La La Summer Bell Closes 13 Stores Every Day, Can He Search For Nirvana?

Some time ago, he went to shop 13 shops every day.
What happened to La Natsu Bell, who was once listed in Hongkong and Shanghai, who was known as the king of women's clothing and the Chinese version of ZARA by the market?
According to the financial network, as of June 30th, the number of retail outlets in La Natsu Bell was 6799, 2470 in half a year, and 27% in shrinkage, with 13 shops closed on average every day.
There are many shops that are not selling off the store. The clothes with a price of 1099 yuan are discounted for more than 400 yuan, three pieces can be spelt, and ten percent off can be saved by 100 yuan. The new listing is far from being expected.
In addition, inventory is the most difficult pressure for La Natsu Bell to bear.
The interim results also show that the book value of La Natsu Bell's inventory is as high as 2 billion 160 million yuan. The expansion of the inventory means increasing the pressure of cash flow. This year, La Natsu Bell's net profit has shown a loss of 565 million yuan for half a year.
In the face of performance losses and debt crisis, La Natsu Bell can only choose to sell real estate to tide over the difficulties. Now, under the office building, we can see posters that have been posted outside.
01
Inventory backlog under blind expansion
Why is La Natsu Bell facing losses?
In October 17th, La Natsu Bell announced that the controlling shareholder Jack Walker (Shanghai) Garments Co., Ltd. (hereinafter referred to as Jack Walker) could not continue to operate because of a continuous loss, and intends to apply for bankruptcy and liquidation to the people's court. In view of the fact that the bankruptcy liquidation is yet to be accepted and ruled by the court, there is still uncertainty in the matter.
As La Natsu Bell's sub brand, Jack Walker was founded in 2009 and is located in the international leisure men's wear. The product line includes leisure, sports, cowboys, business and other series, the main menswear brand O.T.R.
But since its inception, it has been in a state of loss, not only did it not bring La Natsu Bell revenue growth, but rather dragged its back.
As can be seen from the announcement, in 2018, Jack Walker's total assets amounted to about 174 million yuan, with net assets of -1.67 billion, operating income of about 171 million yuan, and net profit of 162 million yuan. Moreover, the announcement also shows that as of September 2019, La Natsu Bell's balance of operating loans to Jack Walker was as high as 247 million yuan.
"Survival" under the huge loss.
The bankruptcy liquidation of Jack and Walker is due to Jack Walker's continuing loss and insolvency. On the other hand, La Natsu Bell is gradually losing weight, cutting edge business and focusing on the main business.
La Natsu Bell's advantage lies in women's clothing, which is why they shrink other businesses.
Once, La Natsu Bell's brand was only LaChapelle, Puella, Candie 's three. Since 2011, La Natsu Bell has adopted a multi brand strategy.
The number of sub brands is as high as nearly 20, covering women's wear, men's wear, children's wear and so on. Such as La Chapelle, Puella, UlifeStyle, Candie 's, La Babit e, Siastella, INMIX, Segafredo, chateau, and so on.
When the main brand is not strong enough, it can not diversify, and it will give consumers little experience in differentiation. It will easily bring confusion to the brand and reduce the feeling of the main brand.
If we can not achieve differentiated positioning, we will not be able to focus on target consumers. Blind expansion will lead to accumulation of large stocks in multi brand stores.
But is La Natsu Bell's loss only a sub brand?
Of course not. Let's think about it. If La Natsu Bell's main business is developing well, it will not be dragged down by the brand. On the contrary, it can promote the development of other sub brands.
Then, where is the problem of La Natsu Bell's dress?
　　 02
Design and quality are the biggest problems.
From the feedback of netizens, the main reason lies in "old design", "poor quality" and "high price".
At the beginning of La Natsu Bell's founding, Xing Jiaxing, his founder, met the rise of China's clothing industry. However, because he didn't have much capital, he started from the clothing training class and worked as a garment factory worker and a clothing distributor.
Until the 1998, reform and opening up brought about rapid economic development. Xingjiaxing was influenced by Zara and other fast fashion models, so the clothing brand "La Natsu Bell" was founded.
La Natsu Bell's French name is "La Chapelle", the residence of Xing Jiaxing when he conceived the brand, the name of a french street.
Xing Jiaxing hopes to integrate French fashion culture into costume design, bringing romantic French design to Chinese consumers.
At that time, La Natsu Bell was at the forefront of fashion in style and design. With the help of ZARA mode, the dress industry soon improved.
At that time, La Natsu Bell's stores spread all over the cities. Because of the rapid development trend, it was once regarded as the "Chinese version of Zara", which is the real national dress.
For many Post-80's and 90's, La Natsu Bell is a brand that carries countless childhood memories.
But today's La Natsu Bell is old fashioned and full of Taobao. It's hard to get on with fashion.
A loyal consumer who used to be La Natsu Bell said that it used to be all in the closet, but now there is nothing, no desire to buy. "Clothes are too ugly and too popular. They are all goods in stock."
There are still a lot of Tucao about quality, for example, "once you wear it once, you hit it."
When a high-end women's clothing is not only designed and quality is not good, the price is still expensive, then it is inevitable to lose customers step by step.
　　 03
Past glory no longer
"Broken arm" is a wise move to survive.
At the beginning of the return of A shares in 2017, La Natsu Bell was also highly sought after by the capital, with a market value of about 12 billion yuan. Today, La Natsu Bell's market capitalization is less than 3 billion yuan, less than 1/4 of A shares listed.
Under such circumstances, it is a wise move for La Natsu Bell to reduce the business line, which will help to concentrate the superior resources to develop the core women's clothing brand, clarify the brand positioning and build the differentiated brand matrix.
Only when the main business is done and done, can diversification be possible.
With the upgrading of consumption, people's aesthetic standards are also improving. If clothing brands do not keep pace with the times, they can not meet the needs of consumers in pursuit of novelty and fashion, so they will easily be abandoned by the public.
In the future, La Natsu Bell can speed up the transformation of enterprises, improve the design and quality, and optimize the industrial layout, in order to reverse profits and losses and bring new vitality to enterprises.