Adidas Executives Rescued Esprit&Nbsp, Expanding Stores

It is reported that E-SPRIT, a well-known fashion brand, is now facing a dilemma of survival.

According to the annual report of E-SPRIT's parent company Hongkong Global Holdings Limited, the company has seen a profit decline for three consecutive years, and the latest year's earnings report is appalling, only HK $79 million, compared with HK $4 billion 230 million last year.

To answer this question, we may as well learn about the status quo of E-SPRIT.

Since 2006, when Hongkong businessman Xing Liyuan (his second wife was Brigitte Lin) resigned from the post of chairman and CEO of E-SPRIT's parent company, the E-SPRIT group began to go downhill.

According to Zhou Ting, executive director of the luxury research center of the University of foreign trade and economics, there are two reasons for the decline of E-SPRIT.

Zhou Ting: if we speak from external factors, E-SPRIT is facing a very big impact from European and American fashion brands or fast fashion brands.

In recent years, ZARA and H&M and UNIQLO opened their stores in China very fast, and showed strong development momentum in the Chinese market through their design, operation mode and capital support. The fast fashion brands in Europe and the United States are more obvious than the weaker ones.

From an internal point of view, the most important problem is the instability of the internal team, because after Xing Liyuan quit the shareholder structure, its internal environment is constantly changing.

Is the style and style of clothes suitable for fashion brands?

Kang Lan Xin: the design hasn't changed much and made progress in recent years. Maybe in the past few years, the so-called leisure and leisure dress culture is relatively acceptable. But the current trend of casual wear is also bound with fashion. Some of the brands that fashion and leisure do well now are fashions and leisure. They look relaxed and relaxed, but not too relaxed. They should be combined with some fashion elements.

So its style is basically partial to the foundation, but the network advantages and price advantages of the foundation are all inferior to other brands. There is also a lot of basic money for all customer service and UNIQLO. E-SPRIT does not have any special advantages in the foundation, and the price is not cheap, so I think many consumers do not choose it.

In the face of the market share constantly being eaten up, E-SPRIT also tried to save the losing game, and hired Li Guanyi, an outstanding executive of Adidas, to rescue him.

When the new official took office three fires, Li Guanyi announced on the stage that he would invest HK $18 billion 500 million in the next 4 years to save the Esprit brand. Its goal is to double its sales in the mainland market in the next 5 years and increase its sales outlets from the existing 1000 to about 1900.

However, drastic reforms have not won the recognition of industry experts.

Costumes collocation expert Kang Lan Xin believes that the biggest problem facing E-SPRIT is not the size of the problem, but the positioning of clothing.

Kang Lan Xin: I think expanding the store is not the right direction, because the most urgent thing is to adjust the brand positioning and the targeted crowd, and what series of products will be made in the future. I think this is the first thing to consider clearly, because when the customer group is not very clear and well understood, the site selection may be very vague. It is a good way to choose a single store's performance in the existing location. Besides, the risk is relatively low.

Zhou Ting, executive director of the luxury research center of the University of foreign trade and economics, also feels that the rescue plan for E-SPRIT is a bit of a cart before the horse. For E-SPRIT, it is not the best time to increase sales channels now.

Zhou Ting: because there is no change at all, blindly increasing the number of expansion of stores is equal to the continued increase in costs. The product is still at the low end of the line. The brand has no image and value to speak of. It can only go from bad to worse, vicious circle, and the whole capital is consumed internally. It is not correct to prove its strength in this way.

Zhou Ting believes that the challenges Adidas faces from Adidas to E-SPRIT is greater than opportunities. For today's E-SPRIT, there is not much time to waste.

Zhou Ting: don't expect a professional manager to be the Savior of a brand and an enterprise. Is Adidas's professional manager's career and management experience suitable for E-SPRIT?

In fact, ADI has some similarities with E-SPRIT, but in fact, it is completely different from the company concept and control system.

Chinese entrepreneurs do not achieve the goal of building a sustainable development with their own capabilities. Often an entrepreneur goes away and the business goes bankrupt. So the experience of Chinese entrepreneurs has a lot of questions about the support of the spirit of the enterprise. That is to say, Mr. Lee is actually challenged more than opportunities.