JEANSWEST'S Performance Fell 17% Last Year, The Biggest Hit In The Low Tier Cities.

As of the end of fiscal year 2017, JEANSWEST had operated 1298 stores, a net decrease of 270 compared with 2016, including 919 franchise stores and a 202 decrease in the same period.

JEANSWEST (Jeanswest), which has repeatedly shut down, is still unable to see the dawn of a rebound.

Recently, JEANSWEST's Glorious Sun Enterprises Ltd. has released its 2017 performance report. During the period, the group realized HK $2 billion 730 million Hong Kong dollars, down 4.37% compared to the same period last year, operating profit of HK $101 million 600 thousand, down 18.8% from HK $125 million 100 thousand in the same period last year, and gross profit of HK $885 million 200 thousand, a 3.3% decrease compared with the same period last year.

Among them, the total retail sales of JEANSWEST based in China amounted to HK $1 billion 608 million, down 16.71% from the same period last year.

Sunrise group was founded in 1974, from an early manufacture.

Small processing plants are mainly developed.

The center is a diversified multinational enterprise whose business scope includes trade, retail, apparel production, real estate and financial investment.

The group has wholesale and retail business in China and Australia, and its main brand is JEANSWEST.

But in recent years, Australia's performance has been losing money and hard to boost. In April 2017, the group sold the JEANSWEST business in Australia and New Zealand to the group of directors and major shareholder Yang Zhao and Yang Xun brothers owned by Howsea Limited Co., Ltd., which was completed in July 1st of that year.

At present, the retail business dominated by the Chinese market accounts for about 58.83 of the total sales volume of the group, of which the mainland business is still dominated by JEANSWEST brand.

In the earnings report, sunrise group said that the fierce competition in mainland garment retail and the change of the electricity supplier's environment were the main reasons for the decline of JEANSWEST's brand performance.

With the improvement of macro-economy and the gradual increase of retail market, domestic garment retailing

Competition is intensifying.

According to the data of foresight Industry Research Institute, the number of Garment Retailing Enterprises in China has been increasing continuously for 2010-2017 years. It is expected that the number of Garment Retailing Enterprises in China will reach 3400 in 2017, and the competition among industries will be fierce.

The rapid development of the retail channel of electric business has also seriously affected the sales performance of JEANSWEST's physical stores.

According to sun rising group, the rapid growth of the electricity supplier has greatly affected the market share of the entity store, especially for JEANSWEST's three or four tier cities.

Although the group has launched a relatively flexible business model such as joint ventures and tried to stabilize franchisees, it has not yet completed its performance goals set at the beginning of the year.

In order to reverse the decline of JEANSWEST's performance, the group also tried to reform through closing down the loss stores and strengthening the channel of e-commerce.

As of the end of fiscal year 2017, JEANSWEST had operated 1298 stores, a net decrease of 270 compared with 2016, including 919 franchise stores and a 202 decrease in the same period.

While reducing the number of offline stores, the group set up "JEANSWEST electric and trade branch" to separate the online business, enabling the shop to have more autonomy in selling mainstream products and online monopoly Series in addition to assisting physical stores to handle seasonal goods.

At present, the amount of online sales has accounted for 23.68% of the total sales of JEANSWEST in mainland China in 2017.

In addition to the closing of the stores, the Asahi group plans to expand the franchise business in the form of "joint venture" and so on in the year of 2018.