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    Hongkong Clothing Brand Si Jie Hi-Tech Invites Zara Brand Former High Level

    2012/8/18 10:12:00 66

    Clothing BrandSi JieClothing Brand Si JieZara Brand

    Management

    Clothing brand

    Esprit's 00330-HK was once the myth of the fashion industry, and also the leader of the industry.

    In recent years, however, the company has experienced the problem of brand aging and being rushed by competitors.

    Shortly after the pformation plan began, the CEO suddenly left office.

    Let us know whether the new chief executive can lead him into a successful pformation and become a leader in the fashion industry again.


    His performance over the past 4 years is really disappointing.

    The net profit began at the peak of HK $6 billion 450 million in 2008, and began to retrogress in the double digit year. In 2011, it dropped much further from 98% to 79 million yuan.


    In order to save the country, the company began a pformation plan of about 5 years in September 2011, and spent about 18 billion yuan, including 7 billion yuan for long-term investment and 11 billion 500 million yuan for business operations.

    The work includes the publicity of reshaping the brand image, the establishment of the trend department in Paris, the exclusive service of the design center in the Chinese market, the addition of procurement offices, the cost saving, the renovation of retail outlets, and the strengthening of wholesale business.


    In August 7th, the clothing brand announced its annual salary of up to 4 million 250 thousand euros, and hired Jose Manuel Martinez Gutierrez, Zara's top management officer, to serve as the group's chief executive officer in Jose.

    He served

    Zara brand

    The regional manager in Nordic region is fully responsible for regional sales, business performance and business profitability.

    The board of Directors believes that Martinez has experience in operation, distribution and logistics, which will be very helpful to the company.


    Whether Martinez's experience can lead him to get out of the predicament and create another peak? Then we need to diagnose for the first time, and what's wrong with it.


    The brand image of Esprit, the brand of fashion brand, is not able to keep pace with the trend of social consumption, and it gives the young consumers the feeling of "downer".

    The positioning of the middle end is incompatible with the trend of the times.

    Because consumers think its product design is aging and single style, can not meet the diverse needs of consumers.

    On the other hand, Si Jie ignored the problem of supply chain.

    Customers need to order 3 months ago, two times longer than their competitors.

    The low efficiency of supply chain results in the accumulation of inventory, resulting in slow return of capital and greatly weakened competitiveness.


    On the other side, Zara, the rival brand of garment brand, is in line with the market environment.

    First of all, Zara has a clear positioning. From the very beginning, the brand is positioned in the "first-class fashion, second class quality, three price", and the quantity of each product is not large. Even if the selling style is limited, the amount of money is not enough. When a garment stays in the shop, it often does not exceed four weeks, which in turn urges consumers to make a purchase decision as soon as possible.


    According to market intelligence, Zara decided to suspend production of certain garments, and made changes and modifications to the popular products, and promoted the improved styles.

    The design department launches an average of more than 20 thousand new designs per year, three times the number of competitors.

    In pursuit of speed, more than half of the foundries are located near headquarters.

    The logistics efficiency is very high, 2 million 600 thousand shipments a week.

    The customer orders to Zara, 30 days later, the goods will be delivered.


    Clothing brand

    Think quickly

    The main reason why we have to beat our competitors is the problem of brand image and supply chain management.

    Zheng Mingxun, vice chairman of the company, pointed out that the new chief executive, Martinez, will take the task of fine-tuning the pformation plan after mid September, but believes there will be no big change.

    If Martinez can apply Zara's successful experience in supply chain to Si Jie, we believe that Si Jie has the opportunity to get out of the current predicament.

    Consumers can also have one more choice to buy.

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