Strong By ZARA And H&M Extrusion Only Parent Company'S Profits Decreased By 41%

As the representative of "fragrant flowers in the wall", Danish well-known fashion company Bestseller A/S Only fashion group (hereinafter referred to as "bestseller") entered China in 1996 and opened the market with its four brands Only, Jack&Jones, Selected and Veromoda.

Bestseller has also been very successful in the field of electricity supplier. The reporter has reported its full channel experiment in China.

2015 Tmall double 11 that day, the total turnover volume of the group reached 520 million yuan, ranking first in the apparel group rankings.

Its Jack&Jones won second men's clothing category, while Only was the fourth category of women's clothing category.

It can be seen that the development of bestsellers in China's online and offline industry is in full swing.

However, under the pressure of fast fashion group such as ZARA parent company Inditex and H&M, the performance of the bestseller in the international market is not satisfactory.

In November 26th, bestseller released its annual report for fiscal 2014-2015.

According to this annual report, due to the lack of strict control over procurement activities and other reasons, the group's performance was not up to expectations, revenue grew by 8%, pre tax profits dropped by 41% to 134 million euros.

The journalist inquired about the relevant person in charge of the fashion designer in China, and got the reply that the data was not disclosed. In fact, China's performance did not appear in the bestseller's earnings report.

To this end, the reporter consulted Zhang Yanlai, a partner lawyer of Hangzhou Golden Road law firm. "Bestseller fashion (Tianjin) Co., Ltd. belongs to a limited company. Unlike listed companies, they must be disclosed according to law, and the contents disclosed are decided by themselves, and legally they are two independent entities."

Dilemma: bestseller encountered Waterloo

According to the financial report, in the 2014-2015 fiscal year ended July 31st, the income of 2 billion 930 million euros was recorded, which increased by 8% compared with the previous year, and the pre tax profit was 134 million euros.

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Anders Holch Povlsen, the group's chief executive, pointed out that the result was unsatisfactory. He said that it was bestsellers in the Middle East, Britain and Canada.

Scandinavia's market is also not satisfactory.

In contrast, the performance of the bestseller in central and southern Europe is pretty good.

In addition, high human and other operating costs and insufficient hedging against the strong dollar also affect its annual performance.

This result can also be seen from the newspaper's earnings in the past years.

In recent years, the international fast fashion brand market competition is more and more intense. In the 2013-2014 fiscal year, the total revenue of the sales volume increased slowly, only 5%, or about 2 billion 700 million yuan, and the pre tax profit was 228 million 200 thousand euros, an increase of 21%.

In the competition with H&M and ZARA's parent company Inditex, the sales of the two fast fashion giants were 9% and 8% respectively.

In Europe, the bestseller also suffered setbacks. In November 2014, under the background of a 50% drop in profits, the bestseller said it would close 10 stores in Europe. At that time, the European market accounted for 10% of the revenue of the group.

In the earlier 2012-2013 fiscal year, the total income of the recorded products was 2 billion 600 million euros, and the pre tax profit was 192 million 400 thousand euros.

Although there was a slight increase in performance, it did not meet the group's expectations. Anders Holch Povlsen pointed out in the earnings report that he was satisfied with the group's ability to obtain revenue growth in a highly competitive market with sales reduction as its main means.

He also said that he would increase investment in retail business, further streamline the supply chain to reduce production and operating costs, speed up the arrival of goods, and would focus on the design and development of core products.

Survival: widening the market and finding the route

In Europe, the market business is blocked, so that we can turn our attention to a broader space.

In September 2014, the women's wear brand Vero Moda, Noisy May and big size women's wear brand Junarose entered the US market. Vero Moda's international sales manager J e r me Rolland said in an interview with the US, the bestseller of the United States.

Based on medium and high-end department stores, and based on the successful experience of 11 years in the Canadian market.

Previously, the US market was responsible for the Canadian subsidiary.

Online is another power point for bestsellers, although Anders Holch Povlsen has repeatedly stressed that although China's business is not involved in the earnings report.

Business development.

In the summer of 2014, the online sales website of all its brands was sold, providing more than 25000 products and shipping to 12 European countries including Denmark, Spain and the United Kingdom, and Canada and the US market after that.

Anders Holch Povlsen explained in its 2013-2014 year earnings report that the bestseller will take the online business as an important part of the whole group, making the links between physical stores and online stores more smoothly and naturally, which will probably support the development of the global fabric.

In February 2015, the company launched the "Fit for Fight" internal operation and structure streamlining activities. Anders Holch Povlsen expects this approach to drive the pre tax profit in fiscal year 2016 to double to 268 million euros.