Can Esprit'S Full Access Road Be Blocked?

One or two weeks ago, the four national husbands of love and producer jumped rapidly, and the small programs that jumped up were also very hot. This week, they were all pushed down by the frog son in the circle of friends.

The explosive money will come faster and disappear faster, and maybe the next week's travel frog will be replaced by that.

Many articles are discussing how the marketing of these explosions can cut into the needs of female consumers.

In fact, one thing changes all the time.

Appealing to the old and the old, whether in the game or in the game.

Consumption is the same.

Inland

The three major brands Zara, H&M and

Nowadays, we are faced with a stronger demand from consumers - faster than before, and more emphasis on personalization.

It is a disaster for clothes brands that can not run in front of consumers, such as Esprit, which has a history of 50 years.

Si Jie global material loss is at most 980 million

According to the world clothing and shoes and hat nets, at the peak of Esprit, both domestic and international shopping malls can see its shape. Even stars such as Richie Ren and Fan Bingbing are seen shopping in Esprit. Many fashion media have listed them as one of the "middle class" wealth brands.

But in the past ten years, the position of Esprit has gone, and the share price of Esprit's parent company 00330-HK has dropped from 90.61 yuan to 4.08 yuan in the past ten years.

(Si Jie world stock price; screenshots from the Hong Kong Stock Exchange)

00330-HK announced that it would lose a net loss of HK $950 million to HK $980 million in the middle term, while the net profit of the company was HK $61 million in the same period last year (the same below). 24.

Si Jie world shares fell 16.18% today to 3.42 yuan.

The company attributed the loss to:

In short, it has been bad for China's business in recent years, so it has made a total impairment on goodwill and customer relationship. In the second quarter, revenue has declined, and the tax rate has been 5 million.

This scenario is very similar to 2015. The company expects a significant loss in the year ending June 2015.

The reason for the loss also means that the mainland business has been performing poorly for two consecutive years. The direct management of retail sales is weaker than expected. The goodwill of the remaining rights and interests of China's associated companies should be substantially reduced, or even the provision for closing stores and losses, and even the impairment of fixed assets, ranging from 2 billion 940 million to 3 billion 170 million yuan.

Watershed of 2008

Looking back at the 2008 fiscal year, the profits and profits of Si Jie world reached the peak of 37 billion 227 million yuan and 64.50 billion yuan respectively.

But since the financial crisis in 2008, the income of the global capital has been declining and profits are falling off cliff.

In the 2011 fiscal year, the profit attributable to corporate owners fell from 4 billion 226 million yuan in the same period last year to 79 million yuan.

In the 2013 fiscal year and 2015 fiscal year, the loss was 4 billion 388 million yuan and 3 billion 696 million yuan respectively.

Si Jie global revenue in fiscal year 2008-2017 (HK $million)

Si Jie global financial year 2008-2017 shareholders should account for profits / losses (unit: HK $1 million)

In the first ten years of 2008, there were not many fast fashion brands, and there was no comprehensive coverage of e-commerce channels. At that time, the business model of clothing brands was very simple, and the way to take part in ordering products was to hand over products to wholesalers for sale, or to open retail stores.

As long as stores can increase sales, the income has reached its peak in the 2008 fiscal year with the expansion of Si Jie world.

But after the financial crisis, everything changed.

The rise of vertical retailers such as electricity providers and similar Zara has been running through wholesale and retail channels to seize market share.

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As a former industry tycoon, pformation is easier said than done.

On the other side, the founder of Si Jie Xing, Li Li, is also Brigitte Lin's husband, who has been holding back for 2003-2010 years. In 2006, Xing Li resigned as Si Jie global.

It is reported that until 2012, Xing Li began to buy the world wide.

In October 12, 2017, a total of two daughters, 29 year old Xing Jiaqian and 20 year old Xing Ailin, were handed over to two daughters.

Can fast fashion still work?

In order to stop bleeding, the company found Ma haos as CEO and executive director of the company in 2012.

Ma Hao Si is from the Zara parent company Inditex SA, Yin Di textile company, and joined the Si Jie world before being the director of distribution and operation of Spanish Company.

Ma Si Hao joined in to reverse the goal set in the previous pformation plan and set up a "four year plan".

The biggest change that Ma Hao Si brings to Si Jie is the vertical mode similar to Zara. The core is simplifying the supply chain, fast selling product development, new marketing mode and so on.

At the end of the four year plan, the revenue of the global financial network in the 2017 fiscal year was 15 billion 942 million yuan, an annual decrease of 8.7%, a net profit of HK $67 million, an increase of 219% over the same period last year.

But now, is it impossible for the global express channel to reproduce the Zara fast fashion channel?

The first quarter revenue was 4 billion 8 million yuan, the annual decrease of 7.4% in local currency, which is the same as 7.7% of the total controllable area per annualized year.

In local currency terms, retail revenue decreased by 8.9% year-on-year, electronic stores grew by 1.2% year-on-year, and wholesale sales fell by 10.6% annually.

Compared with the fast fashion brand 06288-HK, the fast sales revenue rose by 16.7% to 617 billion 26 million yen in the first quarter of last November, and the net profit of shareholders rose by 12.7% to 78 billion 540 million yen, operating profit of 113 billion 901 million yen, up 28.6% over the same period last year.

The advantage of fast fashion should still be.

But in addition to "fast", another core competitiveness is the price. Liu well said in 2016 that the fast selling group will promote its business through the price reduction of UNIQLO.

Ryui Masa said: "consumers do not agree that new products are equal to high prices. The environment of fashion retailing is very difficult now. It is a mistake for companies to raise prices in this environment."

Si Jie universal can only speed up chasing, Ma Haus also once shouted "no time", we must accelerate the pformation.

It puts forward five main measures in the 2017 financial report, including brand aging, product upgrading, new generation channel, market scale and expansion, and cost reduction.

In the 2017 fiscal year, it spent five years in the year of fiscal year to reduce the number of retail outlets, reduce the wholesale locations, reduce promotional activities, reduce the price and give discount to wholesale partners, so that the company could achieve the goal of saving 1 billion yuan over 1 years ahead of schedule.

Since August 2017, Si Jie has been repurchasing shares of the company. Deng Yongyong, chief financial officer, said that the buyback was due to the fact that its share price had fallen too much earlier, and that it had decided to buy back.

The company's buyback is still ongoing, and today it is losing its share price.

Due to the strong seasonal nature of the global retail of general merchandise, generally speaking, the performance in the second half of the financial year is generally inferior to that in the first half of the year, and there is uncertainty in the profitability of the 17/18 fiscal year.

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