Takashimaya department store to exit China, shift focus to Vietnam

[Viet]

In this July 30, 2016 file photo, a tape-cutting ceremony is held as Takashimaya Co. department store opens a branch in Ho Chi Minh City, Vietnam. (Kyodo)


TOKYO (Kyoto) -- Major Japanese department store chain Takashimaya Co. will pull out of China due to stiff competition and a fallout from U.S.-China trade disputes, while shifting its focus to Vietnam.

The company will close its Shanghai outlet on Aug. 25 as the store has struggled with declining sales due to rivalry from online retailers and other local stores, as well as a slowdown in consumer spending, a spokesman told NNA on Tuesday.

The decision also stems from a breakdown in rent reduction negotiations, Takashimaya said in a statement.

Located in the Changning district, the Shanghai store has suffered net losses since opening in 2012, and witnessed a marked downturn in sales after the Sino-U.S. trade row broke out last year.

Takashimaya will dismiss 239 employees and liquidate its local unit, Shanghai Takashimaya Co., as early as 2021, the spokesman said, adding the firm will incur a loss of between 2 billion ($18.5 million) and 3 billion yen ($27.8 million).

The Osaka-based department store group also operates outlets in Singapore, Thailand and Vietnam.

Despite its pullout from China, Takashimaya plans to gear up overseas operations as part of its long-term growth strategy.

The Japanese firm said in April it is placing greater emphasis on Vietnam as part of the strategy.


https://mainichi.jp/english/articles/20190627/p2g/00m/0bu/062000c

 

[Viet]

Chinese consumers running out of money?

 

[从八品主簿]

Haven't heard of this store. . . If Chanel, LOUIS VUITTON, YSL, GUCCI, COACH, Cartier, Armani, OMEGA, Versace, Hermès, LONGINES, Rolex, BVLGARI are all exiting the Chinese market, it will explain that the Chinese market has collapsed. The store first heard about it until he announced his withdrawal from China. . .

 

[mudas777]

Chinese consumers running out of money?

Marketing strategy can't compete in the developed market run to the less developed market simple is that.

 

[从八品主簿]

Marketing strategy can't compete in the developed market run to the less developed market simple is that.

https://www.bloomberg.com/news/arti...-to-buy-80-of-carrefour-china-for-699-million
Yes, the soil and water dissatisfaction is an important reason, and it has not adapted to the local market environment. Including the recent Carrefour supermarket China company has been acquired by Suning Group, and basically abandoned the Chinese market management rights.

 

[Viet]

Haven't heard of this store. . . If Chanel, LOUIS VUITTON, YSL, GUCCI, COACH, Cartier, Armani, OMEGA, Versace, Hermès, LONGINES, Rolex, BVLGARI are all exiting the Chinese market, it will explain that the Chinese market has collapsed. The store first heard about it until he announced his withdrawal from China. . .

Weird, foreign luxury companies have no chance but Chinese go shopping overseas buying the stuffs. Why?

 

[lcloo]

Weird, foreign luxury companies have no chance but Chinese go shopping overseas buying the stuffs. Why?

They can buy luxury goods cheaper in foreign countries while enjoy themselves as tourists, so why not.

Luxury brand shops were pulling out because they cannot get the fat profits they initially thought can be easily gained.

 

[从八品主簿]

Weird, foreign luxury companies have no chance but Chinese go shopping overseas buying the stuffs. Why?

Because China has a high tax on luxury goods, the price is more expensive than foreign countries. So many people go abroad to travel to Europe and Hong Kong to buy cheaper than domestic

 

[Viet]

Because China has a high tax on luxury goods, the price is more expensive than foreign countries. So many people go abroad to travel to Europe and Hong Kong to buy cheaper than domestic

Ok buying the stuffs cheaper overseas but chinese tourists ruin domestic luxury sectors. where is your patriotism?

They can buy luxury goods cheaper in foreign countries while enjoy themselves as tourists, so why not.

Luxury brand shops were pulling out because they cannot get the fat profits they initially thought can be easily gained.

Pls why not shop in Saigon Takashimaya?

 

[从八品主簿]

Ok buying the stuffs cheaper overseas but chinese tourists ruin domestic luxury sectors. where is your patriotism?


Pls why not shop in Saigon Takashimaya?

Ok buying the stuffs cheaper overseas but chinese tourists ruin domestic luxury sectors. where is your patriotism?


Pls why not shop in Saigon Takashimaya?

Luxury brands are basically European companies, and the loss has little effect on China. It is normal behavior to buy the right things. And a normal lv classic bag, China's price can be more than 500 US dollars than Europe, Britain and France, the difference is so much, who does not go to Europe to travel by the way to buy more. As for Ho Chi Minh, the tourist spending ability of tourists who may travel to Southeast Asia is not comparable to that of European and American tourists. The luxury consumer groups go to Europe and the United States. Moreover, the price of luxury goods in Vietnam is not necessarily cheaper than that of China. It is good to go directly to Hong Kong to buy cheaper. The tourism in Vietnam is mainly cultural experience and natural scenery. The scenery is good.

Ok buying the stuffs cheaper overseas but chinese tourists ruin domestic luxury sectors. where is your patriotism?


Pls why not shop in Saigon Takashimaya?

However, due to the following reasons in recent years, this phenomenon is decreasing.
The Chinese government has taken measures to crack down on the purchasing industry;
The frequent terrorist attacks in Europe and the shrinking tourism industry have also dragged down the luxury goods sales industry;

Luxury “predators” including brands such as Chanel and Dior have gradually taken measures to increase the price of products on a global scale, while in China they have adopted measures such as constant price or price reduction.

 

[AViet]

When i was In Korea, all department stores were ò Korean names. There used to have some Western brands but all had withdrawn because could not compete.

I hope in a few years, no foreign brands can exist in Vietnam. Vin and Saigon Co op are now in good conditions to win.