Another Look At Clothes: How Does I.T, The Trend Leader, Survive?

Although under the cloud of epidemic situation, many enterprises have gone upstream, while fighting against the new coronavirus infection pneumonia, luminous assistance, while preparing for the resumption plan one after another, this is undoubtedly a big test for businessmen. Life is always going to continue. For the clothing industry, it is still in the recovery stage. What are the high-profile events in the global industry last week? Let me see the report of Zhongfu net.

　　 Domestic events: February 17th -2 21

Sports brands live online and dig deep into the "home style" sports economy. To avoid the impact of the epidemic on customers and employees, many sports brands also choose to close shop. Unlike the consumption craze in previous years, this year's Spring Festival is particularly cool in the physical stores. This is not a good phenomenon for brands. This situation is not what we are accustomed to, but it also brings more challenges and opportunities to the brand. Anta joined keep to launch the online star sports course. Olympic champion Liu Lingling and Zhang Jike appeared in the sports course. Nike has created a WeChat live fitness live broadcast program based on small programs - "exercise home." Adidas official micro-blog announced that it would jointly broadcast live live with Taobao live, and invited star tide leader Li Chen NIC to explain the story of "shell head". Zhongbao said: the loss of large quantities of shops to the brand is huge, but there is no business. With the advent of the 5G era, consumers who are at home can also feel the love and care of brands. Today, brands are discovering new economic models through live broadcast. Since February, more than 100 kinds of offline occupations have found new possibilities in Taobao live broadcast, and the "cloud work" mode is becoming the norm. Through this kind of live broadcast, the brand can create a social and ecological circle through the platform while selling goods, and lay a more solid foundation for the future development of the brand.

　　 Hongkong trend leader I.T will be handed over to the two generation to take charge of the big layoffs.

According to Hongkong media quoted insider sources, as of the end of last year, I.T, a multi brand fashion retailer in Hongkong, had laid off over 300 employees and reduced the welfare policy for the remaining employees. Affected by the outbreak of the new crown pneumonia, more internal staff revealed that the company would give unpaid leave to all employees in 2 and March. According to the internal letter, all C level administrative staff will be given 12 days unpaid leave, vice president level and director level are 10 days, other employees earn 20 thousand or more for 7 days, and 20 thousand days less than 4 days. Up to now, I.T has not responded to relevant news.

China service network: as for the brand itself, it is positioned in the fashion culture to keep it high in the young consumer groups. However, according to the data, I.T profit margins have been hovering in the low single digit, plus the great impact of the epidemic, the brand has to adopt self rescue mode. It includes coping with changes in management structure, layoffs and salary cuts. But what can not be overlooked is that the change of new and old players in the trend business has made the traditional business model vulnerable to changes in the new technology driven fashion industry. It is reported that in order to maintain the brand's younger age, Shen Jiawei intends to let her 18 year old daughter Shen Yue take over from the perspective of young people to inject new vitality into the company.

　　 Five years four degrees easy to master ST Busen's shell battle

The development of *ST Busen (002569.SZ) is undergoing multiple tests. In February 18th, the Shenzhen stock exchange sent a letter of concern to the company to inquire about its failure to complete the engagement of audit institutions. In addition, the Commission also made a case investigation in January 14th on suspicion of illegal disclosure of information. Moreover, *ST Busen, which has been implementing the delisting risk warning for two consecutive years, is the key year for its preservation in 2019. The company is troubled by problems, shareholder disputes and changes in actual controllers, all of which have a haze on its shell battle cage. "If we can guarantee the success of the shell, we will eventually accept the audit results and delay the issuance of financial reports."

Zhongfu said: Busen can be said to be twists and turns. In fact, as early as last May, Dongheng was awarded the 16% stake in *ST Busen through judicial auction, and became the largest shareholder of the latter. Subsequently, the other small and medium-sized shareholders continued to "cut the door". After several rounds of real control, they were badly hurt. In fact, the original brand has a good momentum in the clothing sector. Later, the real estate industry led to financial pressure, and the real control people who went through the Lantern Festival struggled to build up the foundation of the main business. This is a great pity. At present, the companies that enter the market are using Busen as a shell resource. New capital will be injected into the new business, but even if there is entity business, it will not be able to get rid of the fact that it has become "shell" in the short term.

　　 Monthly cost of 100 million yuan, red dragonfly how to survive the crisis?

Red dragonflies earn billions of dollars a month. When the epidemic hits, the retail sales stop at the bottom of the revenue, while the cost of the store rent and the staff salaries are calculated, and the monthly fixed expenditure is 100 million yuan. Where is the way out? The Red Dragonfly decided to move the offline store to the Internet. Within 1 days, the online shopping mall was completed; in two days, more than 400 super 200 people were established, and more than 5000 offline shopping guides were on duty. On February 7th -17, the daily sales of Red Dragonfly started from 150 thousand, rising continuously, and has exceeded 100 million yuan so far. Because this is a new ability to forge in a very short time. Not to mention, as long as goods and capital flow, the company will run.

Zhonghua net: "move the store to the Internet and move to the community." Even if the offline stores are closed, there will be cash flow as long as they can sell the goods. With cash flow, you can save lives. A small program is launched in one day to move people, goods and fields to the online market. It shows that the efficiency of the brand and the composition of hundreds of national communities means strong social networking ability. If you want to accumulate member data in such a short period of time, under pressure, some enterprises usually do well in basic skills, and the risk will be reduced accordingly. For the red dragonfly, the main task now is to sell goods and revitalize the funds. The sale of the stores is equivalent to putting the wings into the stores. After the epidemic, the retaliatory consumption of the stores will make the fighting power of the enterprises stronger.

