LADY M in the country's existing stores will be closed in September

LADY M in the country's existing stores will be closed in September, yesterday was LADY M "screen" of the day. July 21st, the net red brand LADY M released on the termination of the operation of mainland China stores announcement. LADY M existing stores in China will be closed in September.

LADY M's existing stores in China will all close in September.1

On July 21, LADY M's exclusive operator in mainland China, Shanghai Makiso Catering Management Co, Ltd, released an announcement that all physical stores of LADY M in mainland China will terminate on September 10, 2022.2

The announcement also mentioned that "LADY M is a brand with a strong reputation in China," and "LADY M is a brand with a strong reputation in China. The announcement said, "LADY M brand party insisted on requesting all stores in mainland China to terminate operation", the Company y regretted. But the Beijing Youth Daily reporter learned that this may be a prelude to LADY M to direct the Chinese market.

July 21 midday, LADY M in mainland China, the exclusive operator of the brand products, Shanghai Mushan Catering Management Co., Ltd. said, now at the request of the LADY M brand, will be closed on September 10, 2022, LADY M in mainland China, all the existing stores. However, consumers can still go to LADY M physical stores and online small program to consume (including normal use of LADY M prepaid card) before the termination date.

#LADY M withdrawal from mainland China # also quickly rushed to the hot search. The Beijing Youth Daily reporter noted that shortly after the release of the news, a number of LADY M stores on the Beijing takeaway platform cake merchandise show "sold out", some stores only have drinks can provide takeaway. On the company's small program, although there are still a number of products to choose from for the cake pick-up reservation service, when placing an order, it shows that "today's inventory at the store is sold out". The whole cake booking order service until July 23rd to pick up the store.

There are currently three LADY M stores in Beijing. Staff at the China Central Place store are also busy packing cakes. "There was a sudden increase in orders after noon today. About the closure of the store, we also know from the Internet, the specifics are not clear." The staff said. Some customers are worried about their purchase of the card can not be refunded, rushed to buy the cake, also appeared because the store is closing, to play the card consumers.

The company's customer service phone or a long time no one answered or prompted to "not convenient to answer, please leave a message".

Beijing Youth Daily reporter learned that LADY M because of its lasagna cake in the United States by the pursuit of the United States is a cake net red brand. 2017 September, LADY M in Shanghai IFC's first store opened in mainland China, it was once a "net red" cake, need to queue up for six hours to buy, and the price of each piece of cake by scalpers, the price of each piece of cake by the price of the scalper, the price of each piece of cake by the scalper. The scalper added hundreds of dollars to the price of each piece of cake.

In fact, its cakes are at the high end of the chain bakery stores' cake prices, even without the markup. A piece of cut corner cake priced at more than 75 yuan, 6-inch cake priced at more than 530 yuan, known as the "cake Hermes" by netizens.

But the closure of the existing stores may not be a complete farewell to the Chinese market. According to foreign media reports, Lady M will fully adopt the direct mode of operation in mainland China. Since entering mainland China in 2017, LADY M has been working with authorized partner Shunliyuan (Shanghai) Commercial Management Company Limited (hereinafter referred to as "Shunliyuan"), and the license agreement between Shunliyuan and LADY M expired on April 9, 2022, and has not been renewed, the source said.

LADY M said it plans to move the business to 100% direct operation. "LADY M looks forward to dominating the business in China, a market that is critical to our growth strategy," said LADY M CEO Ken Romaniszyn. "Lady M looks forward to enhancing our business in China with direct sales, which is key to our growth strategy. We will continue to serve our loyal customers and uphold our brand standards."

LADY M's existing stores in China will all close in September.2

A termination announcement has made the Netflix brand LADY M the king of conversation once again. on July 21st, LADY M's mainland official said, among other things, that all of its brick-and-mortar stores in the country's domestic territory will be terminated on September 10th, 2022.3

LADY M has been in the news for a long time, but it has also been in the news for a while now. However, for the closure of the store also appeared different voices: the brand to recover the operating right to use direct mode of operation of stores in mainland China. The analysis pointed out that no matter who owns the operation right, the research and development ability and continuous innovation is the key to maintain its long-term vitality.

Termination of the operation

Yesterday was a day of LADY M "screen". July 21, the net red brand LADY M issued a notice on the termination of the operation of stores in mainland China. Announcement shows that Shanghai Makai Catering Management Co., Ltd (hereinafter referred to as "Shanghai Makai") is Lady M Confections Co. Ltd. authorized, as the exclusive operator of the LADY M brand products in mainland China, now LADY M brand should be closed at the request of LADY M mainland China, all existing store in mainland China at the request of the LADY M brand.

On the specific time of the store closure, Shanghai Makin said, LADY M all physical stores in mainland China will be terminated on September 10, 2022, the termination of the termination of the termination of the termination of the prepaid card for the termination of the payment date of LADY M. Consumers can still go to the LADY M store on the termination of the termination of the termination of the termination of the payment date. Consumers can still go to LADY M physical stores and online apps to make purchases before the termination date (including normal use of LADY M prepaid cards). Consumers who have not utilized their LADY M prepaid cards by the termination date can apply for a refund in accordance with the process.

