The Impact Of Fast Fashion On Hong Kong Brand Esprit And Burshlung Is Expanding.

With the opening of the 2018 earnings report, the results of the Hong Kong listed clothing brands were also clear: the Esprit parent company's global medium-term loss expanded to HK $1 billion 700 million, and burshlung lost 25 million 748 thousand Hong Kong dollars.

Baleno and JEANSWEST have been traded before.

In the fierce market competition, some of the Hong Kong leisure apparel brands that were once in the limitless trend declined.

Why does Hong Kong's brand "high gloss no longer"?

Garment industry analyst Ma Gang believes that the main reason for the decline of Hongkong's clothing brand is the lack of effective response to the changes in the consumption environment, and the changing market environment and the new channels represented by the electricity supplier are constantly rising.

Electricity providers, fast fashion around attack, making Hong Kong brand "hard to survive".

The market value of Hong Kong clothing brands has shrunk collectively.

Aunt Yu, who lives in Chaoyang District, will be used to stroll around Esprit after shopping in Chaoyang Joy City every time.

Auntie believes that Esprit's clothing is basic, good quality and cheap, many times to fight seventy percent off, but even so, aunt has not bought Esprit products for many years.

Speaking of Esprit, the most obvious impression of aunt is that she spent more than 300 yuan years ago to buy a cotton jacket for her lover.

"The price is less than 400 yuan, it is also a famous brand, which is much cheaper than other brands on the market.

My wife is still wearing this year. "

Auntie told the Beijing News reporter.

However, in recent years, Auntie obviously felt that Esprit was a little "too angry".

"Before the brand is located in the best location of the shopping malls, how can it not be found now?

Moreover, in recent two years, some brands are not keeping up with the times, and there are more and more other brands on the market.

Just like the feeling of auntie, Esprit's development in recent years is not satisfactory.

In the evening of February 26th, 00330.HK, the parent company of Esprit, handed over the pcripts in the six months ended December 31, 2018.

During the reporting period, the company realized HK $6 billion 766 million, a year-on-year decrease of 15.84%, a gross profit of HK $3 billion 471 million, a decrease of 18.37% compared to the same period last year, and a loss of HK $1 billion 773 million for the shareholders of the company, an increase of 85.85% over the same period last year.

As of press release, the latest total market value of Si Jie is HK $3 billion 416 million.

Before 2007, it was regarded as the gold ten years of Si Jie world, with a maximum market value of more than HK $100 billion.

At that time, the Chinese market was not eaten up by fast fashion, and the competitiveness of similar clothing brands was relatively weak, and the electricity supplier was also in its infancy.

In 2003, Xing Liyuan, the founder of the company, ranked first in the $1 billion fortune list of Forbes, ranking the 310th place in the world for $1 billion 800 million.

The market value of the company has shrunk by over 90% compared with the market value of high light.

By the end of December 31, 2018, there were 495 retail outlets in the globe, and 141 stores were closed, of which 136 stores were closed in the Asia Pacific region, and 5 new ones.

It is difficult to extend the past scenery, not just Esprit.

Domestic consumers once familiar with brands such as bursworth, Baleno, Giordano and other brands have been gradually forgotten by domestic consumers. Many of them even told the Beijing News reporters "never heard of it".

In February 20th, 00592.HK released the interim report for the 6 months ended December 31, 2018.

During the reporting period, the company realized an income of HK $875 million, a year-on-year decrease of 10.13%, a gross margin of HK $457 million, a decrease of 10.71% over the same period last year, and a loss of HK $25 million 748 thousand for the company's owners, an increase of 117.80% over the same period last year.

In this regard, the group attributed to weather and consumption.

The group said that the core markets in which they operate are exceptionally warm in winter and low in local consumption.

Reporters noted that the annual profits of burshlung group have been declining for five consecutive years.

From 2014 to 2017, HK $127 million, HK $115 million, HK $292 million 100 thousand (HK $267 million were derived from the sale of properties), HK $4 million 886 thousand, and a direct loss of HK $20 million in 2018.

In addition, the group's overall revenue fell 10%, while same store sales fell 5%.

Gross margin fell 1 percentage points to 52%.

From the regional perspective, the same store sales in Hongkong, China, Macao and Singapore fell by 5% and 6% respectively, while the same store sales in mainland China and Taiwan in China decreased by 3% and 7% respectively.

According to public information, burshalon was founded in Hongkong in 1987 by the "knitting king" in Hongkong, China. It was officially listed on the stock exchange of Hongkong in 1993.

In 2005, the market value of burshlung reached 2 billion 500 million yuan, which was nearly 10 times higher than the issue price.

However, since 2015, the performance of burlung has gone down.

As of press release, the market value of burlung was HK $459 million 600 thousand, shrunk by over 80%.

Giordano and Baleno used to be called the three giants of the Hong Kong clothing brand.

However, since 2011, sales of Giordano in the Chinese mainland market have begun to decline.

In 2015, Giordano sharply reduced 81 stores, and its sub brand EULA also announced that it had stopped operating.

Giordano International (00709.HK) announced earlier that in the 3 months ended September 30th, group sales fell 5.2% to HK $1 billion 176 million, and fell by 6.9% at fixed exchange rates, which was 2.8% lower than that of sales.

The group said the decline in performance was mainly affected by the setback of consumer confidence in the Asia Pacific region since June.

E-commerce and fast fashion besieged Hong Kong clothing brand: where to go?

The environment of Hongkong's retail industry has affected Hong Kong's clothing brands.

Taking burshlung as an example, the real "golden age" of burlung was ushered in the opening and free movement of Hongkong to the mainland.

