What Made JEANSWEST Turn From A Famous Brand To A "Big Road" Now?

In recent years, with the European and American styles of fan, Han Fan and Japanese fan becoming more and more fashionable, the former "aristocrats"

Long gone, its invariable style, trying to cater for the tastes of the fashionable race, has appeared to be inadequate.

"When I was in high school, I bought JEANSWEST clothes, but when I grew up, I obviously felt that their style tended to be younger.

It's very hard, but it's hard to evoke people's desire to buy. "

A young white-collar worker sent this feeling.

Once "noble"

Gradually weakening

JEANSWEST launched its first market in Shanghai in 1993.

Since then, the scale of more than 700 chain stores and franchises has reached a large scale throughout the country.

The Huizhou based casual wear manufacturer has a turnover of 1 billion 400 million yuan in 2002.

In many garments

In China, JEANSWEST is located in the popularity of "famous brand", and the image of "value for money" has been praised and loved by many young people.

However, the good times are not long. With the emergence of new casual wear brands such as ZARA, H&M and UNIQLO, JEANSWEST and Giordano have once been brilliant.

Reporters visited JEANSWEST store in Xidan recently. Although it is located in the most prosperous commercial area of Beijing, the passenger flow is very contrasting with its geographical location. It is located in the parity shop, a new generation of JEANSWEST shops with five levels and one corner. Only one staff member is standing at the door of the shop.

Although its product is "cheap to get home", the new product with a price of only a hundred yuan will be hit 15% off again, but the reporter has noticed that dozens of minutes have passed, but no customer has yet come into the shop.

"There were four JEANSWEST stores in Xidan before, and then two shops in Xidan shopping center were closed, leaving only two."

A staff member of JEANSWEST Beijing company told reporters.

It is reported that in the first half of 2012, JEANSWEST reported a net profit of 81 million 290 thousand yuan, a decrease of 52% compared to 171 million yuan a year ago.

In this regard, an internal public relations official of JEANSWEST said JEANSWEST will respond to the increasingly competitive market situation by controlling the cost of each link and strengthening internal management.

But when it comes to JEANSWEST's future product positioning pformation, and so on, the reporter has not received any reply from the journalist as of press release.

Intensified competition

Backward management

For the reasons for the sharp decline in performance this year, JEANSWEST revealed in its semi annual report that the slowdown in economic growth and the increasingly fierce competition in the industry are the main reasons for the loss of some gross margins. Meanwhile, the rental of the stores has increased rapidly, and the franchisees in the four or five tier cities have also been affected.

In fact, JEANSWEST's "downhill" is by no means sudden. As early as 2009, "China Textile and garment enterprise social responsibility report joint conference", JEANSWEST Chairman Yang Xun once said, "China's casual clothing market grows at a rate of 30% per year, JEANSWEST's annual growth rate is 15%-20%, compared with the market growth rate, JEANSWEST's market share is indeed declining."

Meanwhile, in the first half of 2010, JEANSWEST's parent company, sun rising group, also lost 12% year-on-year.

"JEANSWEST is in a passive position in the competition.

As domestic competition is fierce and rents are increasing, JEANSWEST will focus on foreign countries. "

Zhu Qinghua, a light industry researcher at CIC, said: "on the one hand, the competition in the domestic clothing market is fierce. Fast fashion brands such as ZARA and H&M have been rushing to the Chinese market. On the other hand, JEANSWEST's development strategy is behind the rhythm of the market.

The biggest business strategy is the slow pace of logistics, cost control, inventory turnover and other management links.

The pressure of inventory gives JEANSWEST almost every day a discount promotion war. In the era of high cost and high competition, if JEANSWEST does not have effective improvement measures, the prospect is not optimistic.

"Inventory is an important indicator that can not be ignored. If business income represents the current situation of enterprises, then inventory can predict the future."

Zhang Bin, chief analyst of the textile and apparel industry of the state securities company.

Propaganda error

Frequent problems

In recent years, in addition to other clothing brands, JEANSWEST has been investing more in public welfare sponsorship, such as advertising campaigns, celebrity endorsements and sponsorship entertainment programs.

For example, in the poverty-stricken areas of China donated 8 of the hope primary school named by JEANSWEST, and held a series of recreational sports such as "JEANSWEST cup casual wear design contest", "2004 JEANSWEST China model competition" and "national extreme event masters competition".

In particular, Tsinghua University's "JEANSWEST building" was hit by a stir last year.

In this regard, Zhu Qinghua said, JEANSWEST's actions to bring positive energy to the enterprise is small, sometimes even has a reaction.

The rejection of JEANSWEST building is due to the strong publicity purpose and strong commercial flavor of its donation, which is not commensurate with the image of Tsinghua University.

In addition, in recent years, JEANSWEST has been repeatedly exposed to quality problems, so that consumers have to look at the public welfare undertakings.

It is reported that in August of this year, JEANSWEST shirts were inspected by the Hunan industry and Commerce Bureau for substandard products. In April of this year, JEANSWEST official flagship store was publicized by Juhuasuan due to hyped sales volume, and the qualification of JEANSWEST to participate in the event was cancelled. The search and screening or deletion of goods sold for speculation were carried out; in July 2010, a pair of shorts of JEANSWEST was detected by Beijing trade and Industry Bureau, and the color fastness was not qualified.

Zhu Qinghua suggested that the most important thing for JEANSWEST to enhance its competitiveness is to expand the influence of the brand, because for the fashion brand, the brand image is higher than everything.

At the same time, we must strengthen enterprise management, optimize the allocation of resources and ensure product quality while expanding.