What'S The Trick Of Not Taking The High-End J.Crew?

Recently, the US apparel brand J.Crew released its third quarter earnings report.

The situation is not optimistic, with a net loss of up to US $760 million.

Earlier, the brand abandoned the high-end route because of poor sales, and opened chain stores with low price.

In the past 10 years, J.Crew has experienced several ups and downs and group direction adjustment, but it seems that every adjustment effect and duration are not satisfactory.

According to the financial report, in the three quarter, J.Crew group's same store sales plunged 11%, compared with a 2% decline in the same period last year.

The sharp fall in the same store sales led the group's three quarter revenue to decline from 6.5% to $619 million from $655 million a year ago.

Among them, the group's main source of income is the J.Crew brand.

Plunged by 13%, and revenue fell 8.6% to 527 million dollars from $576 million a year ago.

The Madewell brand revenue increased by 13.8% to 78 million 683 thousand US dollars, compared with $69 million 154 thousand in the same period last year, and 1% in the same store.

"There is no doubt that most of the fashion retailers are experiencing dramatic changes," Mickey Drexler, President and chief executive officer, said in a conference call.

However, I can only speak for my business, and we are capable of achieving it at a higher level, but the results of the current performance are still not what we want.

Earlier, the group announced that it would reduce its input and publicity to its high-end brand J.Crew Collection.

In addition to emphasizing the classic style again, J.Crew has developed a brand new low terminal brand J.Crew Mercantile. Drexler said that 8 J.Crew Mercantile stores will be opened in the year.

In order to reduce unsalable inventory, the J.Crew brand brand also plans to open 21 discount factory stores this year.

In June, J.Crew also cut its 10%.

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But from the current earnings report, it seems that the strategy of not taking the high-end route to cheaper strategy seems a little ineffective.

Drexler's strategy was a great success.

By the beginning of November 2004, the size of the $500 cashmere coat had been broken off, and many other products were sold out.

"Mickey brought J. Crew back to the right track."

Janet Kloppenburg, an analyst, said: "high-quality, fashionable American casual wear is also the highlight of the classic."

Subsequently, the brand was officially under the leadership of its creative director, Jenna Lyons, in the direction of high-end fashion: she brought the brand to the fashion week of New York and released the J.Crew Collection.

In the past few years, J.Crew has attracted many fashion blogs, and its fans even include the first lady of the United States, Michel Obama and Anna Wintour.

At present, the group has gradually reduced its investment in high-end brands, but in the past, the achievement of J.Crew is a strategy for developing high-end lines.

In 2003,

As chief executive of J.Crew, he began to save J.Crew, which began to decline at that time.

After taking office, the strategy adopted by Drexler is to preserve the details of the J.Crew college style and upgrade the design details.

J.Crew's target customers are customers who are already not satisfied with the Gap foundation and want to be more fashionable but cheaper than Ralph Lauren.

To this end, Drexler emphasizes eye catching details, such as unlined lining and tailoring, to bring familiar styles to life.

At the same time, Drexler has launched some brands such as Prada (Prada) and Coach to produce J. Crew's products, and invest more in high-end products.

In the fall of 2004, J. Crew first launched a man's cashmere jacket priced at $500.