At the time of Smith Barbon's launch, the brand faced competition from local names like Baleno, Jean-Wis, and Giordano. This was no small challenge, but over the years, the company managed to thrive. After its listing, it became a target for even more intense competition. Now, the new rivals are not just local brands—they are aiming directly at global fast-fashion giants like H&M and ZARA.
This time, the challenge came in the form of Mumbles’ sub-brand, "Me&City." The task seemed even more daunting. How far could Smith Barbon go?
**The Blank Market**
ZARA and H&M pioneered the fast fashion model. According to An Jiezhiyang, founder of a marketing planning organization, fast fashion is defined by three key elements: fast delivery, affordable pricing, and timely follow-up with trends. ZARA, for example, takes as little as two weeks to bring new designs from the runway to retail stores. Consumers can purchase similar styles to high-end brands like Giorgio Armani at significantly lower prices—sometimes as low as 10% of the original cost.
Typically, the target demographic for fast fashion is people aged between 25 and 35. These individuals have recently graduated from university, have limited income, yet remain highly fashion-conscious. However, domestic Chinese apparel brands haven’t fully tapped into this segment.
An insider from Smith Barney explained that currently, most domestic clothing brands are focused on either younger consumers (ages 16–22) or older ones (over 40). Brands like Youngor and Shanshan, once leading names, have shifted focus toward other industries in recent years. Meanwhile, companies like Benny Road, Jeanswest, Giordano, and Smith Barbon compete fiercely among younger audiences. In contrast, the market for those over 40 is also highly competitive, dominated by brands like Seven Wolves and Jinba. As a result, there’s a gap in the 25–35 age range—people who have left school, started working, and are beginning to look for professional yet stylish outfits.
**Chasing ZARA and H&M**
Smith Barbon is now aggressively pursuing the fast fashion space with its "Me&City" sub-brand. The brand claims it can get products from factory to store in as few as 20 to 30 days. Its design team includes 50–60 designers from mainland China, Taiwan, South Korea, and Japan, who create around 4,000–5,000 models annually. The price range for "Me&City" products mostly falls between 79 and 799 yuan.
Like H&M and ZARA, "Me&City" has opened large flagship stores—some exceeding 1,000 square meters. Industry insiders note that these stores aim to showcase a wide variety of styles, much like Japanese restaurants that offer many small dishes. In cities like Nanjing, the flagship store spans over 3,000 square meters. By the end of October 2009, "Me&City" had already opened 68 direct-operated stores nationwide, with most exceeding 1,000 square meters in size.
While competing with H&M and ZARA, "Me&City" has also expanded into second- and third-tier cities like Baise in Guangxi. Unlike H&M and ZARA, which dominate first-tier cities, they have not yet established a strong presence in smaller markets. Analysts believe that the spending power in these regions is substantial, and many domestic brands have successfully captured this market. "Me&City" aims to replicate this success, preparing for a franchise model in the next one to two years.
**Half the Profit of the Store**
Currently, "Me&City" generates about 400 million yuan in annual sales. Its goal is to reach half of the annual turnover of the parent brand, Metersbonwe, within three years—roughly 2 billion yuan. In the long term, the brand hopes to match the performance of Metersbonwe.
However, industry analysts point out that talent remains a major constraint. The Chinese apparel industry has only been developing its branding for about 15 years, and skilled professionals are still scarce. Many companies are competing for the same pool of talent.
In just one year, "Me&City" has opened over 60 direct-operated stores, but only about half are profitable. The store failure rate is higher than the industry average, partly due to delays in opening and missed sales windows. Rent is another significant concern, as most stores are located in prime business districts where rent is 3–4 times higher than in regular locations.
According to Smith Barbon’s third-quarter 2009 report, the company’s net profit fell by up to 30% compared to the previous year, largely due to heavy investment in the "Me&City" brand. Despite the challenges, the brand continues to push forward, aiming to carve out a strong position in the fast fashion market.
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