<div id="readability-page-1"><div id="news-body">(Yicai) March 2 -- Guess will close all of its online and offline stores in China at the end of this month due to adjustments in its business model, the US fashion brand told its clients.Guess' parent company Authentic Brands Group then explained that this move is part of a strategic adjustment in the Chinese market, adding that the brand will focus on developing a new model in the future. However, ABG did not disclose any specific details about the plan.Founded in Los Angeles in 1981, Guess offers a wide range of products, from clothes to footwear, from accessories to perfumes. It entered the Chinese market in 2007 and quickly gained popularity among youngsters, reaching a peak of over 250 brick-and-mortar stores. But in recent years, with the rise of local brands and changes in consumer trends, Guess has gradually exited core commercial districts, and its offline presence has shifted towards outlet discount stores.Guess faces high operating costs in China and has failed to timely establish a presence in emerging channels, such as livestreaming e-commerce and social commerce, according to market analysts.In January, ABG and Guess announced they had completed a restructuring, with the core Guess intellectual property being held by a new joint venture controlled by ABG with a 51 percent stake. Guess was then delisted from the New York Stock Exchange.ABG is not a traditional apparel group. Its core model focuses on brand IP management and global licensing, with a portfolio that includes dozens of brands, such as Reebok, Champion, and Forever 21.When it acquires a new brand, ABG often divests directly-operated heavy assets and shifts toward a regional licensing model. For example, Forever 21 was relaunched in China through local partners leveraging e-commerce channels after being bought by ABG.The closure of Guess' stores in China may be part of a similar light-asset strategy, analysts believe.Editor: Futura Costaglione</div></div>

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US fashion brand Guess will close all its stores in China by the end of March due to a strategic business model adjustment. The parent company, Authentic Brands Group (ABG), aims to focus on a new model but has not provided specific details. Guess, which entered China in 2007, has struggled with high operating costs and competition from local brands. The brand's presence has shifted to outlet stores, and it was recently delisted from the New York Stock Exchange. Analysts suggest the closure aligns with ABG's light-asset strategy for brand management.

US Fashion Brand Guess to Close All Stores in China, Adopt New Business Model