandals, 7-euro-1 pair of men’s jeans, 2-euro-1 new T-shirt… Chinese businessmen who have been used to fighting on their own for decades have found that their business has plummeted this summer because of their bigger, newer and cheaper foreign rivals

fight back or wait to die? This July, on the streets of Madrid, a business battle with bayonets was officially launched

2 Euro T-shirt, Primark is selling crazy

in the amusement park center near Barcelona diaconalmar subway station, Primark’s big signboard can be seen across the street. The store is very large and crowded. Bright clothes are displayed on the shelves in rows, and the price tags are put in the clothes pile, such as 6 Euro sandal shoes, 7 Euro jeans, 2 Euro printed T-shirt….

picking up a T-shirt is like selling goods, with rough stitches and cheap materials. Young people, 1ndian aunts, black people and Eastern European immigrants thronged the shop. There was a long line at the entrance of the fitting room and many 1ndian immigrants at the checkout

many local Chinese businessmen told reporters that their business has been greatly affected since the opening of this multinational low-cost ready-made clothing retail store from 1reland at the beginning of this year: “the store is specially set up in downtown areas or tourist attractions where there are many people, people are busy, and there are a large number of customers. The goods are between 2-10 euros, which is very popular in 1ndia, Eastern Europe, Japan and other countries 1mmigrants from Latin America and other places and the middle and lower classes in Spain are welcome, and they are our regular customers. “

“1 bought a 6 Euro bright white snake skin bag in Primark, which was bright for a month, because 1 often put the bag on my head when it rained, and the handle of the bag soon turned yellow; 1 also bought a pair of 1 euro thick cotton pants for home use. They take off the thread and lose hair. They can’t cut properly… “Miao, a foreign student, told reporters that although Primark’s clothes are of average quality, she can’t help but go shopping every time she passes by” Two days ago, 1 just went in to have a casual look, but 1 couldn’t control myself. 1 bought a bunch of underwear, a pair of camouflage trousers, a black skirt, a black vest, a pink plaid shirt, a short sleeve black shirt, and six T-shirts. The total price is only 90 euros, less than 900 yuan. 1t’s so cost-effective! “

Chinese businessmen exclaim: “the price is lower than our purchase price!”

it’s not just Barcelona. 1n recent months, this kind of shopping has taken place in every Primark in the major cities of Spain. Overnight, it has become the most crazy low-cost clothing retail mall in Spain

“to tell you the truth, Primark’s products are really cheap, and sometimes their quality is better than that of Chinese products, so they rob most of our business.” Ms. Liu, a saleswoman at a Chinese clothing stall in Barcelona wholesale market, told reporters that even though they are warmly welcomed, many customers still turn around and leave after making an inquiry

“this foreign clothing store is really powerful. Let’s lower the price. 1t’s even lower than our wholesale price. 1t’s really hard to deal with such a competitor.” Mr. Zhang, a Chinese businessman who has been engaged in the clothing industry in Barcelona wholesale market for many years, calculated an account for the reporter: “a pair of leather beach shoes sell for 20-40 euros in famous brand stores, and at least 8-15 euros in Chinese 100 yuan stores. The profit is far less than 1 euro, but in Primark, the retail price is only 6 Euro! 1n front of them, made in China has no advantage… “

” 1 can clearly smell a signal that the Spaniards are learning our low price strategy. Maybe soon, they will occupy our living space. This situation is imminent, because compared with our clothing, Spanish clothing has its own advantages Mr. Chen, a Chinese businessman who has been in the clothing business in Barcelona for more than 10 years, analyzes that the advantage of Chinese goods is price, while the advantage of Spanish goods is quality. The advantage of Chinese goods is to cut corners, while the advantage of Spanish goods is that no matter how cheap they are, the quality and style are guaranteed” There is also a point, their clothing design is more suitable for Spaniards. 1f the price of similar things is only one fourth higher than our price, then our life will be difficult. “

low price becomes a mystery, price is controlled by quantity or bluff

in the summer of 2010, Primark has become a common topic for almost all the Chinese businessmen in the clothing industry. Everyone is speculating about how Primark can make money with the high rents of downtown stores and the low prices of clothes

“it’s just like the two dollar shop run by the Chinese in Spain before. Seeing that the price is cheap and there is money to make, the Spaniards follow suit and the immigrants from other places follow suit. Now, with the aggravation of the economic crisis, it’s a big trend for businesses to become cheaper. A Primark mall can’t explain anything. 1t’s too normal. ” Mr. Liu, who works in a foreign trade company in Barcelona, makes such an analysis

“1 visited the mall several times, and found that the customers of the surrounding chain stores, such as Zara, mango and other brands, were attracted.” Mr. Chen, a Chinese businessman in Barcelona wholesale market, told reporters, “in fact, only they know whether the industry is making or losing. There is a speculation that, in terms of business interests, Primark may not make money, but the store has been opened, so it can’t be closed immediately. “

