Fashion Brand Esprit Low Price Strategy

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The redemption way of < p > a href= "http://sjfzxm.com/news/index_s.asp" > Esprit < /a "is continuing.

Esprit CEO a href= http://sjfzxm.com/news/index_s.asp Jose Manuel Martinez < /a > recently told the German media that the group will launch a cheap brand.

The brand said the brand would be younger and cheaper than Esprit.

Looking back on the road of redemption over the past year, a href= "http://sjfzxm.com/news/index_s.asp" has become more and more difficult. Is today's low price strategy really coming back to life? Now let's follow the world's clothing and shoe net to find out the details.

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Between P and October, Sijie global released its semi annual report, showing that the HK $30 billion 200 million revenue declined 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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The loss is mainly due to the acquisition of non recurrent reserves and devaluation, such as the purchase of "a href=" "http://sjfzxm.com/news/index_s.asp", the Chinese joint company < /a > goodwill devaluation, the closing of stores and old inventory, P > 2 billion 722 million Hong Kong dollars.

Among them, the provision of the lease of European deficit shops and the loss of North America business.

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 > as the first Chinese a href= "http://sjfzxm.com/news/index_s.asp" > Fashion Brand < /a >, Esprit can be seen in the window of Chinese clothing market, but it is seriously lagging behind in many aspects such as design, price, supply chain and so on.

In comparison, < a href= "http://sjfzxm.com/news/index_s.asp" > ZARA < /a > more fashionable, a href= "http://sjfzxm.com/news/index_s.asp" > H&M > /a > product line is richer, UNIQLO basic cost performance is higher.

Analysis of the industry, "can not keep up with popularity, can not lower prices, high inventory, low sales, slow turnover" series of weaknesses, Esprit in the competition with competitors more and more laborious.

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 improves storage costs, while the reduction of warehousing costs implies lower cost and quick updating of commodities.

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"P > has no need to reverse its performance. Si Jie has dug Nike's operation executives and dug ZARA's a href=" http://sjfzxm.com/news/index_s.asp "> designer /a.

Now we are looking forward to low prices to restore market share.

But the reality is that, taking the domestic market as an example, the existing stock price war of the brand has already brought the lowest price to the extreme, and many of the capital clothing stores in Beijing have been 50 percent off or even folded.

< a href= "http://sjfzxm.com/news/index_s.asp" > low price strategy < /a > is a catalyst for turning around or accelerating the crash.

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