Esprit Spanformation Is Difficult: Location Confusion, Channel Flat

Sijie global parent company high level exchange spanfusion, Esprit's flagship store store evacuated business circle, fast fashion collective "encirclement and suppression" let Esprit recently become a hot topic for industry. Vanders, the former chief executive of China's parent company, has recently announced that he will not become the second ZARA and said that it is different from the fast fashion business's wholesale business.

According to the insiders, as a German brand, Esprit's deep-rooted European culture is difficult to change, resulting in the spanformation of brand strategy is also difficult. To a certain extent, it determines that the brand itself can hardly become ZARA's fast fashion brand. And once ignoring the Chinese market and relying too much on wholesale business, it also shaded the so-called Esprit spanformation.

Customers' large span, location confusion, and difficult to cure

If consumers go to Esprit stores in the near future, they will find that there seems to be some changes in their clothing. A staff member at Nanjing East Road store, Shanghai, told reporters that the style of Esprit this year is much more obvious than before.

According to the staff in the store, Esprit positioning customers are between 20 and more than 40 years old. For such a span, garment independent commentator Ma Gang said, "the span is already too big." "Such positioning is not clear enough." Garment independent commentator Ma Gang believes that clothing brands are generally more clear in the market segmentation, and easier to let consumers know the target groups that are suitable for the brand.

Not only is the problem of age span, it is understood that Esprit brand positioning also has confusion. According to the salesperson, Esprit's clothing is divided into leisure series and Sven series, among which leisure series is aimed at young customer groups. Some consumers who bought Esprit brand clothing said that compared to other brands, Esprit positioning young customers group clothing is still biased towards Lao Chen, while clothing for professional women is monotonous and lack of fashion sense. "I always thought their clothes were worn by more than 30 year old professional women." A consumer told reporters.

Under the vague position, Esprit is quickly surrounded by "fashion". Therefore, its parent company Si Jie universal said that in order to cater to the market, Esprit will also be spanformed into a fast consumption clothing brand. However, its deep-rooted conservative culture in Europe has forced the industry to question his spanformation.

Esprit, a long-time observer of the clothing industry, said it belonged to a German brand. Germany The European culture is durable and fashionable. Europe is also the company's main battleground. According to the existing bulletin, in the 2011-2012 fiscal year, the European sales of Si Jie Europe accounted for HK $13 billion 92 million, accounting for 78.4% of the group's sales. This person believes that it is no easy task to get rid of such a culture under the support of huge sales in Europe. Although the style and other aspects have been working hard, it seems to have some results, but "the basic culture is difficult to change, to a certain extent, it is also doomed to Esprit to be fast." Fashion brand "

"They are positioned in the market of mature white-collar workers, and then take advantage of some aspects of design or price, as well as the possibility of salted fish turning over."

Brand channel is not flat enough to drag on subsequent development

To remove confusion, Esprit There are other problems.

Esprit once ignored the development of the Chinese market, though it had seized the opportunity to enter China, but failed to make good use of it. In today's many domestic fashion brands, "Esprit", it is hard for us to make further efforts.

Having realized this problem, as an important part of business adjustment, expanding the channels and brand investment in mainland China has become one of the most important concerns of the company.

According to its 2009-2010 fiscal year report, China's market sales accounted for only 2.4%. In the next 2010-2011 fiscal years, the figure rose to 7.9%. The 2011-2012 fiscal year interim report shows that sales in China are HK $1 billion 411 million, accounting for 8.4%.

"At home, he is not sensitive enough to the concerns of the terminal market, and has not made any changes after the subsequent changes in the market environment." Ma Gang said that the best development period of Esprit in China has passed. "After all, many brands have seized market share before." In his view, Esprit did not expand its advantages when it had advantages, and now it is more difficult to change it.

In addition to ignoring the development of the Chinese market, the wholesale mode of Esprit is also one of the concerns of the industry.

According to the 2011-2012 fiscal year's interim report, the Esprit parent company accounted for 59% of the retail sales, while the wholesale business accounted for 40.3%. Although it was adjusted by 56.3% and 43.1% over the same period last year, wholesale business remained the focus of the company's development.

Van der Shi also pointed out to the media that the company reformed its wholesale and distribution channels and would invest more heavily in wholesalers.

Li Hongxian, a senior consultant at Shang Pu, said that Si Jie was the main wholesale mode in the European market, which has the characteristics of light assets and low risk. "While promoting the rapid expansion of Esprit's European market, the company also neglected the construction of its own supply chain capability."

Li Hongxian believes that for the brand clothing, although wholesale business can guarantee a certain amount of clothing sales, however, a large number of wholesale businesses make clothing enterprises lack direction in product R & D, and are not sensitive to market demand.

"The channel of brand is not flat enough, which is a great obstacle to the speed of fast fashion supply chain." Ma Gang said that the speed of products from wholesalers to shops is much slower than that of direct retailing. "At the same time, wholesale profits are relatively low. In this process, the brand will spanfer a large portion of its profit space to wholesalers."

"There is no choice between changing and changing. The direction of Esprit is not yet determined." Ma Gang told reporters that Esprit brand positioning is not yet determined, channels have not been clearly identified, the brand has been hovering. "If the market reflects its small changes, Esprit will follow a bigger change."