JACK&JONES Frequent Shop No Longer Intends To Save The Electricity Providers Hidden Worries

"Double 11" is coming, and Jack Jones, who has refreshed sales records in Tmall for several years, will usher in another battle. But the beautiful online performance can not conceal the slow down of the entity business under JACK&JONES.

Although Jack Jones insists that Guan Guan belongs to normal business format adjustment, its downhill state has appeared in recent years.

　　 Store adjustment

"The Jack Jones store is quite large. Every time we go to Binjiang Road, we go there. We went there at the end of July, but we found it closed last week." Ms. Chen of Tianjin said to the new financial reporter. In her impression, the Jack Jones store located in the busy street of Binjiang Road pedestrian street in Tianjin is larger than that in the shopping mall, and the salesperson in the shop once told her that "there are many other shops in this shop that do not have the money, and the products are all the same."

According to the understanding of the new financial reporter, the store is currently being renovated. According to the poster, the next one will be another men's wear brand.

Several meters away from the store, there is a small shop of Jack Jones, which has only a few rows of clothes on the shelves, mostly discounted. The salesmen here confirmed to the new financial reporter: "the next big store was closed in August, and then moved here."

"Such a large shop, and the location is also better, a little shut off." Ms. Chen said.

Yang Jie, a former well-known menswear brand CEO, has told the new financial reporter: "if clothing companies open independent stores, profits will be very high when sales reach a certain equilibrium point, otherwise, if they are below the equilibrium point, they will be very serious." In his view, when a brand goes downhill, the general independent shop must be the first batch to be shut down, because "from the return on investment and operating profit, the impact of independent shops is the biggest."

For the closure of the store in Tianjin, the Jack Jones brand marketing officer of China's (Jack Jones parent company) explained to the new financial reporter: "closing shop is just a normal adjustment of format, not a typical or what can be represented."

In fact, Jack Jones's closing shop phenomenon is more than that.

According to public reports, at the end of June this year, the shops in the west of the clothing house in Hangzhou were closed, including ONLY and JACK&JONES on the first floor, VERO MODA and SELECTED on the two floor. Earlier, these brands were also evacuated from the third floor of the Mixc, Hangzhou.

The chief executive of the Hangzhou fashion district responded at the time, "no company will be willing to continue running the shops that are already in a state of loss". It has also been interpreted by the media as the pace of expansion of the shop, or even closing some stores with poor performance.

"Generally speaking, closing and opening new stores is normal. We can't say that a brand is slipping because of closing several stores." Wang Peng (alias), who had been exported to the Danish headquarters of the bestseller group, said to the new financial reporter. But he admits: "Jack Jones has been going downhill since 2006-2010 years after the hottest days in China, especially in 2013."

Publicly available data show that the total revenue of Bestseller bestseller fashion group (China parent company) in fiscal year 2012-2013 is 2 billion 600 million euros, and its pre tax profit is 192 million 400 thousand euros.

Its chief executive, Anders Holch Povlsen, said it was satisfied that the group was able to gain revenue growth in a highly competitive market with price reduction as the main means, but the growth rate failed to reach the ideal level, and the profitability was far from the group's expectations.

Old benchmarking

For Jack Jones, if he had not felt the brilliance of his past, it would be difficult to understand its current weakness.

In 1997, it entered the Chinese market. "At the very beginning, Jack Jones was also neither too warm nor too pale to describe it. It has also undergone five or six years of market incubation." Wang Peng recalls.

In his view, this is in line with the law of new brands entering the market. "In general, brand entry into a new market, including channel layout, supply chain, product development, and user confidence, is not possible for more than 5 years."

At that time, Jack Jones had an advantage in the design style of the product. Chinese consumers should be the first time to get to know the street culture represented by Jack Jones's men's clothing. Wang Peng thought this was a very important reason for Jack Jones's later popularity.

"At that time, Jack Jones's product style was really different from other brands. It was similar to the tide card at that time. The US and Esprit were not as good as it was. It was a bit like GXG, which has been rising in recent two years." In Wang Peng's view, Jack Jones's product style makes consumers refreshing. "To some extent, it has stolen some parts of the market like the American brand, but the demand for its products has been greatly released."

As a senior fan of Jack Jones, Ding Qi always remembered such a detail, which made him like this brand in that era. "The jeans of other brands are hung up with pants hooks. His house is hanging on something like a towel hook. It feels like it is coming out. At that time, I thought this exhibition was very attractive to me."

Wang Peng also admitted that in addition to the product design itself, Jack Jones had many unique features in store display and prop development. "At that time, other brands did not have the strong impact display mode of Jack Jones, so it still had some influence."

