The Advantage Of Fast Fashion Differentiation Is Becoming Its Biggest Limitation.

At the end of November, Arcadia Group Ltd. releases its annual performance on time. However, Philip Green Philip Green said that 2015's performance will be announced after Christmas.

According to Verdict data from the Research Institute, the market share of Arcadia Group Ltd. in the UK, which is 42 billion 800 million pounds, has shrunk dramatically, from 6.3% in 2012 to 3.8% today.

Earlier, some sources even revealed that Philip Green Philip Green was open to selling Arcadia, but Philip Green Philip Green denied the sale rumors.

However, BHS's huge 571 million pension shortfall may cost Philip Green Philip Green. In fact, it is difficult for buyers to make a valuation of Arcadia Group Ltd. at present.

J. Crew and Topshop were considered the two most potential brands before, and the two were different from the fast fashion brands. They were more welcomed by the people who had a strong consumption capacity. However, the trend of the world was that the bad global economic situation and the proportion of consumers spending on fashion consumption were decreasing, and J. Crew and Topshop had been in the past.

The advantage of differentiation is becoming the biggest limitation. The higher price of fast fashion has caused the reversal of the status of the two brands.

Topshop parent company Arcadia Group Ltd. announced the delay in announcing its annual results. According to reports, the company chairman, Philip Green Philip Green, who was once again caught up in public opinion scandal due to the BHS bankruptcy scandal, said "no mood" to discuss Arcadia's performance.

Market participants believe that Arcadia, Group, which has Burton, Dorothy Perkins, Evans, Miss Selfridge, Topman, Topshop, Wallis and many other brands has been struggling. Otherwise, in the current situation of Philip Green, if the performance of the company is gratifying, it will be unable to wait to announce.

In 2002, the Philip Green Philip Green family acquired Arcadia Group Ltd. through Taveta Ltd's fund Taveta Investments. The group has been outstanding, especially the development of its Topshop brand.

In 2012, Arcadia Group Ltd. sold 25% shares to the US private Leonard Green & Partners, which made it worth 2 billion pounds.

However, sources have revealed that the Losangeles based private equity fund has reduced writedowns to its British fashion group.

Leonard Green & Partners's investment in Topshop's parent company was considered to be very good in 2012. In 2011, the private equity fund also purchased TPG J. LP with J. Capital Group Inc. with the TPG Capital LP of the fund company.

J. Crew and Topshop were considered the two most potential brands before, and the two were different from the fast fashion brands. They were more welcomed by the people who had a strong consumption capacity. However, the trend of the world's poor economic situation and the proportion of consumers spending on fashion consumption were decreasing. The advantages of J. Crew and Topshop before being differentiated from fast fashion are becoming their biggest limitations. The higher the price of fast fashion makes the status of the two big brands in the world.

The current situation of J. Crew is worse than that of Topshop. The continued slump of the US fashion group and the aggravation of its liabilities make the industry worried that it is only bankrupt.

Arcadia Group Ltd. has been held by Philip Green Philip Green's wife Tina Green holdings, and the Morocco nationality of Tina Green has been a blemish of the Philip Philip Green family, because this may help families to avoid tax.

The dilemma of Topshop and Arcadia Group Ltd. has long been a clue.

In the middle of last month, Arcadia Group Ltd. said it would deepen cooperation with Tesco PLC (TSCO:L), the largest retailer in the UK. In the future, it could open more Dorothy Perkins, Burton, Evans & Wallis brand stores in the group's supermarkets.

On Wednesday, Tesco PLC Tesco revealed at the press conference that by the end of this year, the group will open 26 Arcadia Group Ltd.'s brand stores in its supermarkets.

The cooperation between the two sides started last year and deepened cooperation. On the one hand, Tesco PLC Tesco wanted to introduce more brands to meet the needs of consumers, while Arcadia Group Ltd. had closed many licensed stores because of bankruptcy of department store BHS.

According to website data,

Under the dual pressure of intense and economic downturn, Arcadia Group Ltd. Ltd. recorded a 5.5% profit growth in the 2015 fiscal year ended August 29, 2015, but profits mainly benefited from the sale of loss department store BHS.

The sales performance of Arcadia Group Ltd. 2015 was rather weak in the financial year of the year.

The group's total sales in fiscal 2015 totaled 2 billion 69 million 300 thousand pounds, up 1.8% from the previous year's 2 billion 32 million.

During the period, the group's overall sales in the same store recorded a 0.7% decline, of which retail sales in the same store in the United Kingdom dropped by 0.9% compared to the same period last year, while in the 10 week of the 2016 new financial year ending in the 2015 fiscal year to the end of November 2015, the group's overall sales decline further expanded to 2.3%.

Under the sluggish sales, Arcadia Group Ltd. recorded an increase of 23.9% in fiscal year 2015, and its performance was excellent. Therefore, Arcadia Group Ltd. launched the "Buy Now, Pay Later" project, which is expected to continue to stimulate the growth of the business.

The company did not disclose the current proportion of electricity business, but the majority of the current public.

The company's electricity supplier's target share is 20%.

In addition, in the 2015 fiscal year ended August 29, 2015, Arcadia Group Ltd. had a pension deficit of 189 million 600 thousand.

For the current struggles of Topshop and Arcadia Group Ltd., analysts believe that the group has not invested enough to maintain the competitiveness of the brand, such as entering the huge Chinese market.

However, some analysts believe that if entering the Chinese market, huge investments will not only help Topshop to expand the market, but may further bring Arcadia Group Ltd. into the mire, and it is impossible to invest in the character of Philip Green Philip Green.

So far, Arcadia Group Ltd. and J. Crew have been involved in the development of the mainland market. On Thursday, there were even reports that Millard Mickey Drexler was looking for a successor to replace her J. Crew Group CEO CEO.

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