Regarding the future development plan of LADY M, the relevant person in charge of LADY M Mainland said to the Beijing Business Daily reporter that the official announcement shall prevail.

It is worth noting that the Shanghai Makin salary in the announcement emphasized that the LADY M brand insisted that all stores in mainland China to terminate the operation, accordingly had to make the termination of the operation of LADY M stores in mainland China related arrangements.

Subsequently, the Beijing Business Daily reporter visited the LADY M Beijing China Central Place shopping center store, as of press time the store is still in a normal business state. On the above announcement, its store staff said, "just learned of this news", the store specific business to which day is not clear, all to the official announcement shall prevail.

It is understood that the cake store LADY M, which started in 2004 in New York, USA, is known as the "Hermes" in the cake industry, and the sales price of a single slice of LADY M cake is divided into two kinds of flavors: 68 yuan and 75 yuan, which is almost three times as much as the general sales price of a single slice of cake in the market compared to the sales price of other brands. around.

LADY M opened its first store in mainland China in 2017, followed by its first store in Beijing in 2018. As of July 12, 2022, LADY M has 3 stores in Beijing***.

Raising speculation about the brand's operating authority

LADY M, which comes with a halo, attracted attention and popularity when it first entered the Chinese market in 2017, and set off a queuing frenzy when it entered the Beijing market. However, since last year, it seems that LADY M has also begun to make adjustments in the domestic market.

Last October, located in Beijing Sanlitun, Chaoyang Joy City, Xidan Joy City, etc. LADY M stores are withdrawn, which closed the store also includes the first store in Beijing, for this change, LADY M relevant responsible person also expressed certainty, said that it is in the process of adjustment. In fact, from the point of view of the above closed stores, not only including the first store in Beijing, the first store in North China and other just entered the Beijing market, several "old" stores, but also in the core areas of the business district stores.

At that time, when the above situation occurred, there was a "LADY M will be originally located in the popular business district store closure and adjustment, and its business situation is not ideal has a relatively large relationship" voice appeared.

However, from the announcement, the reason for the termination of the operation of stores in mainland China is mainly from the requirements of the LADY M brand, and one of the reasons may also be related to the brand's operating authority. According to foreign media reports, LADY M will fully adopt the direct mode in mainland China. The original five-year license contract for the mainland Chinese licensee expired on April 9, 2022, and will not be renewed. However, the relevant person in charge of LADY M Mainland did not respond to this statement.

Wen Zhihong, a senior chain industry expert, pointed out that the high-end baking market is more niche, the frequency of consumption is not very high, LADY M pricing is high, the product is relatively single, into the mainland China market only in the short term to cause a Netflix effect. If this adjustment is to recover the right to operate, on the one hand, it may be that the brand is dissatisfied with the agency's operation, worrying about the negative impact on the brand. On the other hand, the move also signals that the brand still has confidence in the Chinese market.

Light on investment, heavy on marketing

LADY M has been in the Chinese market for about five years, and while it is highly sought after, it is also gradually revealing how to support the market and store expansion. For example, on social media platforms, some consumers have questioned LADY M's taste, cost-effectiveness and speed of updates.

For Netflix brands, product quality, R&D capabilities, and consumer experience are the core competencies that keep them "evergreen".

Lai Yang, chief expert of the Beijing International Trade Center Research Base, said that many brands choose to authorize third-party companies when entering new markets, and when they see the market potential, they will change the brand to a direct mode, and personally go down to the layout.

"At present, many netroots brands are 'light on R&D, light on investment, heavy on marketing', putting the cart before the horse." Lai Yang said, however, the survival cycle of many net red brands is shorter, which requires the brand to match the product pricing and quality, while increasing investment in product research and development, and constantly launching explosive products to meet the diverse needs of consumers, so as to maintain the brand's long term development, and to bring a constant stream of fresh experiences to consumers.

Wen Zhihong further pointed out that, in the case of LADY M, the rate of consumer repurchase is crucial, if the lack of business model suitable for the layout of the local market, it is difficult to continue to operate. In fact, not only LADY M, netroots brands want to maintain a long life, in the first to find their own positioning at the same time, but also need to find to support their own sustainable operation and development of the 'supporting business model.

LADY M's existing stores in China will all close in September3

LADY M, known as "Hermes in the cake world", is pulling out of the Chinese mainland market?