Soon, Jack Jones became a "strong" brand with its strong profitability. It occupies the best place in shopping malls and becomes a standard for large shopping malls.

"The outbreak began in 2006, and by 2010, Jack Jones reached its highest peak in China, with a high reputation and reputation." Yang Jie recalls. At that time, Yang Jie served as a CEO for a man's clothing brand, because he wanted to launch a sub brand for fashion young people, and his position was somewhat crossed with Jack Jones, so he began to pay attention to it.

Yang Jie recalled that at that time, Jack Jones's products were suitable for young people's pursuit of fashion and had certain design ability. Moreover, the terminal presentation mode of the product is very attractive. When we were operating the sub brand, we also dug several people from it to display, and we benefited greatly.

"At that time, many brands wanted to learn from all aspects, and in some ways, Jack Jones even became the benchmark of popular brands at that time." An insider told the new financial reporter.

Internal and external obstruction

Thirty years Hedong, thirty years Hexi.

"At the peak of Jack Jones in 2010, it can be said that it has no rivals. Even if ZARA came in, even if the mall did not give it a good location, its profitability would be very strong, and the users would still buy its products." Wang Peng said.

But things began to change after 2010. "Although there is growth in 2011 and 2012, the overall situation is not as good as before."

Today, Jack Jones has passed the most brilliant period, and the rapid change of the market has also faced it with great pressure.

From its own point of view, its product design has not been so popular. In Wang Peng's view, the target consumer group that Jack Jones is facing today has not changed. It is still a young man pursuing fashion trends, but the problem is that his product has not changed much. "The new generation of young people is not so sure about the style and design of its products, especially after 90's consumers are seeking more personalized and fashionable elements. Jack Jones's products are not changed according to the consumers' changes. This is very dangerous."

Yang Jie also believes that in recent years, the design of Jack Jones's products has been "worse than before". He said: "in design, people do not have you, you are very cattle, others have you and you have to have differentiation, but now Jack Jones is not as good as before in product development ability."

In addition to the factors of its own products, the entry of a large number of similar brands has eaten up Jack Jones's market. It has not outgrown the trend market.

In fact, after 2006, other popular fast fashion brands have entered China. ZARA, GAP, H&M, MUJI, C&A, too many competitors compete for the fashion market and begin to play the scale effect.

"When Jack Jones started the fire in 2006, other brands just started to enter, but Jack Jones had already gone through a period of market incubation, so other brands had not yet caught up. When other brands have passed the incubation period, Jack Jones has been threatened. Wang Peng said.

Moreover, for fast fashion brand consumers, their loyalty to the brand itself is not high. "At present, Jack Jones's products do not have much of their own unique elements. The price has no advantage compared with other brands. As long as C&A has something that Jack Jones is not attractive and attractive, people who spend many years on Jack Jones will buy C&A products, and there are so many options." The industry said, "this diversion is fatal to it."

In the shoes and clothing industry independent critic Ma Gang view, in addition to the increased competitiveness of the brand is relatively weakened, Jack Jones encountered the channel ceiling is also a problem.

According to him, unlike other fast fashion brands in the second tier cities, "now Jack Jones's shop has opened to the county seat, and it will be very difficult to go down to the next stage, so it is very difficult to pull up the business by continuing shop."

Electricity supplier redemption?

Compared with the actual situation of offline stores, Jack Jones's online performance has been thrived.

In October 15, 2009, Jack Jones formed a strategic partnership with Taobao and opened its only flagship online store in Taobao.

It is also from that year that Jack Jones began to participate in Tmall's annual "double 11" large-scale promotion, and repeatedly created the highest sales record of single store. In 2009, the single day's single store maximum sales record was 5 million yuan; in 2011, the sales of the same day exceeded 30 million yuan; in 2012 "double 11" total of 3 stores sold more than 100 million yuan, including the Jack Jones flagship store; in 2013, it created 172 million yuan, and clothing category ranked first.

In 2014, when the "double 11" arrived, Jack Jones brand marketing department staff said: "at present, all the energy of the company and this month's publicity are in the" double 11 ".

For the beautiful performance of online sales, Ma Gang believes that Jack Jones once again seized the opportunity to take the lead. "Its consumer groups are relatively young people, the main force of online shopping, so Jack Jones began to adapt to this change in consumption trends very early." In his view, now is the spanformation of the retail industry technology, many companies are trying to touch the net, put forward the O2O plan, but this process needs a relatively long time to verify, "even in the retail industry."