Hot Spots: What Clothing Brands Are Following The Mistakes Of Lining?

Over the past few years, as foreign fast moving brands have entered the Chinese market one after another, local brands are facing the extreme situation that they are either crushed or crushed by their brands.

Local sports brand

It was one of those tycoons who had not been able to make timely changes and focused on short-term gains.

Even if Lining succeeds in turning the losses in 2015, now that Lining is no longer the same as Lining, he is not willing to be a low-end brand when he sprints high-end brands. After returning to the main cost performance, Lining brand has not been recognized by the Millennials.

Then what other clothing brands are following Lining's mistakes?

Metersbonwe

According to the 2015 annual performance Bulletin released by Smith Barney fashion, in addition to Chairman Zhou Chengjian's pformation decision, the United States has ushered in its first loss in seven years, and its net profit plunged 396%, a loss of 431 million yuan.

The company's main garment business revenue has declined continuously since 2011. However, the focus of management has been placed on the "App" pattern of clothing matching, which is estimated to have invested a lot. However, the registered user scale is only 9 million, and the number of daily live users announced is 300 thousand, which can only be said to be small and beautiful.

In addition, last year, the US bond increased by 9 billion yuan, of which 6 billion yuan claimed to be O2O, but only about 1 billion 200 million actually invested.

Giordano

In March 3rd, Giordano released its 2015 earnings report. Its annual sales volume was HK $5 billion 381 million, down 3% compared to the same period last year. Net profit was HK $426 million, an increase of 4% over the same period last year. However, net profit growth mainly came from closing most of the loss shops instead of improving business efficiency, so Giordano itself has fallen into a downturn from the company itself.

Giordano has launched cheap brand BeauMonde (BM) and high-end leisure brand "EULA" in order to save its performance. However, due to the low acceptance of the market, EULA has stopped operation and BM is still in a state of loss.

Coupled with the lack of brand investment brought about by the continued downturn in revenue, Giordano's decline seems to have become a foregone conclusion.

Esprit

Esprit, which swept the country in 90s, is now in the cold. Even in China's main cities, it is hard to see its stores.

This decline began in 2011 and has been going on this year. Judging from the recent earnings report of Esprit's parent company, the company suffered a huge loss of HK $238 million in the past six months.

Fast fashion brands such as ZARA, H&M and UNIQLO shorten the supply chain cycle of traditional fashion brands to a month or even a few weeks, and quickly consume the market share of traditional fast fashion brands such as Esprit.

Even before last year's top Zara Jose Manuel Martinez Gutierrez was introduced to Esprit for large-scale change, its turnover continued to decline.