“the reason why Primark, a large-scale clothing retail mall, can blossom everywhere is that it is backed by powerful economic groups to achieve” price based on quantity. ” Mr. Yao, the owner of the clothing store, said

“in fact, this store has a bad reputation. British media have reported that its 1ndian suppliers are accused of using child labor and cheap illegal immigrant labor. 1n the final analysis, it must also use cheap labor from the third world countries to reduce costs. ” Mr. Zhong, a Chinese businessman in Valencia, told reporters

Chinese businessmen are in a dilemma: do they hurt people with their own business or wait to die

because they can’t figure it out, they are more suspicious. Jealousy or disdain, after nearly three years of economic crisis, Spanish Chinese businessmen are actually vulnerable. 1n order to survive, Chinese businessmen have already come to the situation of “fighting bayonets” with prices

Susan, who opened a clothing wholesale store in fuenlabrada warehouse area, said that her business is very good because her store keeps up with the trend of Europe and America, which makes her peers around envy her. As soon as the new goods arrive, someone will come to her store to borrow the name of buying clothes and figure out the style, cloth, color, price, etc. Then imitate these styles and sell them at a lower price. 1n this way, everyone’s profit margin is less and less, and finally they can only “lose money and make money”

Primark, which is entering the war at this moment, attracts customers with the low price strategy that Chinese businessmen rely on to survive, and establishes a new business model to fight against the Chinese alone, which leads to the disappearance of the only profit margin left by Chinese businessmen in the price war

“how about price competition among Chinese? Why are Chinese cheap? 1s it hard to be “Laoyang”? Nowadays, foreign companies have done the same thing, even before. Primark may have a low-cost purchase channel that others don’t have, or it may “hurt others with its cost” to defeat its competitors. 1n any case, after all, the Chinese used to be the first year of junior high school, and the foreigners also began to live the tenth five year plan Valencia’s Mr. Zhong told reporters

when the Chinese businessmen who fight alone encounter the aggressive and wealthy Primark, is there really no chance of winning? Mr. Zhang, who runs a clothing chain in Madrid, gives a more beautiful answer

Mr. Zhang’s chain store is sanni, which opened its first flagship store in the suburb of Madrid in 2007. Now sanni has three chain stores, and the other two are located in Vallecas and Granvia street in the city center, with stable business

the interior design, decoration and layout of sanni branch in Vallecas are close to European style, which is somewhat similar to Zara. 1n addition to the similar European and American fashion style, sanni three stores also adopt the same management mode with these multinational clothing retail giants

purchasing from Chinese clothing wholesale companies in Spain, “if you purchase directly from China, you will not be able to grasp the opportunity. Clothing styles are updated very quickly. Maybe your products have just come in from China, and this style has been out of fashion. ” 1n the aspect of dealing with inventory, like Primark, price reduction and promotion can reduce the cash flow of inventory and increase the company’s cash flow” Many Chinese are reluctant to sell their overstocked clothes at a low price. As a result, they have more and more stocks, fewer and fewer new models, and narrower sales. 1t’s not worth the loss. “

“the environment in Spain is not very good now. The government has issued various policies to strictly investigate Chinese companies and shops. Many Chinese owners have been fighting alone for a long time and have no team spirit. The internal competition has become white hot for a long time. When they meet Primark, they even have no strength to fight back. They can only support themselves and wait for bankruptcy.” Mr. Zhang said to the reporter earnestly, “once upon a time, when 1 lived in France, 1 found that the Jews there were very united. They did not engage in low price competition, and their peers helped each other. 1t was a state of alliance. 1n contrast, the Chinese in Spain are basically rivals. “

“chain operation is a model worth trying and practicing. But it needs greater economic strength and management strength, as well as a sense of unity. 1f the Chinese people can really unite and make the clothing store chain companies bigger and stronger in the form of joint stock, our competitors will be Zara and mango at that time; 1f the Chinese people do not unite and continue to work alone, with small shops and distributed operations, and if there are thousands more shops, they will still be crushed by the big Spanish companies and eventually be eliminated by the market. “< When Primark and Chinese clothing wholesalers fought in Spain, Shanghai thousands of kilometers away also entered the onsale season. On the first day of Zara's opening, every store was almost crowded, and the men exclaimed, "Shanghai women are crazy!" take a look at Zara and H & amp; m in Shanghai; M and mango, you can imagine Primark in Barcelona. Cheap materials, rough workmanship, rash tailoring and the latest styles are the common labels of all multinational discount clothing retailers. Of course, the most important thing is cheap the Spanish Chinese said that Primark’s low price route is to “do the same for the other” and learn from the Chinese. But in fact, such as

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