　　 International events: February 17th -2 21

Is it possible to continue the myth after being acquired?

For a long time, "Wei Mei" has been chased by consumers all over the United States and even the whole world. It is the "sexy myth" in the hearts of millions of people. Now, the "dream" is broken, and "myth" is no longer. The buyer was Sycamore, a private equity giant who bought Staples, the world's largest office supplies retailer, and Sycamore bought the "sexy myth" that was once pursued by consumers all over the world and even the world. In fact, if you look closely at the assets of Sycamore, known as the "vulture" of the private sector, you will find that this kind of business is very handy. How can it have such a great capacity and grasp buying secrets? Can it continue to write the "myth" for global female consumers?

China service network: Staples has always been good at adopting low price strategy. In the past history of acquisition, its acquired brands often survive in cracks, poor performance, unprofitable development and coercion in the market competition environment. For the acquisition of Wei, after entering the twenty-first Century, because the product design is aging, the brand image has not been able to keep up with the consumer mentality and aesthetic upgrading in a timely manner. The influence of the show has also been on the decline. The industry has criticized the "sexy" marketing strategy for a long time, and consumers no longer worship the myth of sex. The biggest worry for the apparel industry is that they do not understand young people's preferences. The decline in attractiveness is directly related to income and profits. So, after Sycamore takes over, can Wei continue "sexy myth", or go out of a new way to become the lingerie queen in the eyes of thousands of young women?

　　 Forever 21 was officially bought for $81 million 100 thousand.

Forever 21 has made new progress in bankruptcy acquisition. According to Reuters, the Delaware court of bankruptcy has agreed to a consortium of Simon real estate group, brand management company Authentic Brands Group and Brookfield Real Estate Company to acquire fast fashion Forever 21 for $81 million 100 thousand. It is reported that this is the only price quoted by the court, and the brand announced the cancellation of its bid on Monday because it failed to receive any qualified offer. Forever 21 now accumulates a total of $120 million in debt, which needs to be repaid after bankruptcy. Last year, Forever 21 filed for bankruptcy because of the high rent, the drag on its international sector and the change in consumer tastes. The new owner has agreed to pay $81 million in cash and certain debts, including $53 million that has not yet been paid.

China service network: the fast fashion giant Forever 21 of the United States has found a buyer after experiencing a wave of poor performance and withdrawing from the Chinese market, and has reached a sale agreement with a consortium of American commercial real estate giants, commercial real estate companies and American brand management companies. And brand stores are unavoidable, especially through the application, closing up to 178 stores in the US market. In addition to changes in stores, Forever 21 will continue to operate in the US and international markets in the future, and will transform its own store business in Central America, South America, Mexico, Philippines and the Caribbean into an authorized mode of operation. All along, the brand is in downtown area, the stores have high rent, but the profit level of the stores is not high, and the publicity value of its brand is also gradually disappearing.

　　 Tommy Hilfiger: how do we get to the classic American route?

On the evening of February 16th, designer Tommy Hilfiger staged a brilliant red, white and blue show in London, inspired by the iconic style of the brand, displaying classic Street clothing and American style college wind products. At the same time, people can buy all the new T products online and around the world. As early as 2016, Tommy Hilfiger began to compete with some of its peers in the seasonal fashion show, that is, the fashion show at the same time, but he was the only designer who still invested in the "look to buy" mode. This marketing gimmick will help Tommy Hilfiger sell shirts for men and women and promote business development.

Zhongfu said: few (more popular) clothing brands can maintain such a sustained growth momentum, especially in contrast to rival brand contrast, such as CK, MK, Ralph Lauren, Diesel, Hilfiger growth is more noticeable. External environmental factors include the decline of us department stores, the fragmentation of the clothing market, and the emergence of new models such as fast fashion. However, Hilfiger can be very stable. First of all, it is related to the founder's position in the company. Secondly, the product has an easy to identify color matching and design concept. The focus of the brand is to sell energetic American classic clothes to people outside the United States and open up more clothing markets. Hilfiger himself has not been overly aggressive, but has been a brand ambassador with Hadid and Hamilton. This is different from other similar brand founders.

　　 GAP recession is just a sample. The best time for foreign fast fashion brands is over.

The latest report of GAP, an external fast fashion brand, showed that in November 2019, the GAP group's revenue in the first 3 quarters of the year was $11 billion 709 million, down 2.07% from the same period last year, earning 535 million dollars, down 26.41% from the same period last year. This is also the seventh consecutive quarterly decline in GAP sales. Data show that the first quarter of fiscal year 2019, Gap Group sales and profits have not reached analysts' expectations. The group's overall sales fell by 4%, while its three major brands, Gap, Old Navy and Banana Republic, fell 10%, 1% and 3%, respectively. Among them, comparable sales of Gap brands had the biggest decline in four years. It is worth noting that Old Navy is the only brand that keeps growing in 2017 and 2018. It is the star brand and cash cow of Gap group, but it also declined for the first time in three years.

China service network: GAP is becoming more and more difficult in China. It will soon become the first brand of four fast fashion brands GAP, H&M, ZARA and UNIQLO. But it is not easy to look at other fast fashion brands. New stores in the mainland hit a new low. In particular, GAP lacks a memory point in the minds of consumers. People's needs are gradually diversified. Naturally, more providers of solutions are needed. The era of big and complete win is over. For clothing, especially fast fashion brands, in the face of the stagnation and even exit of the Chinese market, we should think about how to catch up with the trend and catch up.