In The Past 20 Years, Si Jie World Has Been Performing The "Ten Year Hedong Ten Years Hexi" Change.

Recently, the global fashion trend of fashion king, 00330, released its mid December 31, 2018 results, but the situation is still not optimistic.

It is understood that as of December 31, 2018, 6 months, the global revenue of HK $6 billion 766 million, down 15.84% compared to the same period last year.

Compared with a loss of HK $954 million in the same period last year, the loss of the shareholders of the global group expanded further to HK $1 billion 773 million, an increase of 85.85% over the same period last year.

Compared with the current market value of SG 3 billion 397 million, that is, in the past six months, SiC has already lost over half of its market value, and the situation is very optimistic.

As the saying goes, share prices look at supply and demand in the short run and profit in the long run.

According to sorting out the interim results of Si Jie global calendar year, in 2002-2008 years, the company's performance was on the fast track and reached its heyday in 2007, 2008 and 2009 three years.

However, since the peak of the company's performance in 2008, it began to slide all the way.

Profit is so, stock prices are no exception. In the past 20 years, the Si Jie world has been performing the "ten years of Hedong and ten years Hexi".

We should know that, from a small company to the highest market value, Si Jie global can buy Anta (02020), Lining (02331), XTEP (01368), 31st degree (01361) and China trend (03818) at one go, but now it has been reduced to this stage.

He looks tall.

When it comes to the rise and fall of Si Jie, it is bound to depend on the famous brand ESPRIT.

The brand was founded in 1968 by Douglas Tompkins, founder of North Face, and became popular pop in the United States in 1980s. At the peak, the brand was found in more than 40 countries around the world.

ESPRIT should also be familiar with China's 80s population. The brand entered Hongkong in 1981 and entered the mainland market in 1992 after ten years. It has also become the youth memory of many 80s people.

Si Jie world was the earliest purchasing agent for the brand in China. Later, the company's performance take-off was driven by the opening of ESPRIT in the domestic market.

APP understands that in 1993, Xing Liyuan went to the HKEx with the brand's Asian business and assets and bought ESPRIT's European business in 1997.

Xing Liyuan, the former company boss who led the company's listing, was also known by many as Brigitte Lin's husband.

Over the past decade or so, the global performance of Si Jie has been developing rapidly, reaching its peak in 2008.

In 2008, at the same time, it became the turning point of the fate of Si Jie world. If we trace the history to the present, the trigger point of this turn of achievement is the outbreak of the financial crisis in 2008.

Since the outbreak of the financial crisis in 08, the operation of sac global has been hit. According to the company, many customers are strained in the crisis, unable to place orders, and some customers even go bankrupt.

The subsequent reaction is the wholesale channel blocked, resulting in a large number of inventory backlog, the company had to start low-priced goods.

However, what the whole world could not think of was that after the decision, the company began to go down the road of decline.

The building collapsed.

Under the downward trend of performance, management began to "throw stones".

In September 2012, Si Jie world invited Zara coach Ma Hao Si to CEO as a price tag of HK $40 million 350 thousand.

After that, there were three other executives of Indo textile, the Zara parent company. In the following years, the company gradually formed the "Zara Gang", and the four year pformation plan was officially opened.

However, Ma Hao Si's appointment seems to be unable to turn the tide.

Because the "Zara" model that had worked miracles also seemed somewhat unnatural to ESPRIT.

In the next few years, the global economy continued to fall, and it also ushered in a wave of management withdrawal.

The first to quit the company was Xing Liyuan, who led the company on the market. He resigned as chairman in 2006 and became a non-executive director. At that time, the company was still on the rise.

Then, when the company was at its peak in January 2008, it resigned as a non-executive director and withdrew from management.

In 2009, Esprit brand President Thomas Johannes Grote and North American president Griffith also submitted applications for resignation, since then all three founders have withdrawn.

In 2018, Esprit officially announced that CEO Ma Hao Si left the company and was appointed by Anders Christian Kristiansen, a former New Look CEO.

Along with the departure, there are former product President Rafael Pastor Espuch, as well as the audit committee and risk management committee member Jos e Mar a Castellano Rios.

Accordingly, the "Zara Gang" has collapsed and there are only 2 left.

At the same time, after Anders Kristiansen took the baton, another wave of layoffs was carried out again.

According to Anders's previous open letter to employees, the global strategy will lead to the adjustment of strategic direction and large-scale layoffs.

