Why Does "Veteran Minister" Withdraw From &Nbsp? Why Does Esprit Lose Its First Mover Advantage?

The city's small white collar once loved Esprit (Aspe Litt), which is facing an awkward situation.

As of March 18th, the largest circulation shareholder of the parent company, the CRM fund of the United States had reduced its stake in less than two weeks to three degrees.

Another unattractive statistic is that in the second half of 2010, the profits of Si Jie global declined by 20%.

At the same time, Mr. Shen Wenfeng, the senior minister of Si Jie global chairman and general manager of China region, left one after another at the beginning of the new year.

In recent years, ZARA, H&M and UNIQLO, which have their distinctive styles, are attacking the Chinese market crazily.

They have more personalized designs and cheaper prices, forcing Esprit to the next stage.

High frequency motion

In March 18th, the US fund CRM reduced its holdings of global shares to 5.92%, which was the third reduction of its shares in less than two weeks.

CRM used to be the first largest circulation stock in the world, but it has been on the move in recent years.

And a month ago, the first half of the global report was announced.

Before the Spring Festival, the headquarters of China's global headquarters in Shanghai also came out of executive changes. General manager Shen Wenfeng switched to American fashion brand Tommy Hill FGE, becoming the first chief executive officer of China.

Tommy Hill, 2010, regaining China's agency rights from Hongkong agents, is trying to build his own direct camp system in China.

Shen Wenfeng has been looking at fashion, brand management and retail experience for nearly 20 years.

A person in charge of the China market marketing department told reporters that Shen Wenfeng had left her job. She did not disclose the candidate of the new general manager of China.

From 1998 to 2007, Si Jie universal had brilliant "golden ten years", but in recent years the momentum has weakened.

It is interesting to note that Xing Liyuan, who grew up as a chairman of the labor force, has been reducing shares of Si Jie since 2002.

Xing finally cash in HK $17 billion 600 million and resigned from his position in Si Jie in 2008.

It seems that since then, the world has been beset by high levels of turbulence.

Pan Zuming, vice chairman of the company and chief financial officer, resigned in July 2008, and only 5 months later, it was announced that it was Zhou Fuan's successor.

In February 2009, Griffith, executive director and Esprit brand of Si Jie universal, resigned from all positions.

As for the reporters' high-level changes and performance decline, as at press time, Hongkong headquarters of Si Jie global did not reply.

Repurchase mainland business

High levels of turbulence and declining performance may be mutually causal.

In the second half of 2010, its net profit was HK $2 billion 100 million, down 20% from a year ago.

A year ago, according to the market value, Si Jie world is the sixth largest fashion chain group in the world, ranking behind competitors such as H&M, ZARA, UNIQLO and GAP.

For the latest semi annual report, Fang Wanwen, an analyst with Hong Kong Haitong Securities retail industry, told reporters that another reason for the disappointing performance of Si Jie global is that the market for brand 2/3 is the largest in Europe, especially in Germany, but it is very unsatisfactory that the euro depreciates and the European market is depressed.

Now, the world is turning to the mainland to open shops actively, hoping to find new growth points.

In fact, Esprit is a forerunner for the mainland market in China.

As early as 1992, the Esprit trademark and brand entered the mainland. First of all, the company set up a company in the mainland and then distributed it through the trademark authorization of Hongkong company.

Since 1998, Esprit has been developing in both direct and franchised operations in the mainland. It has chosen three markets in Beijing, Shanghai and Dalian to do direct operations, and the rest of the region has been franchised.

Si Jie global and Huarun venture also set up a joint venture in 1998, of which Huarun business accounted for 51%.

At the end of 2009, Si Jie suddenly announced the purchase of all the shares held by Huarun venture at HK $3 billion 880 million, so as to achieve sole proprietorship in the mainland of China.

Fierce opponent

Nowadays, the market of the mainland of China is already the Red Sea, and Esprit has gradually changed from a pioneer to a catch-up.

Sang Yuming, general manager of Hangzhou houtton Trading Co., Ltd., who has been engaged in the garment industry for many years, told reporters that Esprit has a big first hand advantage in the mainland market.

In the past 35 years, the market trend has suddenly changed, and ZARA and other international brands are competing to enter China.

The "fast fashion" brand gets together in the Chinese market.

Esprit was also unable to keep pace with this stage.

"When I mention CAT, I think of overalls. When I mention ZARA, I think of a good windbreaker.

Esprit does not seem to have its own uniqueness. "

Sang Yu Ming said.

Apart from the lack of design, Esprit's pricing is not enough to be close to the people. It is also one of the reasons why customers are being robbed.

Haitong Securities thinks that its wholesale business has been weak and weak.

In the second half of 2010, the wholesale business accounted for 43% of the turnover.

Sang Yuming told reporters that the agency mode of the clothing industry usually has two kinds, one is the agent to join, to the brand purchase, uses the other party's trademark, but the shop location decoration and so on works all completes by the agent.

The other mode is to buy the brand's right of use by agents, find the foundry factories by agents themselves, produce and organize terminal sales, and the whole process is carried out under the inspection and control of brands.

Most clothing brands do not only develop retail businesses directly facing consumers, but also conduct wholesale business in the face of agents.

Retail businesses directly run by brands often undertake the task of building brand image, while wholesale sales are more important.

The sluggish wholesale business is a manifestation of the lack of confidence of the agents. The fundamental reason lies in the products and brands.