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Interpreting The Development Prospect Of Fast Fashion ESPRIT

2013/9/8 21:52:00 62

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Fast Fashion ESPRIT High-End Consumption

when ESPRIT was confronted with a great change in the market environment, the company was in a critical state of decision-making and lost its development opportunity.

as a high-end consumer area, it is easy to feel the trend of fashion in Sanlitun, Beijing.

Here, the ESPRIT store which once occupied the gold position has quietly closed down, waiting for the arrival of the next tenant quietly.

> a href= "http://www.91se91.com/news/index_c.asp" > ESPRIT < /a > -- the brand of "fast fashion" veteran has been on the decline in recent years.

Positioning lost its way, people continue to slide, even if the high salary to rival executives can not restore its decline.

And a href= "http://www.91se91.com/news/index_c.asp" > ZARA < /a > H&M, Uniqlo and other rising stars quickly occupied the global market.

Compared with ESPRIT, ZARA is more fashionable, H&M product line is richer, Uniqlo sales network is more developed.

In the Chinese market, as the first tier cities such as Beijing, Shanghai and other stores have closed down, ESPRIT has been forced to fight for second tier cities.

soul walking away /p >

since 2009, ESPRIT's profit has declined for three consecutive years, which is closely related to the departure of its parent company, the largest shareholder of Si Jie world, Xing Li Yuan.

In P, 1970s, Xing Liyuan became an Asian regional agent from New York, advocating the brand of an international youth lifestyle.

In 1993, the Esprit Far East Limited, which operated by him, successfully landed in the capital market and listed on the Hongkong stock exchange.

Subsequently, the Far East set foot on the road of acquisition and integration of the global ESPRIT brand. Its brand management and management rights in Australia and Europe were successively earned.

In 1997, Asia suffered from the financial crisis. Many brands slowed their pace of development. But the Far East was expanding, and the market layout was completed at a lower cost. At the same time, ESPRIT's business became more and more popular. P

In the same year, with the steady progress of acquisition and integration of ESPRIT brand, Si Jie Far East renamed the company "Si Jie Global Holdings Limited" and became the wholly-owned helmsman of ESPRIT brand in 2002.

After the unified image, Si Jie universal has achieved great success through the integration of product design, purchase and sales management.

In those days, Si Jie world was once praised by investors as the "retail stock king" in Hong Kong stocks, which doubled 47 times in 9 years and reached a compound growth rate of 52.7%.

, but all this is gone after Xing Liyuan's departure.

In the past 2009-2011 years, the profitability of Si Jie has declined for 3 consecutive years. At present, its market capitalization is HK $24 billion 700 million, and its market value is less than 15% in 2008.

why is it down? /strong

The reason why Xing Liyuan left P is still a mystery.

But comparing the ESPRIT before and after his departure, he may be able to see the traces of the decline of the old fashion.

ESPRIT in P is a distinctive brand.

In the 2000 Chinese market, consumer demand has changed dramatically, and the domestic middle class is in urgent need of distinctive brands.

At this time, ESPRIT from the United States quickly captured the hearts of consumers by virtue of its high quality and the emphasis on lifestyle.

but when ESPRIT entered the successor era, many high-end a href= "http://www.91se91.com/news/index_c.asp" > luxury brands < /a > entered China, they could better satisfy the consumption needs of the middle class, while other "fast fashion" brands also occupied the mass market at a low price, and ESPRIT gradually couldn't find its place on the market audience.

ESPRIT in P era is concerned about the needs of consumers and is willing to innovate.

It can fully express the aspirations and desires of consumers, so as to extract the spirit of ESPRIT brand, and injecting the culture of hope into the product, penetrating all levels of design, marketing and storefront, and successfully shaping its distinctive brand image.

Moreover, it develops the channel mode with continuous innovation and ensures the rapid and flexible expansion.

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ESPRIT in the successor era has gradually deviated from the track of "P >" --EndFragment-- "and no longer pays attention to the needs of consumers. The design of products is aging and the style is single, which can not meet the diversified consumption needs of consumers.

In today's fast fashion, young consumers evaluate it as "ten years" and "gloomy".

ESPRIT, who has lost innovation and change, has only one fatality: no advance or retreat.

Xing Liyuan's departure led to many senior executives running away from the company. The managers who lost their final voice were erratic when they needed critical decisions and lost the opportunity for development.

Just like Chen Yihong left KAPPA and Li Ning Co founder Lining was out of management, there was a similar situation.

the turbulence of management has led to the loss of many opportunities in the era of the successor, and it has been losing ground in the fierce market competition.

Xing Liyuan began to cash in from 2006, and the fast fashion brand was rapidly rising at that time, even the international clothing giant GAP had been affected.

But in China, which is of great significance to the global garment industry, the layout of ESPRIT is too slow.

The 2009/2010 annual report, which was first released by China for the first time in the Chinese market, showed that as of June 31, 2010, the total sales of the Chinese market was only HK $793 million, and its contribution to the company was only 2.4%.

in addition, in the era of Xingjie, the global channel mode is flexible because it can be adjusted according to the market, environment and consumption trend.

In the era of successors, its channel mode has been criticized.

As of December 31, 2012, the company's stock turnover days climbed to 102 days, so that the efficiency of supply chain management was not as good as that of the domestic cat group. How did it compare with the "ZARA" people who only had a half month's turnover of inventory?

strive to save yourself. /p >

After being in trouble, ESPRIT began to learn from P in 2011 and decided to make great efforts to save herself.

In September 2011, van der Sar, the former chief executive of P, announced a 4 year pformation plan with a cost of more than HK $18 billion 500 million.

Since the launch of the pformation plan, ESPRIT has used over HK $1 billion 500 million to hire super models to endorse, and has spared no effort to launch huge billboards in the central area of Germany, Hongkong and major cities in the mainland of China.

its "long" supply chain has also been rectified.

Since 2011, van der Sar launched the central procurement plan, reducing 21% of suppliers and 29% of the supply factories, and expanding the procurement locations to low-cost countries such as Bangladesh, Indonesia and India. The management expects that the purchase cost in 2014 can therefore be reduced by 1 billion yuan.

but these self rescue programs failed to save ESPRIT's decline.

The annual report released by ESPRIT showed that the loss in the first half of 2013 was about $60 million, while the net profit in the previous year was US $72 million.

The constant deterioration of performance led to the 2012 chief executive Ma Hao Si, who just took office, finally abandoned his predecessor's pformation plan and put forward a new plan.

the implementation time of the plan is 2014-2016 years. The main purpose is to control the cost effectively. The purpose is to help the company to regain its profitability. Closing some manpower and rentable stores will be the first step in implementing the plan.

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 after the plan is implemented.

in the industry view, although the pformation plan is more pragmatic, but whether the new plan can really work is still unknown.

despite the loss of the soul, the fall into the fall, the loss of customers, the past glory, but ESPRIT still self rescue behavior is really admirable.

And its future will be in the hands of the market and consumers. If there is more patience and tolerance, perhaps ESPRIT will be reborn.