The List Of Famous Casual Wear Brands Listed In The US Death List Is Expected To Disappear.

< p > every year, the 24/7 Wall Street financial news will launch a "death list", which lists the brands that are expected to disappear in the coming year.

The famous American teenager who has 27 years of history, < a href= "http://sjfzxm.com/news/index_c.asp" > casual wear brand < /a > Aeropostale, appears on this year's list.

Meanwhile, Love Culture of Brand Company, the US women's clothing company, declared bankruptcy. The company official said it would gradually close down the loss shop and seek the possibility of selling the brand.

Not only that, since last year, the news of the bankruptcy of American clothing and department stores has been exposed frequently, such as Ashley Stewart, Coldwater Creek and Dots.

Even the red light luxury brands Michael Kors and Coach also came to share the news of falling share prices and layoffs.

What's wrong with the US brand? Most of the reasons for the comprehensive analysis are the mistakes made by hasty adjustment or impatience, and the future of the brand.

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< p > < strong > hurry to close shop may not be able to turn losses into profits > /strong > /p >

< p > it is reported that Aeropostale has suffered losses for 4 consecutive quarters. As of November 2013, Aeropostale had lost 25 million 600 thousand US dollars.

In the same period, its operating capital declined from US $193 million 900 thousand in the previous quarter to US $166 million 700 thousand, and the cash flow dropped from US $100 million 300 thousand to US $68 million.

Over the past year, Aeropostale shares fell more than 50.3%, the lowest level in nearly 10 years.

The brand is being replaced by cheaper and more fashionable brands.

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< p > Aeropostale was once the most popular youth entertainment in the United States, a href= "http://sjfzxm.com/news/index_c.asp" > clothing brand < /a >. With low price and fashionable design, it once dominated the clothing market of young people in the United States.

The company has more than 600 chain stores in the United States.

But with the rise of fast fashion brands, Aeropostale's position in the youth market has gone from bad to worse.

In particular, the competitor Forever 21 easily tied up the hearts of many women at a lower price and a wide variety of commodities, which made the profit margins of Aeropostale greatly squeezed.

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< p > even so, the fast fashion brand did not give Aeropostale a fatal blow. What really broke down the brand was its erroneous decision in haste to save its performance.

In March, Aeropostale borrowed $150 million from Private Equity Investment Firm Sycamore Partners to solve the problem of closing its 175 stores quickly.

The brand said it hoped to turn around some stores to make profits, but analysts did not think it was a matter of urgency.

"If we want to increase profit margins, we should shut down some of its stores and turn to online sales," Debwire analyst said.

But at present, Aeropostale is not well managed and underfunded, and hastily decided to close stores through mortgage loans will only make the brand in a dilemma.

Because brands need to rely on shops to apply for loans, while closing stores also means a decrease in collateral, and the loans they receive will be reduced correspondingly, which may result in insufficient loans and can not solve the problem of capital turnover.

In the long run, this will make the brand economy more unstable, and it will easily lead to a default on the loan and eventually lead to bankruptcy.

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< p > < strong > accelerating expansion is not equal to sacrifice value < /strong > /p >

< p > in recent two years, Michael Kors has developed rapidly and has become the world's hottest a href= "http://sjfzxm.com/news/index_c.asp" light luxury brand < /a >.

Recently, the Wall Street journal published articles worried that Michael Kors was eager to expand in the channel, thus affecting the brand quality.

The news sent Michael Kors's share price plummeting.

The reason why Wall Street published such an article is that the total revenue of Michael Kors in 2013/2014 fiscal year is US $3 billion 310 million 800 thousand. Although the brand is expanding rapidly and the number of new stores is increasing rapidly, its wholesale income has exceeded retail income.

This means that most of the brand's revenue comes from discounted goods or wholesale channels.

It is reported that the wholesale income share of Michael Kors is close to 48%, and discount stores account for about 1/3, and the wholesale channel and discount stores are counted together. The ratio of the total number and the number of full stores has reached 2: 1.

The industry believes that this is very dangerous for a brand. Because of the more discount outlets, consumers tend to buy goods only at discount stores, which will result in new products being unable to sell and brand profits declining, eventually resulting in market status.

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< p > Michael Kors was considered to be the second one from the beginning. The industry has been worried about its footsteps. In order to expand rapidly and ensure the miracle of growth, the product price is reduced and the brand positioning is reduced.

At the full price store, the company adopted a low price strategy to reduce the average selling price from $400 to $300 to raise revenue.

This move achieved good results only in the short term, and after the brand was repatriated to $400, the consumer was ruthlessly abandoned.

Despite the fact that the company is now spending a lot of money to upgrade its stores, it will not help.

Recently, the British media BOF revealed that Coach has cut more than 150 employees.

In June, Coach warned early in the 2014/2015 fiscal year that sales in North America, which accounts for 70% of the group's business, will continue to shrink significantly. It is expected that the comparable sales decline, including website revenue, will fall to 24%~29%, so the brand will close 70 North American stores.

Analysts believe that the light luxury brand is a very unique group. It is easy to expand itself because of a surge in sales, so as to accelerate the expansion in order to achieve greater success.

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