What Strategy Has Led To The Collapse Of J.Crew'S Business In Recent Years?

Eight years ago, J.Crew Because of the popularity of Michel Obama, the first lady of the United States, her reputation and its modern style and iconic products are very popular. Cardigan Become more and more known. But like the presidency of the United States, J.Crew's situation has changed.

J.Crew's latest quarterly report shows that its turnover has declined by 6.3% and its same store sales have fallen by 12%, which is the tenth consecutive quarterly decline in sales. In June 6th, the personnel structure of J.Crew had already seen great turbulence. J.Crew's CEO Millard Drexler announced that she would leave office. Neil J.Crew, Global Data Retail's general manager, told Business Insider: "J.Crew is almost on the verge of bankruptcy."

Drexler reflected on what caused J.Crew to lose its charisma. Earlier, he said in an interview with reporters: "I admit that I underestimated the speed of the development of digital media today, and did not find how technology subverted the retail industry. In the past, we only need to pay attention to brand design, and now we must also take account of social media and online channels. "

In addition to shifting the center of gravity to the digital media, Drexler also realized that he had another major mistake in Corporate Governance: "in the past few years, when consumers are increasingly seeking less money for higher quality goods, we have been raising prices. We overestimated us. brand This should be a price fixing, whether it's a mail order catalogue, an online store or a whole sale, which is a very big mistake. "

When the economic crisis reached its peak in 2008, J.Crew launched a more expensive sub line brand, J.Crew Collection. However, consumers were in a tight corner, willing to shop at discount stores, and J.Crew's high price would make customers lose a little.

In addition, J.Crew has been slow in the investment of e-commerce. In June 12th, J.Crew will "reinvent" its old sales tradition, the mail order catalogue.

None of the post-90s has heard of such sales, but it was once the most popular form of sales in the United States. When J.Crew was founded in 1983, the fashion kingdom was established by sending the latest product catalog to consumers.

However, according to the world clothing and shoe net, J.Crew executives said, "in the current digital media system, the printed catalogue is already outdated, so J.Crew intends to reduce its expenditure and invest more money into the digital media business."

After adjustment, J.Crew will reduce the total number of pages of the mailbox catalogue, and also introduce different versions of men's and women's, so as to more accurately and effectively target consumers on the ground.

At the moment, J.Crew is trying to adjust its business strategy through price cuts, making J.Crew's brand image more approachable. "We are changing back to what we should have been -- more comfortable and cost-effective." Drexler told reporters.

Drexler has been working for J.Crew for 14 years as one of the retail legend. "I plan to leave office for a long time. I think it's time to move on. Actually, I told the board a year ago that I was ready to quit." He told reporters.

In addition, J.Crew has recently laid off nearly 250 employees, frequent personnel turbulence and changes in strategic direction, do not know whether the status of J.Crew can be recovered.

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