Sonia Rykiel Will Reposition The Main Line Brand

France

Queen Sonia Rykiel will relocate the main line.

Sonia Rykiel, closing the secondary line Sonia by Sonia Rykiel, layoffs 1/4.

In a statement, the company said: "refocusing the company's resources on the main line will help to strengthen distribution channels and adapt to changes."

Sonia Rykiel's CEO Eric Langon said that the continuous economic crisis in Russia, the reduction of consumer spending in Asia, and the subsequent impact of terrorist incidents in Paris and Europe have greatly affected the company.

These conditions block the brand's Renaissance under the leadership of art director Julie de Libran.

The Julie de Libran that joined Sonia Rykiel in 2014 was Marc Jacobs in Louis Vuitton.

One of the deputy.

Last year, the turnover of Sonia Rykiel grew by 3% over the same period last year, the first increase since 2008.

Eric Langon said: "this level of turnover growth is too small to ensure the sustainable growth of brands and the development of future activities.

Unfortunately, the economic situation is still complex, and 2016 is not optimistic.

I hope this year's sales have gone up. "

He disclosed that as of now, the brand retail network sales fell 1% compared to the same period.

Eric Langon also stressed that management fully supports Julie de Libran, and the designer pays tribute to the brand founder Sonia Rykiel in the latest series with colorful works.

In August of this year, Sonia Rykiel died after fighting with Parkinson for many years.

(above: Sonia Rykiel 2017 spring summer series)

Sonia Rykiel was once one of the few French fashion brands that remained independent.

In 2012, the founder family sold 80% of the company's shares to Fung Brands, the remaining acquiring company stake in the acquiring company earlier this year.

Eric Langon said that since 2013, there has been a continuous loss of Sonia Rykiel, and the brand's new strategy is to return to profitability in 2019.

"The most important thing for the brand is to reflect and revive."

The brand currently has 330 employees and plans to lay off 79 people from the design studio, logistics and Distribution Department.

The company informed employees representatives in October 19th and will provide support and training for laid-off workers.

By the end of 2017, the company will close most of the Sonia by Sonia Rykiel stores, which currently own four independent stores and four department stores.

The company plans to reduce product prices.

Eric Langon said: "Sonia by Sonia Rykiel did not achieve the expected profit target.

We are using Sonia Rykiel product line to attract new customers.

Expanding the scope of service and adjusting to a more reasonable price for Sonia Rykiel is essential to speed up and expand (attracting new customers).

Eric Langon said that the brand has lowered some key categories such as knitted sweaters in the autumn and winter 2016.

"It turns out that this strategy is effective."

In addition, the company is considering adjusting children's clothing product line Rykiel Enfant.

Eric Langon is currently looking for partners for this internally produced product line to jointly produce and distribute products.

Russia is an important market for Rykiel Enfant, and wholesale sales account for more than 1/4 of total sales.

At the same time, the company is negotiating with the long-term home product partner Omilis to renew the contract, which was bought by Soleanne last year.

Electricity supplier is an important part of the future development of Sonia Rykiel.

The company plans to extend its current business in the US and Europe to Australia.

Eric Langon is still trying to buy water.

"A long supply cycle business model is not suitable for the current changeable situation. I am working with partners including wholesale customers to find solutions, which will help us develop together and find new ways to share risks."