Esprit Opens The Curtain Of Self Redemption

In the capital market, in 2007, the share price of Si Jie went down to HK $133 and began to fall.

"The death of the soul and the subsequent financial crisis have hurt Esprit greatly, and the position of the mainland market is becoming more and more important."

Li Ming said.

In September 2010, Esprit has said that in the next 5 years, Esprit stores in the mainland will increase by 83% to 1700 and double the sales volume of the company.

However, in the following year's September earnings report, as of the end of June, Esprit net profit fell 98% over the same period, which is the 3 consecutive year of profit decline in the brand.

It is this unprecedented decline that pushed Esprit onto the road of self redemption. In Li Ming's words, "if we don't act again, the consequences will be hard to tell."

A few weeks after the release of the earnings report, van der Sr, the former president of SG global, launched a series of brand revitalization plans in a high-profile way, including investing HK $18 billion 500 million in the next 4 years to save the Esprit brand.

Specific contents include: reshaping the brand, rationalizing its European business (withdrawing from the retail market in Spain, Denmark and Sweden), selling its continuously losing North American business, and further advancing to the mainland.

In China, the implementation of this big plan fell on Li Guanyi.

In November 2011, Li Guanyi, former vice president of Adidas, served as Esprit CEO in China.

She has worked in Adidas for 11 years, and has won the title of "Greater China 2007 to 2008 best growth area" for Adidas northern district.

As soon as Li Guanyi took office, he announced that the goal in China is doubling sales of Esprit in the mainland market in the next 5 years, and is expected to reach HK $6 billion, and the operating sales point will also increase to about 1900.

However, following a series of high-level personnel changes, the whole plan changed direction.

In December 2011, Zhou Fuan, executive director and chief financial officer (CFO), resigned. In February 2012, Francesco Trapani, the independent non-executive director, resigned. 4 months later, CEO Hans-Joachim and Korber chairman resigned.

At this point, half of the 8 members of the board chose to leave when the pformation plan was announced.

For this, I have served several times.

Senior executive Li Ming said that although the departure of executives in theory does not give the company a big shake, it will affect many specific control points.

"

Some of them are difficult to become a quantitative standard module. These points need to be controlled artificially. If the middle point can not be butted with the upper level, then the control point is invalid, which will definitely affect the implementation of the whole plan.

He further stressed: "especially in the short term, several senior executives have to leave, and Esprit is facing a huge plan."

Immediate impact, especially in

This is particularly evident.

Public information shows that in the 2011-2013 year of the year, Esprit's sales in China fell three times: HK $2 billion 670 million, HK $2 billion 587 million and HK $2 billion 410 million.

As of December 31st last year, Esprit stores in China had a total of 553 (321 battalions, 232), far from the original 1900 targets.

When someone leaves, someone takes over.

In September 2012, Sijie globe invited Jose Manuel Martinez Gutierrez from Inditex group (ZARA's parent company) as its chief executive officer.

Six months later, three former Inditex executives were dug up by Si Jie.

After high-level personnel exchange, everything has changed.

In May 2013, Ma Sith abolished the Esprit's 18 billion 500 million Hong Kong dollar plan and proposed a new goal of frugality.

The time span of the plan is 2014-2016 years, with effective regulation cost as the main consideration, and the expected operating expense will be reduced by at least 50%.

"In terms of self redemption, Esprit is quite positive and has been trying, but it is best not to give up halfway, otherwise the process will be very long."

A long-term concern about fashion apparel industry to the new financial reporter said.