The Shoe Brand Nine West Is In Big Trouble.

According to the world clothing shoes and hats net, the Chinese name is "nine Xi".

brand

I've had a lot of trouble lately.

It is reported that in recent years, this shoe that has sprouted everywhere in shopping malls and shopping malls is everywhere.

There were 227 stores in the United States ten years ago, and now only 25 of them are missing. Unfortunately, the last 25 will soon be closed.

The American brand Nine West, founded in 1978, reached its peak in 2006.

In September 12, 2006, Viviennne Westwood, the mother of punk in the fashion world, appeared in the pioneer square of Messi's department store, not to promote the same name brand or any of her own radical ideas. Instead, it promoted the series of cooperative shoes that she launched with Nine West. Yes, ten years ago, Nine West had joined the high-end brands. With the appeal of the empress dowager, the middle and low shoe shoe brand won a big market reaction.

According to New York Post, its group Jones Apparel has 796 stores, including Nine West's retail business.

In 2007, the proportion of Nine West in the women's shoes market had reached 10..4%. At that time, CEO Cohen Andrew also said at the hearing of the Federal Trade Commission that the competition faced by distributors was fierce.

Just now can not be the same day.

In three to five years, there will be great changes in the retail market. If the brand is sensitive to the market and the response speed is fast, there will be no big problem. But Nine West has obviously become the group that has been eliminated by the market.

This market research has long been predicted. The latest customer loyalty report released by InMarket this spring shows that Nine West ranks the bottom, which means that the next brand that closes up or downsizing is mass Nine West.

In fact, the downhill of Nine West began to accelerate three years ago.

In April 2014, private Holdings Company Sycamore bought the entire Jones group, including Nine West, at a price of 2 billion 200 million US dollars, and the 1 billion 700 million dollar debt owed by the brand as a result of the acquisition.

At that time, the deal was not favored by the market. As we all know, Sycamore private equity fund has always been fond of acquiring non-performing assets. Another typical example is A ropostale.

At that time, the latter had refused to liquidate Sycamore to repay their debts, but the act of financing had completely lost their autonomy and had to allow Sycamore to acquire the debt.

So Sycamore's acquisition of Nine West may be the beginning of the latter's doom.

Until last September, people familiar with the matter told reporters that Nine West had been approached by restructured company and proposed a proposal to reduce debt. Meanwhile, both the S & P and Moodie ratings agencies lowered the credit rating of the shoe retailer, and issued a warning statement that a weak business model and a decrease in sales may lead to a further downgrade.

The investment problem of Sycamore appeared at this time. They invest more in retail and consumer brands. Now, with the pfer of sales channels to the Internet, consumers are becoming more cautious about spending. This strategy is obviously not good for brands.

"Nine West has lost its leading position in the footwear and accessories market in the United States, and is likely to have a debt restructuring next year due to its debt and operational problems," a reporter quoted a report from S & P analysts.

As expected, in May this year, the company issued a press release that Nine West commissioned investment bank Lazard to assess the long-term asset restructuring.

It is worth noting that in addition to the brand can not keep pace with the pace of the market and management problems, experts also pointed out that Nine West has always relied on department stores to survive in the Chinese market. It is also a great hidden danger. As the traditional shopping malls are gradually abandoned by consumers, retailers can only slow down the decline in sales by lowering prices, but continuous price cuts make the growth of women's shoes such as Nine West more difficult.

Indeed, the problem of brand itself can not be ignored, but the overall market downturn is also exacerbated.

As early as 1994, Nine West has entered the Chinese market. After twenty years, the Brand Initiative has changed very little. In the past three years, the retail market in China has gone down sharply, showing its weakness. At the same time, the sports wind has begun to become popular, and the market of shoes has been squeezed repeatedly. "You may produce the best products in the world, but no one needs it."

Investment bank analysts said.

According to a person familiar with the matter, the headquarters of Nine West in Dongguan, China, has been dissolved.

Nine West's dilemma is also faced by Daphne in the past two years. The latter announced recently that it will join the US fashion trend brand OPENING CEREMONY to launch cross-border cooperation series, hoping to pass the crisis through active pformation.

More interesting reports, please pay attention to the world clothing shoes and hats net.