JEANSWEST Stores Reduce The Current Three Or Four Tier Cities

Senior people said that the domestic apparel retail industry has been highly saturated, and competition is intensifying.

Year-round discount

Brand JEANSWEST is disappearing at an average of one store per day.

However, the reduction in stores did not improve JEANSWEST's performance.

JEANSWEST's Glorious Sun Enterprises Ltd. recently released its 2017 performance report, showing that the group achieved HK $2 billion 730 million in revenue, down 4.37% from the same period last year, operating profit of HK $102 million, down 18.8% from HK $125 million in the same period last year, and gross profit of HK $885 million 200 thousand, a 3.3% decrease compared to 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.

The report also showed that as of the end of fiscal year 2017, JEANSWEST operates 1298 stores in China.

After combing, JEANSWEST has closed nearly 1000 stores in the past three years compared to 2284 stores at the end of 2014.

China Asahi group said that the fierce competition in mainland garment retail and the changes in the electricity supplier environment were the main reasons for the decline in JEANSWEST's brand performance.

Senior people said that the domestic apparel retail industry has been highly saturated, and competition is intensifying.

According to the data of foresight Industry Research Institute, the number of domestic garment retailing enterprises keeps increasing in 2010-2017 years. In 2017, the number of domestic garment retailing enterprises reached 3400, and the competition among industries was fierce.

While reducing the physical stores on the line, sunrise group set up the "JEANSWEST electricity and trade branch" last year to separate the e-commerce business from the fact that the online store has not only helped the entity store handle the seasonal goods, but also strengthened its autonomy in the mainstream products and online monopoly series.

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

Although the trend is good, the gross profit margin is meager, with only a slight profit.

In addition, JEANSWEST's franchising business has also been affected by the electricity supplier.

Financial reports show that in the past year, the management of sunrise group has continuously deepened the integration of JEANSWEST's retail network, streamlined the operation process and streamlined the personnel structure, but the development of franchising has been defeated.

Asahi group said, "the sales of franchised stores are mainly affected by the increasing popularity of electricity providers. Fortunately, management has timely launched various flexible and mutually beneficial modes such as joint venture schemes to stabilize the loss of franchisees, but the budgetary goals set at the beginning of this year have not been achieved."

In the case of a big closet, sunrise enterprises slashing about 20% in 2017, from 4900 to 4000.

In fact, this is the fifth consecutive year that JEANSWEST's total business has been declining.

After sorting out, the total business volume of sunrise enterprises continued to show a downward trend since 2013. The total sales volume of JEANSWEST in the 2013-2017 years decreased by 0.70%, 13.32%, 25.91%, 23.98% and 4.37% respectively.

Fashion

Industry retail experts believe that JEANSWEST's decline in performance for several consecutive years has four reasons: first, the business model of the firm has remained unchanged, and the domestic market has changed a lot in the past ten years, and JEANSWEST has failed to catch up with the needs of consumers. Two, the brand is aging, and the product and brand marketing methods have not changed much. Three, there are some problems in the layout of the channel. With the shopping center becoming the mainstream offline consumer scenario, JEANSWEST still keeps most of its stores on the street. Four, with the fast fashion brands entering the country, the domestic casual wear brands, including JEANSWEST, are facing competition pressure. Because the supply chain and turnover speed can not match fast fashion brands, the domestic casual wear brands are generally declining.

According to public information, JEANSWEST was founded in 1972 in Australia. At that time, the clothing factory of sunrise group, one of Asia's largest garment manufacturers and exporters, was the foundry of the brand.

In 1993, Shanghai opened a store to enter the Chinese market, and there were more than 2000 chain stores and franchises in China.

In 2002, the brand turnover amounted to RMB 1 billion 400 million yuan.

But in the trend of the rise of the e-commerce platform and fast fashion brand, JEANSWEST's performance has gradually declined and stores have been closed down gradually.

JEANSWEST's failure in the country has led to Asahi group's "broken arm to survive".

In 2017, sunrise enterprise sold Jeanswest and International (L) Ltd to Australia and New Zealand to the group of directors and major shareholder Yang Chao and Yang Xun brothers owned Howsea Limited Co., Ltd., the paction was delivered in July 1st of that year.

In addition, JEANSWEST also retreated to the three or four tier city in China.

Analysts who do not want to be identified said the current JEANSWEST did not find the right location, and the development of the online platform was also inadequate.

At the same time, the analysts said that China's domestic brands are rising rapidly, and have a good performance in terms of design and sales performance. JEANSWEST's growth in the future may still be slow.

There is no denying that JEANSWEST is behind Metersbonwe stores, Baleno, Giordano and ESPRIT.

In recent years, these leisure apparel brands in China have encountered the same predicament as JEANSWEST.

Some senior people believe that the whole domestic casual wear category is facing a common problem, that is, the response speed of the supply chain can not keep pace with it, and it is becoming more and more fashionable and gradually marginalized.

In this regard, the industry generally believes that JEANSWEST and other leisure.

The brand can find a way out in the following aspects: first, to improve the reaction speed of the supply chain; two, it is necessary to keep pace with the layout of the channel; the shopping center instead of the traditional commercial street has become a trend; and the three is to improve the interaction with consumers and provide a better shopping experience.