Michael Kors: Rapid Expansion Leads To Slower Growth

It is reported that in the past year,

The company's share price fell 34%.

According to Morgan Stanley's recent report, MK is the only independent retailer so far in the securities business that has not exceeded five years in the context of the overall strength of the apparel industry.

Its products are no longer the best single product.

Many of its problems can be attributed to one mistake: rapid expansion.

At present, there are 4133 stores in the world, including brand stores, department stores and

。

In 2013, the number of stores was only 2913.

The scale of the store has shocked the industry, and has also brought great harm to the brand. In the capital market, Michael Kors has also been questioned by investors and is not optimistic about its mode.

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Obviously, Adidas will face more challenges if it wants to "fast" and want to "fashion".

In addition, fashion brands such as GAP, H&M and Zara are launching sports product lines to increase competition for sports brands.

However, the advantages of Nike and Adidas brands in sports are far less than that of fashion brands.

And according to the current trend, sports seem to be the "big head", and sports attributes may be the core of fashion sports products.

Before fashion clothing brands are moving into sports, sports brands like Adidas and Puma have tried to move closer to fashion.

But they gradually found that in the product cycle, the sports brand is not up to two new brands Zara, H&M and so on every week. In terms of product design, their fashion smell is not as good as that of fashion brands.

Therefore, these sports brands that have gone to fashion can only return to sports awkwardly.

However, when the sports consumption market continues to be hot in recent years and sports fashion is becoming a hot trend, sports brand reflects their hesitant side.

In fact, although Puma, Adidas and other brands return to sports from fashionable sports, they do not mean giving up fashion sports.

After all, the positioning of the past years and the audience is hard to get rid of the relationship at once.

The latest example is that Adidas is moving closer to "fast fashion".

Recently, Adidas global business leader Glenn Bennett (Glenn Bennett), in an interview with Reuters, said the company is preparing to substantially shorten the product cycle and make "fast fashion" on some product categories.

"There is hardly a brand in the sporting goods industry that can be" fast ".

If we can do more quickly in the product cycle, it will occupy a great competitive advantage in the industry. "

Glenn Bennett said so.

All along, because sports products are more technical oriented, Nike, Adidas and other sports brands have a longer product cycle.

Take Adidas as an example, in its traditional business operation mode, a professional product from the initial design to the final sale on the shelves, the average product cycle is 18 months, and the shortest is 1 years.

Of course, rigorous technical design makes sports products more professional, which is not a bad thing.

But Adidas believes that they can do faster and better under the premise of ensuring product technology.

As early as the end of March, Mark Kim, President of Adidas North America, said that the company would supervise the efficiency of manufacturers and consider reducing the product cycle to half a year.

Two months later, Glenn Bennett not only proposed speeding up the product cycle, but also highlighted the word "fashion" on the basis of sports attributes.

The most famous "fast fashion" is clothing brands like H&M and Zara. They admire the trend of catching up with the season, and the speed of new products coming to stores is very fast.

Like Zara, the product cycle of the brand is about two weeks, and the frequency of display is more than two times a week.

Previous experience tells Adidas that it is almost impossible to catch up with the speed of Zara, so German brands chose the half year cycle of relative insurance.

But it still needs Adidas to make a lot of adjustment to the production process.

In this regard, Glenn Bennett said, because Adidas's clothing manufacturers have been around the world, accelerating the delivery process of the consumer market will be relatively easy.

However, the manufacturers of footwear products are mainly concentrated in Europe and the United States, and the Asian market will face great difficulties.

Adidas has chosen to go step by step.

In the plan to shorten the product cycle, the company will first try to use sports leisure series NEO as an attempt.

Glenn Bennett said that NEO's products tend to focus on sports, fashion and leisure life, and are more suitable for the concept of "fast fashion".

They plan to increase the automated production process of the manufacturer, and eventually shorten the cycle of the product to about 45 days.

Previously, NEO series has launched a leisure sports shoes Groove, because of its rich colourful color, the product is very popular.

At that time, Adidas responded quickly, and immediately accelerated the production process to cope with the huge market demand, making the seasonal sports shoes get three times more than expected.

This makes Adidas firmly believe that as long as we invest a little in the production process, the seasonal fashion products of NEO series can greatly increase profits.

"You can imagine that if the sales speed is increased to more than three times, and the products will not be discounted during the season, we will sell them at full price, which may increase sales of tens of millions of dollars."

Glenn Bennett said.

In addition, NEO sports fashion series has always been the main force of Adidas's revenue, and its brand has confidence in its fashion smell and product design.

Therefore, Glenn Bennett stated that under the "fast fashion" strategy, the sales target of the NEO Series in 2015 was US $1 billion.

"In order to achieve this goal, we will put the production process in the major consumer markets as close as possible to our consumers, but the overall production order will not change significantly."

Glenn Bennett explained.

Also put forward to "fashion" sports brand and Nike.

In order to attract more female customers, in March this year, Nike announced that it would invest more fashion elements in the design of women's clothing than the previous "fairy wind" sports skirt.

Nike's intentions are obvious, so that these young women will use Nike equipment to fitness, and are determined to let them wear fashionable sportswear to go shopping, go to work and attend a friend's party.

However, Nike did not explicitly mention the need to speed up the production process.

Puma is also worthy of attention.

It has gone to fashion like Adidas, but now it is back to the sport itself.

However, it is also a German brand, and it is not intended to abandon sport fashion.

It signed the pop music star Rihanna as creative director of women's products in December last year. Besides paying attention to women's products, inviting pop stars to serve themselves is a fashion. This brand is likely to explore and exert itself in the field of sports and fashion.