I.T Group Suffered Losses In The First Half Of The Year

In the past five years, the tide brand has moved from the edge to the center, becoming the most profitable business. Once considered to be the biggest beneficiary of the trend cultural dividend, I.T group suffered an unexpected turning point and its performance continued to shake.

Recently, I.T, a multi brand retailer in Hongkong, reported that its net profit for the six months ended August 31st was expected to be net loss in the six months ended August 31st.

I.T group board of directors said that due to sales discounts, reduced inventory and other reasons, some market gross margins and profitability declined. A preliminary assessment based on the consolidated management account and recent performance will show a loss in the first half of August 31st this year, but the group's financial position is still sound.

It is worth mentioning that the I.T group's performance in the first quarter of this fiscal year to a certain degree of decline.

In principle, the I.T group will become a direct beneficiary of market trend changes, and is making money. But from the current situation, the golden age is not yet there. From the perspective of performance, the I.T group began to "expose weaknesses" under the new market environment.

The I.T group entered the mainland market in 2002 and opened the first flagship store in Hongkong, Shanghai. It was regarded as one of the initiator of the mainland consumer trend consciousness. It is understood that I.T group's business is mainly divided into "big I.T" and "small I.T" two lines, "big I.T" mainly sells Alexander, Wang, Paris and other luxury brands and designer brand products, "small I.T" is the main STYLENANDA, izzue and other young people oriented to Japan and South Korea tide card, currently in the country's more than 30 tier cities, there are more than 500 direct retail outlets.

In order to celebrate the 30th anniversary establishment of the brand, I.T Group Co operated with many designers at the end of last year, and launched more than 150 joint series of products, including partners such as Alexander McCune, Alexander Wang, Tom Brown and Acne Studios. The move has aroused great interest among young consumers.

However, as the heat of the "national tide" continues to warm up, the fashion trend is becoming increasingly crowded nowadays. I.T group, despite its early layout and deep accumulation, is still hard to defend its emerging competitors.

In recent years, domestic brands such as Lining and Taiping bird have been transformed into fashion apparel and have entered the international T stage. The younger generation is no longer blindly following the international tide card, and the domestic tide card also satisfies their demand for personalized clothes. It is undeniable that domestic brands have begun to squeeze the I.T group's living space.

At the same time, the challenge of digital transformation is still a thorny problem facing the retail industry. I.T group is also hard to avoid the impact of the times. Over the past few years, I.T has been focusing on the transformation of old businesses when its peers are making efforts in online business. One important step is to readjust the strategy of Hongkong and the mainland market. In the industry view, I.T group in the digital age of the layout of the electricity supplier is obviously a step late.

In view of the highly digitized retail environment in the mainland, I.T group has increased its investment in e-commerce business in recent years, including hiring professional digital talents, expanding online market share and promoting product design and development.

It is worth mentioning that in August 7th of this year, I.T group's "big I.T" officially entered Tmall and opened the flagship store of I.T clothing. Besides that, the group also opened I.T official flagship store. In addition, small programs installed on WeChat platform have been launched.

But as I.T group CEO of China and Chen Huijun, executive director of the old Buddha, said that although the group has been in Tmall for seven years, more energy is still online. Since last year, the group began to seriously operate the "double 11" activities.

The industry generally believes that in the face of such a fierce market competition, I.T group wants to return to its peak, not only to increase investment in digital, but also to create the sense of novelty to regain the right to speak.