Esprit Chasing Fast Fashion Is Hard To Hide.

Mr. P, chief executive of the world's largest executive office, was present at the first investor day after taking office. A few days ago, Esprit formally renounced the 4 year pformation plan announced by its predecessor, replacing it with short-term cost savings goals, and making products "value for money" as the direction of future pformation.

At the meeting, he also presented a series of financial indicators for the new fiscal year, but expected that business performance will continue to be weak in the coming year.

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P is the parent company of Esprit. Its latest profit and recent look is that its 2012-2013 financial year will face its first loss in 10 years and the loss will exceed HK $3 billion.

The big bull market, which has risen 47 times since its listing, is facing the fate of being kicked out of the blue chips.

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< p > < strong > location confusion > /strong > /p >

P, which once led by former chairman Xing Liyuan, has experienced the most brilliant era so far and was once regarded as a "retail king" in Hong Kong stocks.

However, with the constant reduction of the largest shareholder Xing Li Yuan, Si Jie is also like a deflated ball and goes straight downhill.

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< p > Xing Liyuan's departure 5 years ago triggered the high level turmoil in sage global, and the "sequela" of this turmoil has been extended till now. SG has dug its feet from ZARA and H&M, but these executives have left.

After 2008, Si Jie world has been emphasizing that it is troubled by wholesale business and European business, and its performance is not satisfactory, and this reason has been used so far.

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Below P, we seem to be in the process of constant adjustment and pformation.

In 2011, vandersk, the former president of Si Jie global, announced that he wanted to rebuild the brand image with HK $18 billion 500 million and win back the "Esprit lady".

At that time, in front of SG, the net profit fell from HK $4 billion 230 million in 2010 to HK $79 million, a year-on-year decline of 98%.

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"P" two years ago, the declaration of declaration of commitment by SGX ended on the investor relations day this year.

It took 2 hours to review the company's performance, and Ma Hao Si also proposed his new 3 year plan.

Unlike in the past, Ma Hao Si did not give investors a "reassurance", but early warning, said: "the savings oriented new plan implementation time is 2014-2016 years, estimated 2013-2014 fiscal year, the company's sales will continue to decline."

Just 5 days before the investor relations day, Si Jie global has just issued an early warning that a significant loss will be recorded in the second half of the fiscal year.

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< p > in the independent a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > Service commentator Ma Gang, it seems that the high-level personnel shock makes the global positioning of Si Jie more and more obscure.

"Si Jie global pformation has achieved little success, and every change of plan at the top of the globe has made it increasingly ambiguous.

At the same time, there were no pilot projects before the implementation of the plan, and most of the changes were based on high-level experience.

Ma Gang said that in recent years, Si Jie has been in the "fast fashion", "light luxury" and other positioning between the wandering.

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P does not seem to agree with the pformation of Si Jie global.

"5 years ago, Esprit's < a target=" _blank "href=" http://www.91se91.com/ "> clothing < /a > the average price was about 500 yuan, and in 2010, its basic T-shirt dropped to over 99 yuan, but now it is about 400 yuan.

A consumer reluctantly said, "Esprit and ONLY, VERO MODA similar clothing prices are 1-2 times that of their counterparts."

Consumer Wang also said that Esprit is no longer what it used to be.

"5 yuan 700 yuan a pair of jeans, now on Amazon China and other websites, sell about 60 percent off, and purchase two and two or more can enjoy 30 percent off discount."

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P, which once wanted to take the "light luxury" route, was also hard to be recognized. Many consumers reflected that they could not imagine how high-end Esprit could compete with Coach and other brands.

Insiders also said that the United States has been building high-end brand Me City, but the brand has been losing money and is under the shadow of low price.

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What is even more surprising is that, besides "a target=" _blank "href=" http://www.91se91.com/ "> clothing < /a >, the brand quietly set up product counters in the major shopping malls in P.

This makes the brand image that is already at stake more discounted.

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In the pformation of P, Si Jie universal seems to be in a hurry.

In the continuous pformation, in the eyes of consumers, Esprit is more of the shadow of fast fashion brands such as ZARA and H&M, rather than itself.

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< p > < strong > new strategy < /strong > < /p >

In 2012, when Mr Ma Hao Si took office, he said that he basically agreed on the direction of the 4 year pformation plan, but yesterday he gave up on investor days.

He pointed out that the performance and pformation plan of the first half of the fiscal year were far from the requirements of sales growth, China's business and operating profit margins.

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< p > MA Hao Si announced that the goal of the next 1-2 years will focus on raising revenue, mainly through four aspects: brand, product, channel and business mode.

At the same time, the group will delay the expansion plan in the mainland; it is estimated that sales will likely continue to fall in the 2013-2014 fiscal year, and gross margins will not be ruled out slightly.

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"P" Ma Hao Si also proposed the new pformation plan, the plan implementation time is 2014-2016 years, this plan mainly by the effective control cost, the goal is to help the company to restore the profit ability.

At the same time, the company will shorten the delivery time and improve the sales of the pilot stores.

Management expects that the expected recovery will start in 2016.

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< p > MA Haus expects that in 2014-16 years, the turnover per square metre can be increased by the number of units per annualized year, but the gross profit margin will continue to be soft, mainly due to continuous investment in improving the quality of products.

If business is improving in the 2014-2015 fiscal year, the company will accelerate its expansion in the next year.

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"P" yesterday, Ma Hao Si also put forward the direction of the new reform, repeatedly stressed that products must be "value for money", so that they can remain competitive in the market.

He said that the past thinking has advantages in the medium price market, but in recent years, many brands that offer good quality, but cheaper prices must be promoted. In the future, we must enhance the value of products and adjust the selling price, so that we can echo the requirements of customers for "value for money".

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< p > he thinks that in order to achieve this effect, we must enhance the efficiency and speed of operation in two ways. He also points out that the group will introduce a new business mode. The time required for the design of the product to be on the shelf will be about 9-10 months. The target will be raised to 6-7 months and will be controlled to 2-3 months in response to market demand.

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< p > < strong > difficult to suppress declining trend < /strong > < /p >

Ye Qizheng, editor in chief of the P, thinks that the advantages of Si Jie universal market are obvious when entering the market of China's clothing brand.

In recent years, the influx of ZARA, H&M, UNIQLO and GAP has left them behind in price, supply chain and design.

"When the fast fashion brand attacks the Chinese market in large numbers, it is a big business."

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< p > data show that as of last December 31st, there were 371 stores in mainland China and 27 new outlets.

The Inditex group has 275 stores in China, 184 in UNIQLO and 120 in H&M.

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"P", director of the brand research center, Lin Yifan, said that consumers are the loyal people of price and style, and it is clear that it is no longer able to satisfy these two basic needs.

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< p > Ye Qizheng believes that Si Jie pays less attention to the trend of consumers and fashion, and relies on data analysis and pressure to make orders.

"Brand competition is becoming more and more competitive, and its performance price ratio is getting lower and lower."

Ma Gang said that not only is it a global brand, but also its fashion brands are in the brand aging crisis.

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< p > in the face of the overall aging crisis, it is more difficult to trace back to the new generation, the pace of fast fashion, or to re explore the brand connotation and start again for the Esprit at the moment.

From the beginning of the new head, the employees of the fashion brand product management department can not see that the choice of Ma Hao Si is probably the former.

This is obviously not a smooth road, and it needs to see how the new strategy will extend to the success of the brand.

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