How Did Messi'S Department Store Go Downhill?

Double eleven has gone through the wind and fire. Have you received all the goods you have bought? It is estimated that people in mind have noticed that in the "Tmall international" conference, there is a prominent position in rolling advertisements for Macy's Messi department store. This is the first time it has been stationed in Tmall platform and has participated in double eleven promotion activities.

This year's Messi department store did not go smoothly, but it appeared many times.

In the eyes, is this the rhythm to save the decline in the Chinese market?

It has not been very good in recent years.

According to the Wall Street journal, Messi's revenue fell by 5.2% in the third quarter of this year. Actually, sales have been declining since the fourth quarter of last year. The company also lowered its business objective this year.

Of course, they still have excuses about sales volume.

Messi CEO Terry Lundgren said at the analyst conference that the weather in September this year was very warm in the United States in October this year, and the number of customers who came to the shop to buy winter sweaters and coats decreased.

It not only blames the weather, but also blames consumers. "What they buy now is not for sale."

They like to buy cars, electronic products, or tools for decorating and pforming houses. "

Lundgren believes that the change in US consumer habits is the main reason for the decline in performance.

The accumulated inventory is 4.6% more than that of the same period last year.

The third reason is that the strong dollar makes travelers less enthusiastic about shopping.

How to listen to this farfetched...

In fact, Messi's Department announced in August that it had established a joint venture with Fung Retailing Ltd of Hongkong's Feng Shi Group and opened a shop in Tmall with the goal of achieving $50 million online sales in China next year.

But last Friday, Messi (Macy's) took a picture of Feng's retail and set up a Messi China joint venture to take the lead in e-commerce and attack China's middle class market.

This is the second time

Messi's department store accounted for 65% of the shares, and Feng's retail sales accounted for 35%.

The investment in the first 18 months of the joint venture is expected to reach US $25 million, and e-commerce sales in China will reach about US $50 million next year.

In fact, Messi stores began selling business in China and about 100 other countries in 2011.

The number of mainland netizens is as high as 668 million, and the middle class population is estimated to reach 630 million by 2022. Therefore, Messi's department stores are optimistic about the mainland's Internet sales market.

Messi used to sell products through third party websites in the mainland, but because the web page was not attractive enough, it could be turned back.

Terry J Lundgren, chief executive of Messi's department store, emphasized that this is the Fung's retail cooperation based on Macy's brand and its rich sales experience in the mainland, which is being sold on Tmall international platform.

In order to save the company's difficulties, Messi is changing.

First of all, remake the storefront, such as New York, Chicago, San Francisco and Minnie's flagship store.

At the same time, a discount shop called Backstage was launched.

In September, Messi's 5 discount shop opened.

Messi opened a discount store in addition to helping Messi store share some of the accumulated goods, but also compete with other discount stores such as T.J. Maxx, Marshalls.

Messi plans to open 50 discount stores in the next 2 years, and 10 of them will be rebuilt in the stores already owned by Messi, and will be sold to the discount stores.

But Messi's main brands include Ralph Lauren, Calvin Klein, Tommy Hilfiger, Michael Kors and INC, so opening a discount store is also risky. It not only affects the sales of the full price store, but also damages the image of the main brand.