Esprit Is No Match For Fast Fashion Brand.

< p > Esprit, Edc two big a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" brand and home brand brand global (00330.HK) released its fiscal year ended June 30, 2013 as reported in September 10th. The company made its first annual loss with a net loss of 4 billion 390 million yuan yuan in 1993, which is higher than market expectations.

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In the financial year of P, fiscal year 2013, the revenue of HK $30 billion 200 million declined by 14.1% to HK $25 billion 900 million over the previous fiscal year.

Europe is still the largest market, with a turnover of HK $20 billion 301 million and a total turnover of 78.4% from last year's 75.9%, but its year-on-year growth has dropped by 7.9%.

The Asia Pacific region's turnover was HK $5 billion 79 million, down 6.7% compared to the same period last year.

China is the largest market in the Asia Pacific region. It is also the third largest market in the world, accounting for 9.3% of total turnover and 8% year-on-year in revenue.

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< p > < strong > "hero late night" < /strong > /p >

During the period of < p >, the turnover of the two major brands of Esprit and EDC accounted for 76% of the total turnover of the company (75.1% in 2012) and 24% (24.9% in 2012).

Among them, Esprit turnover decreased by 10.5% and EDC turnover decreased by 14.6%.

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< p > as of the end of June, the number of 1024 outlets in the Si Jie global stores decreased by 42 compared to the same period, and the same store sales level dropped by about 3.3% year-on-year.

In order to reduce inventory, it also accelerated the opening of special stores. At the end of the year, there were 79 special stores, with a net increase of 12.

Its largest sale area in Germany Ratingen is 3500 square meters.

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P said the loss was mainly due to the acquisition and impairment of goodwill, closing stores and stale inventories of Chinese associated companies, which amounted to about HK $2 billion 722 million.

Among them, the provision of tenancies for Europe's loss shops and the North American business of stripping the loss (all the stores in the region were closed by June 30, 2012).

Excluding these non recurrent items, the net annual loss has shrunk to HK $534 million, compared with HK $921 million in the same period last year.

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P, chief executive of Si Jie global, said that sales rebounds still need time and structural improvement is needed.

The company will continue to close its stores this year, and its short-term goal is to reduce inventories by 10%.

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< p > in 2009, Si Jie global made a $3 billion 880 million cash purchase to Huarun for 51% rights and interests of the joint venture company, so that it formally owned a wholly owned Esprit brand.

At that time, Si Jie global was optimistic about the growth momentum of Esprit in the mainland's < a href= "http://www.91se91.com/news/index_s.asp" > market < /a >.

But Esprit, once a young man's chasing target, is now facing a serious dilemma of brand aging.

In the fierce competition of international fast fashion brands such as Zara, H&M and UNIQLO, it appears "hero's Twilight".

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< p > Esprit, Zara is more fashionable, H&M product line is richer, UNIQLO's basic cost performance is higher.

The series of weaknesses such as "not keeping up with popularity, falling prices, high inventories, low sales and slow turnover" made Espr it more and more strenuous in competition with competitors.

Taking inventory turnover as an example, Zara's inventory turnover is as fast as 7 days, while Esprit is about 102 days. The difference in turnover rate increases the storage cost of Espr it, and the reduction of warehouse cost means lower cost and quick updating of goods.

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< p > < strong > difficult to reshape < /strong > /p >

< p > Esprit once wanted to change.

SG has launched a "HK $4 4 year remodeling brand plan", including the stripping of the long lost retail business in North America, the recruitment of the world's highest earning model Gisele Bundchen as brand spokesperson, opening up new concept stores and streamlining business organizations.

The plan originally made the industry full of anticipation.

However, from the end of 2011 to the middle of 2012, the continuous high-level personnel changes led to the implementation of the reconstruction plan in less than two years.

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"P" finally, last year's new chief executive, Ma Hao Si, pointed out that the only way out for the company is to continue to cut procurement costs.

Ma Hao Si also proposed a new pformation plan. The goal of the next 1-2 years will focus on raising revenue, mainly through the four major aspects of brand, product, channel and business mode, and will delay the expansion plan in the mainland.

The company will also shorten the delivery time and improve the sales of the pilot stores.

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In order to find a breakthrough, P began to dig its competitors' corner.

In August 2012, the company excavated ZARA's chief executive and Inditex's former executive Jose Manuel Mart Nez Guti e rrez at a salary of about HK $40 million 830 thousand a year, and appointed him as executive director and chief executive officer of the group.

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< p > Mart Nez has served as director of distribution and operation of Inditex group, responsible for managing the distribution of the group and its extensive global retail network.

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< p > > a href= "http://www.91se91.com" > "Jie Jie" /a > Global expects to improve product design and supply chain process by introducing "ZAR A" talents, gradually reducing the sales time from product to shelf sales from 10 months to 7-8 months, and finally approaching Zara and H &M.

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< p > but the actual effect of these measures is still unknown.

Management expects that the performance of Si Jie global is expected to revive in 2016.

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