Among them, ESPRIT German executives laid off nearly half of them.

In addition to reducing the number of employees, Esprit will also suspend shop plans in Europe and Hongkong.

According to Zhitong finance and economics APP, the latest data show that Si Jie global has been pferred out of Hong Kong stock in September 10th last year.

As investors can not buy shares through the Hong Kong stock through the Hong Kong stock exchange, they can only sell the operation, which is undoubtedly another blow to the market value of the global market.

From this point of view, the 2018 from the peak of 2008 was a landmark year for the star crash.

Failed reforms

During the 10 years, Si Jie tried various changes, and the most prominent one was the strategy of "Zara mode".

However, with the collapse of Zara, the Zara strategy of Si Jie also failed. From the perspective of her strategy for the next five years, Si Jie also wanted to draw a line with Zara.

In fact, since the beginning of this plan, the difference between Esprit and Zara's operation mode has decided the result of failure.

The "Zara mode" that can be praised can only be designed for 7 days in the shortest time for garments, and 12 days in general. This is unbelievable for the clothing industry.

Since the Zara coach's team entered the Esprit, the company has been carrying out the vertical reform. It can only achieve 2-3 months from design to ready-made clothes, which is still far from Zara.

The main difference is that Zara 50%'s products come from their own factories and belong to heavy asset companies, so they have absolute initiative in product source control.

However, as a light asset company, Esprit can not really achieve "Zara speed" at all events.

Though failed in the strategy of keeping up with Zara, Esprit has made substantial progress in inventory and supply chain optimization, and can not be the reason for Esprit's downlink.

What really results in the downward performance of Esprit is the loss of customers under the brand, and the essence of this result will inevitably result in the management of Esprit itself.

When new CEO Anders Kristiansen reviewed the company's operating conditions, most employees did not understand the status quo of the brand.

Ke Qinghui, chairman of Esprit, also pointed out that a major reason for the sluggish sales of Chinese products in the Chinese market is that the existing product designs and sizes fail to meet the needs of Chinese consumers.

This is fatal to a clothing brand. If the product is not ready at all, then the customer's departure is the inevitable result.

In the 10 years of downlink, Esprit constantly reflected and tried to change, but in fact, it paid attention to the scale and form, but ignored the product itself.

At present, the number of fans of Esprit in Instagram is only about 360 thousand, far below the magnitude of the scale it should cope with.

How can fashion brands have tomorrow if they lose young consumers?

There is still a chance to cash in hand with 3 billion 600 million cash.

After the loss of fans, the regional distribution of Si Jie's global income also varies.

Taking the latest performance as an example, APP, a leading financial group, has seen a year-on-year decline in customer revenue in Germany, which has been the main sales area for 17.36% years.

The proportion of income in the Asia Pacific region has also declined.

In the first half of fiscal year 2018-2019, the group closed 91 shops, plus 50 shops closed for six months. The net retail sales area decreased by 12.2% compared to the same period last year.

In the future, the company will continue to eliminate loss shops to increase sales revenue.

In addition, the asset turnover rate of the company has remained at a relatively stable level in the past five years.

During the latest performance period, the stock balance decreased by 12.7% to HK $2 billion 440 million.

But the turnover period increased to 132 days, an increase of 7 days over the same period last year.

Profitability is also deteriorating, with gross profit decreasing by -16.9% to HK $3 billion 471 million.

In terms of gross margin, the discount level is higher, which is 1.6% to 51.3% lower than the same period last year.

However, compared with the degradation of the above data, the biggest bright spot for Si Jie world is "no debt" and cash is still abundant.

According to the latest data released, the company currently holds cash of HK $3 billion 636 million, its biggest margin of safety, and this money may provide the basic soil for the company to turn over the market.

At the same time, the new CEO has begun to work hard to increase revenue and reduce expenditure, such as further streamlining manpower, and non store staff to reduce 35% to 40%.

Among them, the five offices of Ratingen will be integrated into one, and the size of the Hongkong office will be further reduced.

Even with the brand "Zara", "cut the boundaries" to reduce the proportion of high-end fashion, and enhance the basic style.

Moreover, Si Jie called "achieving balance of payments in 2 or 3 years, and achieved a high percentage of unit business in the 2022-2023 fiscal year."

Slogan.

Of course, the slogan is the slogan. As for the effect of the new CEO's strategy, data and time need to be proved.