The Biggest Burden Of L Brands Of Wei Mi Cheng Parent Company

According to the world clothing shoes and hats net, recently,

parent company

Issued December 2017 sales performance and annual profit warning.

Last December, L Brands's same store sales increased by 1%, while sales increased 3% to 2 billion 516 million US dollars over the same period, of which the profit margins were significantly lower than last year, while the same store sales recorded a 1% decline.

After the announcement of the earnings report, L Brands shares fell 15.49% on the same day, the biggest decline in nearly a year, and the market value evaporated about $2 billion.

Insiders said that this L Brands issued a profit warning once again confirms that it has become the biggest burden of the group.

Wei said it is readjusting its brand core products.

In the announcement, swimming and

The withdrawal of categories led to 3 and 5 percentage points decline in company and confidential sales respectively.

In December 2017, the company's net sales amounted to US $2 billion 516 million, an increase of 3% over the same period last year, representing an increase of 1% in sales.

Meanwhile, in the three quarter of 2017, the company's sales volume was $3 billion 840 million, down 11% compared with the same period last year. The same store sales decreased by 4% compared with the same period last year, and the sales of the main brand in the same month fell by 13%.

In response, Jan Singer, the chief executive of the company, responded that it is now trying to readjust its core products and accelerate its upgrading and upgrading.

In fact, the downturn in Wei has been going on for a long time. Since the end of 2016, the swimsuit and garment business began to fall, and its same store sales fell for 12 consecutive months. After a 2% increase in 10 last year, it immediately resumed a downward trend.

The US consumers' willingness to buy their goods has shrunk, and the new strategy seems to have little effect.

Seeking new growth points to test the Chinese online market

In order to find new growth points, China has seen new business opportunities in the Chinese women's underwear market worth more than 20 billion euros in recent years.

In order to attract the attention of Chinese consumers, China launched its first supermodel Liu Wen in 2009.

In 2016, it invited He Sui, Liu Wen, Xi Mengyao and Sui Xiaowen 4 Chinese supermodels, and set up the Chinese wind unit in particular. However, they were questioned by consumers and the media.

In November of the same year, Wei entered Tmall to test the Chinese market through the electricity supplier channel.

However, some analysts point out that it seems that the complexity of the entry into the mainland market is far from being valued.

Earnings data show that at present, there are only 5 stores in China.

Shen Yong, a real marketing marketing expert, said in an interview with reporters, "to enter the Chinese market, the first thing is to have an in-depth understanding of the environment and culture of the Chinese market, especially the economic development.

In fact, the women's underwear market is not in the first tier cities, the largest market and the strong purchasing power in China's second tier, three tier or even county-level cities. If we want to continue to do the Chinese market in the future, we should first adjust the product structure, product price and product channel from three aspects.

In addition, the price positioning should be matched with the consumption level of the purchasing population, so as to make products with good quality and cost-effective, which is what consumers need.

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