Today at noon, "Lady M mainland official" WeChat public announcement that LADY M all physical stores in mainland China will be terminated on September 10, 2022, the move is at the request of the LADY M brand and had to make the arrangement, while it was previously reported that the LADY M will be a full use of the direct mode of operation! The LADY M brand had to make the arrangement at the request of the LADY M brand, and it was previously reported that LADY M would fully adopt the direct mode of operation in mainland China. Consumers can still visit their physical stores and online mini-programs to spend money before the termination date. Cardholders who did not use the LADY M prepaid card before the termination date can apply for a refund on the online program. After the announcement of the topic quickly on the hot search

Some netizens think that LADY M is a very ordinary cake is not to the point of stunning but the price is amazingly expensive

Some netizens said that this is intended to take back the authorization to do direct and is not a withdrawal from the mainland market

Reporters came to the LADY M Xintiandi store shopkeepers said that today's announcement of the announcement of the takeout because too The reporter interviewed in the store to pick up food takeaway boy boy said today point LADY M a lot of sudden burst single reporter was informed that LADY M Xintiandi store is still in normal operation, but the brand and the shopping mall's lease will naturally expire in the near future will be followed by a normal lease replacement

LADY M Xintiandi store. Picture source: public review LADY M in Shanghai **** there are 10 stores were opened in Shanghai IFC, Xintiandi, Grand Gateway 66, Global Gateway, iapm, Lujiazui Center and other municipal business district of a number of high-end shopping malls. Ms. Liao, a member of the public, said she often go to the Gateway 66 Plaza's LADY M rose lasagna, matcha lasagna are their favorite flavors

"Weekend just went to eat afternoon tea with girlfriends, 198 yuan package contains two drinks and two cakes, the cost-effective or can be, the environment is also good."

"The closure of the store is still quite a pity, ready to go to the small program to order a cake, and then recall."

In addition to Shanghai, LADY M also opened and operated a number of stores in Beijing, Tianjin, Jiangsu, Zhejiang, etc. These physical stores, as well as the online sales network will terminate the operation of the opening of the LADY M was added to the "lasagna Hermes". LADY M's single slice of lasagna is priced at 68 yuan and 75 yuan, which is three times higher than that of other brands on the market

In September 2017, the opening of LADY M's first store in mainland China in Shanghai's IFC center triggered an extremely hot consumer scene, with people queuing up for six hours just to taste a slice of lasagna and even scalpers increasing the price of their products to the point where they were sold at a premium. The scalper price increase in the sale of the scene have become a phenomenon in the Netflix store

Why is the once-celebrated brand closing stores in mainland China? From the announcement can be glimpsed in the announcement of the Shanghai Makin Catering Management Co., Ltd. said in the announcement ▽

The Company y regrets the decision of the LADY M brand side insisted on requesting the termination of the operation of all the stores in mainland China, and accordingly had to make the termination of the operation of the LADY M stores in mainland China and the related arrangements.

The reporter learned that in 2017, Shanghai Mushan Restaurant Management Co., Ltd. introduced the LADY M brand for the first time in mainland China, but the five-year license contract expired on April 9, 2022, and the brand decided not to renew it. In June, Bloomberg reported that LADY M would raise a new round of financing at a valuation of $200 million at a valuation of $600 million. Bloomberg also cited people familiar with the matter as saying that the new round of funding would be used primarily to expand market share in Asia, strategically acquire other bakery brands, and open more stores in China.

"Going forward, Lady M will be rolling out more innovative concept stores with a wider product line." Ken Romaniszyn, CEO of Lady M Group, also said in a recent media interview, "In order to continue to provide the highest quality and the best service to mainland Chinese consumers who love the Lady M brand, Lady M Group will adopt the direct management approach to layout the important strategic area of mainland China."

Competition in the domestic bakery sector is heating up

In the near future, if Lady M returns to the mainland China market with a directly-managed model, will you still choose it? I'm afraid this question is not easy to answer. In fact, the development of LADY M has been a "high start, low finish".

Image source: Magic City Food SquadToday's Chinese bakery has become an extremely "volatile" market, with the accelerated entry of international brands, the emergence of new domestic consumer brands, and the accelerated innovation of traditional bakery, and even coffee and tea brands have come to cross the border, and the competition tends to be white-hot. Over the past five years, international brands have accelerated their pace of entry into Shanghai and China.

Shanghai Xintiandi, for example, there are Italian desserts century-old COVA flagship store, there are Japanese fresh Otaru foreign fruit store LeTAO, and "queue king" butter and bread, as well as by the French desserts pioneer Reynolds founded Reynolds French desserts store and so on. Last month, Laduree, the famous French macaron brand, returned to the Chinese market and opened its first store here. New consumer brands are also not shy, especially the rise of the national wave of dim sum stores, turning new Chinese baking into hip and cool products and cultural symbols.

From Guanglian Shen, Tiger's Head Bureau to Shanhai Tea Point, MoMo Dim Sum Bureau and so on, all running in the core business district, become the young people's "card" to be, but also won the today's capital, Sequoia China, IDG, and other well-known VC/PE chase. At the same time, in recent years, LADY M stores in mainland China have been shrinking and adjusting, and its red aura is fading. Industry insiders say that if LADY M to direct mode after the return to the Chinese market, is bound to face more competitors than five years ago.