In 2003, since the opening of mainland tourists to Hong Kong, the number of tourists to Hong Kong has risen sharply, and the retail industry in Hongkong has ushered in the golden period of over 10 years.

During the same period, the development of burshlung was fast.

However, like many other brands in Hong Kong, Hongkong's performance has gradually declined along with the decline of the number of mainland to the mainland and the increasingly fierce competition in clothing.

According to the latest official figures, retail sales in Hongkong recorded the slowest growth in 17 months last November, mainly due to the constant fluctuations in the geo economy, which has made consumers more cautious.

In the clothing industry veteran observers, Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., it seems that the performance of the above Hong Kong clothing brands is indeed affected by the consumption environment in Hongkong, but the company's own product system is also lack of innovation.

"Despite the constant adjustment of the company, the core problem is that most of these changes are just some redemption to meet the interests of investors, and there are no more long-term plans.

In the final analysis, the decline of Hong Kong's clothing brand is still lacking in the innovative ability of the products, so we can not really understand the consumption demand of the front-line market and the strategies of our competitors.

For the decline of the brand, Yang Dayun, President of UTA Fashion Management Group, believes that the most important reason is that there is no innovation and lack of training: "Hongkong as a trading port, Hongkong businessmen's business ideas are barter trade, and lack of brand promotion and industry promotion."

The clothing brand of Hong Kong entered China in the early 90s of last century, and its management and promotion methods were advanced.

Since 2000, with the rise of China's local brands and the flat information, Hong Kong brand has gradually lost its leading position.

"Chinese enterprises know more about the mainland market and surpass the brands in Hong Kong."

Ma Gang, an apparel industry analyst, also said that the internal reason for the decline of Hongkong's clothing brand is that Hong Kong brand has slowed down in the past decade and is out of touch with consumers.

For example, Baleno's "classic" Flannel Plaid and so on, and UNIQLO almost nothing special.

In the early days of brand building, Baleno quickly opened the market in mainland China with its design and parity. At that time, the relative scarcity of clothing resources made clothing design easy to sell.

In this round of cruel reshuffle in the fashion industry, one side is that the old fashions are facing the trend of closing stores, while the other is fast fashion to seize half of the fashion industry.

Yang said that with the rise of the Internet, such clothing brands are gradually lagging behind domestic enterprises in information and Internet technology, and are also being suppressed by international fast fashion brands.

Ma Gang said that with the rise of new channels represented by electricity suppliers, some of the more affordable clothing had a greater impact on Hong Kong's clothing brands, and Hong Kong's cards had not been fully utilized in this wave of opportunities.

"Leisure fashion brands demand high tide flu, which will have a great impact on product development and marketing."

A staff member who once worked in a sales office in Giordano told reporters that many brands such as Giordano and Baleno have not known Giordano and Baleno after 90 years. This kind of casual wear brand, which is the main product quality in the past, can not get the favor of the young people because of their lack of individuality and publicity.

"Buying clothes is actually perceptual consumption.

The fast fashion brands abroad are strong, and the products are updated very fast. The fast fashion oriented consumer group is 18-25 years old. The consumption demand of these people is very high, but the economic strength may not be very strong. The affordable prices and the fashionable styles are more attractive to them.

In addition to the style and price, the reporter visited that the younger people prefer the "self-help" clothing shopping, that is, they pick clothes they like in the store, then go to the fitting room to try.

ZARA, H&M and other fast fashion are adopting this business mode.

Part of the Hong Kong funded clothing brand is the traditional shopping guide follower service.

Many young people will feel that this model is "some people are uncomfortable" and "try clothes not to buy very embarrassed" and other concerns.

Can fast fashion mode become a life-saving antidote for Hong Kong's clothing brand?

Hong Kong clothing brand is also looking for a way to save themselves, one of which is to follow the fast fashion brand represented by Esprit.

Xiao Wu, 27, has 5 years of experience in costume shopping.

"I have been in Esprit for 4 years, and I know all of their early clothes.

Last year, I left my home because the passenger flow declined and the Commission was not much.

And the company is also following the fast fashion brand, reducing labor costs. "

Esprit has been ambitious in emulating fast fashion brands.

In 2012, the brand picked up a large sum of money to excavate Ma Hao Si, director of distribution and operation of the Inditex branch of Spain, an experienced Zara parent company. He was appointed chief executive of Sijie global, while Gisele Bundchen, a Brazil female model, was invited to endorse the brand.

According to media reports, Zara will launch about 12000 styles in one year, and every limited supply will be sold out and not replenished. The team of nearly 400 designers will launch the latest fashion design similar to the popular brand at the end of the major brand fashion show.

This brand marketing mode is called the "Zara" mode by the industry.

In contrast, Esprit's traditional business model has become a drag.

Esprit products, from the beginning of design to the sale of shelves, often take more than 9 months.

After joining the company, Ma began to carry out vertical reform, including reducing 1/3 suppliers, reducing style and optimizing inventory, but it still can not be compared with Zara.

For Esprit's "Zara" pformation strategy, Ma Gang believes that although Zara and Esprit are both clothing brands, there are essential differences.

Each enterprise's own resources are different, so it is difficult to imitate.

How to turn the clothing brand in Hong Kong?

Ma Gang believes that the development of Hong Kong's clothing brands needs to be familiar with the talents and management methods of the mainland. Zhu Qinghua, a light industry researcher at CIC, points out that under the trend of the mobile Internet, opening up online stores, flagship stores, micro stores, or the pformation direction of traditional leisure brands, they also need to pay attention to the excavation and analysis of market potential demand, closely related to market demand, and the business chain is running more quickly, so as to enhance brand effect through multiple channels.