Australia Has Gone Bankrupt And Cleared. There Are 1300 Stores In The Country. What Happened To JEANSWEST?

In the memory of many post-90's, when the clothing brand is not personalized enough, when it comes to jeans, you will often blurt out: JEANSWEST, the once king of jeans, seems to have "JEANSWEST building" events in the memory of many years ago. I do not know if the big family has noticed the once popular JEANSWEST. It seems that they have not seen it yet, but recently, JEANSWEST, which is hard to get news, is a batch of bad news.

One, the JEANSWEST is constantly in trouble.

In mid January, according to the daily mail, JEANSWEST Australia entered voluntary trusteeship and entered bankruptcy and liquidation phase. Australia is the birthplace of JEANSWEST. In 1972, JEANSWEST was founded in Perth, Perth, the fourth largest city in Australia. In 1990, it was bought back by its upstream suppliers, Yang Zhao and Yang Xun two, and it soon won second in the Australian market.

In 2015, JEANSWEST received a pre tax profit of HK $7 million 550 thousand in the Australian and New Zealand markets. In 2016, pre tax losses exceeded HK $80 million. At present, JEANSWEST has 146 stores and 1000 employees in Australia, and the official website of JEANSWEST Australia can still be accessed normally. Next, they will accept the audit of KPMG accounting firm and face the fate of reorganization or sale. It is reported that managers will study and restructure or sell all options of JEANSWEST, which will also seek strong buyers or investors at the same time. During the bankruptcy management process, JEANSWEST will continue to operate.

However, the fate of JEANSWEST in China seems to be no better. In 1974, Yang Zhao and Yang Xun used the money saved by workers to set up the sun clothing factory in Hongkong, and earned the first barrel of gold through their jeans. Both JEANSWEST and GAP are their OEM customers. They studied GAP carefully and made their own goal after acquiring JEANSWEST: "make JEANSWEST into China's GAP and do Chinese brand in the casual wear market."

In view of the bullish mainland market, Yang Zhao and Yang Xun brothers' sunrise group bought JEANSWEST in 1990 and opened the first mainland store in Shanghai in 1993. Backed by foreign brand genes and Hongkong company's holdings, JEANSWEST and Baleno, Giordano and many other international brands have enjoyed the first wave of welfare in China's apparel market after the reform and opening up, thus becoming the most popular clothing brand in China. Because of its low price positioning and sales strategy, JEANSWEST has been popular in the vast number of two or three line cities, and has become the youth memory of many "town youth". In 2012, the number of stores in mainland China reached 2500, and sales in 2013 reached nearly HK $5 billion in 2012.

However, the time of high light is also up to 2012, and since 2013, JEANSWEST has closed more than 1300 stores. The parent company's sunrise group announced in August 27, 2018 that the mainland Garment Retailing Business, which sold for 800 million consecutive years, was sold to the founder and major shareholder Yang Zhao and Yang Xun brothers of the group, and JEANSWEST's garment business in the mainland of China has been stripped in August 27, 2018. In 2019, sunrise group divested JEANSWEST of its business in Australia and New Zealand.

Many people are asking how did the jeans King come to a closed shop or even bankrupt overseas assets?

Two, what did the king of jeans do wrong?

I believe that most of the people in the memory of JEANSWEST should stay in the "JEANSWEST building" incident happened in Tsinghua University, the highest institution in China in 2011. JEANSWEST could be regarded as the highlight of the year, and its annual revenue is nearly 5 billion. It can be seen as the leader of the Chinese clothing brand. Why, however, JEANSWEST has been on the downhill since 2013. What is the reason for JEANSWEST falling into the altar?

Remember, we once analyzed Metersbonwe that did not take the unusual road, and now it was once a giant fell. So we might as well use the same logic to see what JEANSWEST did wrong.

First of all, JEANSWEST's success is a hero of the times. In fact, the biggest reason for the rapid success of a group of Hong Kong clothing brands represented by JEANSWEST, Giordano and Baleno was the rapid upgrading of the Chinese consumption level after the reform and opening up. However, the mainland market in China at that time was a blank, and there was no clothing brand that had enough market influence in China. The clothing enterprises in Hongkong successfully carried out the fashion trend of the US and Europe through the window of Hongkong, and used these tidal current factors on their clothing, extending the market to the mainland continuously through their own tentacles, and constantly expanding their own clothing Empire territory through different lines of cities, so in a short time, these enterprises rose vigorously and occupied the overwhelming majority of the clothing market. On the one hand, these clothes themselves are very rich in fashion trends in Europe and the United States. These are undoubtedly attractive to mainland Chinese consumers whose fashion has just started. On the other hand, their prices are enough to be close to the people, far lower than those of the famous brands in Europe and America. This makes Chinese consumers suddenly become their fans. Under the influence of the reform dividend, with the spring breeze of reform and opening up, it has become the most successful enterprise in the era. However, it is because they are above the draught, in accordance with the common theories of the Internet, that we can fly as soon as we choose the right draught pigs.

Second, from the blue sea to the Red Sea. The JEANSWEST successfully entered the market and then occupied the two or three line market with its own market potential. After that, the four or five line market became the favorite of the town youth. However, the times were changing. The blue ocean market in that time was due to the high profits. So after JEANSWEST, a large number of latecomers came to flock. These newcomers had their own brands of Metersbonwe, more famous international brands such as H&M, ZARA, UNIQLO and so on. These market competitors turned the market into a red sea, but the first JEANSWEST was obviously not the opponent of these latecomers, not only the style was backward, but also the marketing way was not enough to compete with the competitors, and finally it was gradually eliminated by the market. For JEANSWEST, its high light from 90s to 2013s is exactly the way to break through the blue ocean market of China. In the 90s of last century, the first tier cities such as North Shanghai and Guangzhou had just risen.

Third, the rise of the electricity supplier gave JEANSWEST the final blow. 如果說市場從藍海變成紅海，其實這還是個過程，畢竟對于中國廣大的三四線甚至小鎮青年們來說，那些國際知名品牌還離他們太遙遠，所以在相當長的一段時間內做五環外的生意是真維斯重要戰略觸點，然而電商的出現卻徹底改寫了這個邏輯，雖然2009年真維斯就開始做自己的電商，但是真維斯一上來就走歪了，它沒有真正花心思去做真維斯的電商板塊，而是把電商變成了自己處理尾貨的“奧特萊斯”，這就導致真維斯的電商長期得不到有效發展，而另外一邊，阿里、京東卻已經強勢崛起，他們對真維斯的圍剿卻是降維打擊，讓大量的國際時尚潮流服裝開始通過互聯網直接空降下沉市場，與此同時，真維斯發現自己面對著一個尷尬的境地，要比便宜，互聯網上的那些拼購代工廠都比自己便宜，要比時尚國際知名巨頭也都能買到，而真維斯呢？ This is JEANSWEST's biggest problem.

In this age of Internet, it is not enough to say that you are good at your traditional market advantage, because your enemy will often take direct air attack on a descending dimensional aircraft, and if you don't even have an air defense missile, you will only be beaten behind.