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Behind The Decline Of French Fashion Retailers, Iger: Soul Figures Leave

2014/8/11 11:29:00 36

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French Clothing Retailer Igg Achievement Soul Leave

In the past, the performance of China's P has contributed greatly to the whole group.

However, with the emergence of large-scale personnel changes and brand aging, AGG has become a "drag" in China.

P, a nearly 100 year old French clothing retailer, has been declining in its performance in China.

/strong > a > href= > http://sjfzxm.com/news/index_x.asp > change > /a > has begun, but the result is too early to decide.

achievements drag behind

According to the results announcement issued by AGG apparel retail group in July, sales in China in the two quarter of this year were 69 million euros, or 5.6%, exceeding the 2.2% decline in the same period last year.

in sharp contrast to China's data, the sales volume of the group in the two quarter was 271 million 700 thousand euros, up from 263 million 200 thousand euros in the same period last year, showing an increase of 3.2%.

Among them, the European market continued to grow to 202 million 400 thousand euros, an increase of 6.7%.

"about sixty million" a href= "http://sjfzxm.com/news/index_x.asp" > Sales < /a > the amount is really miserable, "Wang Jun (a pseudonym) told the new financial reporter.

He is one of the top executives in China.

Although P has been away for many years, "I often pay close attention to IgG, and his work experience plays an important role in my career."

According to his recollection, during the most prosperous era (from 1999 to 2007), "the performance of our region in China is two digit growth. At that time, the profitability of France was not very strong. The development of the Chinese market made up for the achievements of Europe, but now the situation is just the opposite."

Wang Jun regretted this.

P has always been an important part of the Chinese market in the whole group.

In 1994, the French IgG group set up a wholly owned branch of Shanghai British model Clothing Co., Ltd. (IgG China), and French Chinese Liu Xunpo opened the first store in Shanghai in 1995.

As of June 30, 2014, the agge group had 4246 branches in the world, of which 3083 were in China.

looking at the financial data of the agge group over the years, we can see that the turnover in China accounts for about 1/3 of the total turnover of the group.

In AGG's headquarters, financial data and business introductions are also analyzed in China.

"P > P" in March 2009, Pierre Pilchior, the founder of the 73 year old AGG group, told the media in Shanghai that "the demand for the Chinese clothing market is still very strong, and we will increase our investment."

In his mind, "the Chinese market is very big."

P, however, 3 years later, business in China began to decline continuously. The group also decided to close some shops in China to reduce losses.

soul characters leave /p >

for AI China, its soul is Liu Xunpo, the illegal Chinese.

From the first shop opened in Shanghai, China in 1995, and left in 2008, Wang Jun seems to have done a great job for Liu Xunpo in China.

according to Wang Jun, because of the origin of the brand, Liu Xunpo took the brand to China in 1995.

Although the headquarters of France sent many experts to guide, involving products, retail management, logistics and other aspects, but Liu sun Po still belongs to the soul.

Wang Jun, who joined in the most prosperous period of the age of P, served nearly 4 years. His biggest feeling was "it is a real retail companies, and many things are not affected by the outside world."

He believes that this is related to Liu Xunpo's control over the development direction of AGG and his insistence on strategy.

At P, some strategies were not fully recognized in the industry, such as discounts.

Although the market situation is good at that time, the products in different regions will be restricted in terms of trial sale.

"We will keep track of the products on the line for several weeks, observe the dynamic inventory turnover days, and if they fail to meet expectations, they will be disposed of quickly."

Wang Jun admits that such a fast discount will do some harm to the brand, but "agge controls every link in the entire supply chain well, so it will be very active at the end of the season."

Therefore, "those years from the actual business performance, whether profit or end of the quarter inventory data, Iger's business performance is still relatively healthy."

in addition to Liu Xunpo's own strategic vision, Wang Jun appreciates Liu's strong team of strong execution gradually.

According to his recollection, the team is basically Chinese, "whether the products, logistics requirements or market promotion and retail terminals that are followed in the market are all playing a role in this market."

Wang Jun believes that the team that Liu Xunpo cultivated is crucial to the development of the brand in China, and has completely gone to France.

After four or five years of exploration and adjustment, "P" began to grow in the Chinese market since 1999, and has reached a scale in 2003, and the development after 2003 has been relatively smooth.

Wang Jun said.

the change originated in a change in 2007. Wang Jun called it "abnormal personnel changes".

So far, no reports about the incident have been found in the media because "public relations."

Wang Jun does not disclose the specific details of the matter. He only said, "there are disputes about management and the changes in ownership and management rights. There are public hatred and some other companies. It is very complicated."

In short, "the impact on the company is great."

Wang Jun still insists that if the incident had not started from a private point of view, then the development of P in China would not be so passive.

Speaking of these, he expressed regret.

the most direct result of that incident was Liu Xunpo's departure.

Wang Jun introduced an internal conference for suppliers and shopping malls during the handover. He clearly remembered that "the location was in the Bund 18, and the chairman of the headquarters also expressed thanks to Liu Xunpo."

Liu Xunpo P officially left in 2008. Since then, CEO in China has been paid by Xin Xin.

Wang Jun also took the initiative to express his resignation in the personnel changes. At the same time, most of Liu Xunpo's team from 1995 to 1999 also chose to leave.

"The product department is relatively stable, but after Liu Xunpo left, the mentality of the whole thing is different."

he thanked him for his years of work experience, but he regretted that he chose to leave, though he did not regret it. "Staying behind will not lead to a good result, because you can't change that situation."

