US-based fashion behemoth, Guess, has announced plans to shutter all its outlets in Mainland China by the end of this month. This move is seen as a continuation of the trend witnessed in recent years where multiple foreign labels have ceased operations in the region.
Guess has let its customers know of this impending closure through text messages, stating that both its brick-and-mortar and online stores will be affected. Consequently, the company has already ceased the sale of its products on its Tmall online flagship stores.
The fashion giant has hinted towards a strategic repositioning within the Chinese market, utilizing an innovative model. However, specifics of this new strategy have not been divulged yet.
Guess first set foot in Mainland China back in 2007, launching its inaugural store in Shanghai. The brand witnessed impressive growth, boasting around 250 stores in the region at its peak in 2019.
Guess’s withdrawal from China echoes the actions of various international brands over the past few years. Prominent labels including Old Navy, Topshop, Bershka, Pull&Bear, Stradivarius, and Oysho have all left the Chinese market.
Why is Guess closing its stores in Mainland China?
Guess is following the trend of many foreign brands that have exited the Chinese market in recent years. Specific reasons for Guess’s decision have not been provided.
What is the company’s future plan in the Chinese market?
Guess plans to reposition itself in the Chinese market with a new business model, although the company has not released any details regarding this plan.
Which other foreign brands have exited the Chinese market recently?
Several foreign brands have closed their operations in China in the past few years, including Old Navy, Topshop, Bershka, Pull&Bear, Stradivarius, and Oysho.