After P took over in 2007, the performance of IgG in China still had a momentum of upward development. But last year, China's "proposal" supplier's discounts had affected the brand, and some suppliers left.

in Wang Jun's view, although the market is not as big as the space it was ten years ago, the decision makers should look at the long-term interests of the company.

He believes that in recent years, the brand investment and market input of IgG in China has increased, but the effect is not obvious.

lost fast fashion > /strong > /p >

When p entered the Chinese market in 1995, the clothing retail industry in China has not yet formed a scale and climate.

According to Wang Jun, there was a brand like lady's house, but there was no absolute clothing brand.

Four or five years later, consumers increased and the overall external environment improved. "At that time, China did not choose too many clothing brands, and several brands could develop well."

In his view, IgG did not have a particularly clear position in China. After several years of exploration, he became a lady dress.

Wang Jun said that when he joined IgG, he would pay more attention to the ranking of sales of similar brands such as Esprit, Vero Moda, Only and lady's house in various stores. "Sometimes they surpass us and we may lead."

In short, when everyone was a competitor, "it is a virtuous circle."

in the eyes of Ma Gang, an independent critic in the footwear industry, IgG represents a more authentic European and American fashion concept when he enters China. "This brand is scarce in the Chinese market."

He introduced the new financial reporter.

"But later, more famous foreign brands have entered China, which can replace its brand more and more, and its scarcity has disappeared."

Around P, around 2005, international fast fashion brands such as ZARA and H&M entered the Chinese market.

In fact, Liu Xunpo's efforts in international fast fashion brands were long expected.

"I first knew that ZARA also plated the Harvard case into Chinese for all our executives to see and tell us how successful the international brand of ZARA has been."

Wang Jun said.

2006, in the seventh phase of "the fast changing fashion of ZARA-" in the "decision making" column of the Shanghai TV station, Liu Xunpo was invited to talk with the guests about ZARA with the experts from three other consulting companies.

At that time, Liu said in the program, "there are special people in our company, constantly watching French magazines, British magazines, American magazines, and reading all the information online."

"P", as early as 2004, "he has been keenly aware of the impact of international fast fashion brands on the Chinese market, what kind of impact on China's retail industry and what challenges it will face in the future."

Wang Jun said.

, so from 2004 to 2007, China has made some changes, and has "made some arrangements" in dealing with fast fashion.

Specifically, the "internal supply chain, products and the overall rapid response mechanism."

however, the high level changes in 2007 made "some preparatory work we had done before was overturned, so it did not continue well."

2012, when CEO paid to ask the media how to look at the brand, he said, "I think agogue is fast fashion brand. The fast fashion I understand is that it can provide consumers with the fastest and latest fashion products.

We understand the needs of customers and provide the best choice at the fastest speed.

, he also pointed out that "we can do 12 new products at the same time, and go online at the shortest time. Fast fashion requires the whole company to run quickly. We are really fast fashion because we have such an internal system to support this."

but in the minds of consumers, there is still a certain distance between agogue and fast fashion.

"AGG is not a fast fashion. It's not as fast as ZARA, and the style is not so original. It was bought before college, and now it's more popular in UNIQLO and ZARA."

A Post-80 consumer told the new financial reporter.

in the view of Magang, the present age is not equal to the fast fashion painting.

"As soon as possible, we should cater to the young people's wearing habits to make changes in products and marketing."

the result of recombination is unknown .

The decline of P sales in China was started in 2013. It pointed out that there are difficulties in products and business models.

In this regard, a few months ago, Iger began a business restructuring plan.

On the one hand, the group hopes to speed up the clearance of commodity inventory in the past quarter, reduce personnel costs and make regional adjustments to the marketing structure so as to achieve the goal of stopping the decline of China's revenue in 2014.

On the other hand, the retail network, product supply and sales channel have also become the main points of its reform in China.

it is understood that IgG has closed 88 stores in the Chinese market in the first half of the year, while opening an independent store in the shopping center.

In addition, Igor's products are designed in Europe and America, and more widely distributed underwear series.

for the future direction of adjustment, Iger pointed out that the future needs to conform to the consumption diversity of the Chinese market, reduce the discount rate and operate on a new brand platform business. This platform should emphasize the foundation of the French brand and meet the needs of Chinese consumers.

although the second quarter sales decline in China has expanded from 5.6% in the same period last year to 5.6%, but it has slowed down compared with the 15.2% decline in the first quarter.

The group attributed this to a series of business restructuring and reform plans.

but in Magang's view, the relevant measures such as closing shop at IgG can solve the loss problem caused by the sluggish performance of individual shops, but this is not enough to support a healthy and healthy development in the future. "Because the real pressure on it is not the one or two shops, but the overall trend is not good and the pressure from competitors."

Wang Jun also agrees with P.

He believes that enterprises are now closing stores or changing their product structure to restructure or save themselves, but not every company that has done so has succeeded.

He admits that the attempt of E&Joy's brand is remarkable, but "if the overall direction of the company's operation is problematic, local performance will not be of great help to the whole company's current situation."

he is not optimistic about the current restructuring, "because no core change has been seen from the management level."

more importantly, "the domestic market trend is not very good, the industry itself is in a moderate growth period. Under such circumstances, no enterprise will have a big chance."

Therefore, Ma Gang also believes that if AGG doesn't have a big strategy to change the status quo, it will be less realistic in the short term.

"if it is better, or go down and aggravate, the market will eventually become polarized."

He said.