Xiaduo Women'S Clothing Giant To Close

For girls who love beauty, it is the most troublesome to change seasons, because they are faced with the problem of clothes selection. The demand for women's clothing will surge every season. So the demand of women's wear market has been huge, there is a market if there is demand. However, the development of many women's clothing enterprises is not ideal. La chapel is one of China's leading women's clothing companies, known as the "Chinese version of Zara.". It is also the first clothing company to be listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange. However, rachabel now faces a series of problems.

According to public information, La Chapelle was established in 1998 as a chain retail enterprise of private brand clothing with multi brand operation. It is mainly engaged in clothing independent design and research, outsourcing production, brand promotion and direct sales. It owns a variety of brands such as LaChapelle and puella.

However, just a few days ago, there was a news that La chapel closed 13 stores every day, which attracted people's attention, but also opened the fact that the business of La chapel was dismal. Founded in 1998, La chapel focuses on women's casual wear and was listed on the Shanghai Stock Exchange in 2017. The reason why La chapel has a firm foothold in the women's wear market is due to its founder, Xing Jiaxing. In the early days, he used 500000 yuan and two fashion designers to create La chapel. In the first year, La chapel used Zara's model to generate millions of sales.

After stable development, the number of La chapel's stores in the country reached 1841 in 2011. At the same time, Xing Jiaxing is constantly improving the speed of new store development and increasing brand awareness. With the efforts of Xing Jiaxing, there are more and more stores in La chapel.

In 2017, La chapel ushered in a high-level moment, with 9448 stores opened in stores all over the country, with revenue of nearly 10.4 billion yuan, becoming the highest revenue women's clothing listed enterprise in China. At that time, La chapel's development plan was "to break through 10000 offline stores by 2020".

Later, La chapel went public, with a market value of 12 billion US dollars, becoming a real women's clothing giant. After glory, however, is darkness.

In the clothing industry, inventory is the most difficult pressure for enterprises to bear, and because of the rapid expansion of high inventory, shortage of funds and other problems began to appear. In 2015 and 2016, lashabel's inventory exceeded 1.7 billion yuan. In order to deal with the high inventory, rachabel had to sell out. Meanwhile, in an effort to cut costs, La chapel began closing stores. However, the closure of 1000 stores is still a huge loss, with a loss of 2.1 billion.

In the face of financial losses and debt crisis, rachabel chose to break his arm to survive. Even the headquarters building was rented out. To make matters worse, however, La chapel's share price fell nearly 80% in a year because its actual owner defaulted on a stock pledge. It is safe to say that La chapel is on the verge of delisting. I have to say, La chapel, the famous women's clothing company is going to be cold. Why did rachabel get there?

First of all, rashabel's blind expansion has brought financial pressure. In addition, La chapel pays too much attention to the development of offline stores and ignores the development of online stores. Now that e-commerce has risen, La chapel has missed a good opportunity for online layout. However, the price of charlabel is not good enough for ordinary consumers, but it is not always good for the consumers to buy the products.

In fact, the surge in inventories has been a big burden on La charbelle. According to the data, as of the end of September 2018, the inventory amount of La chapel was 2.7 billion yuan, accounting for 32.46% of the total assets. Compared with 1.756 billion yuan at the end of 2015, this figure increased by nearly 1 billion yuan.

To sum up, it remains to be seen what happens next as many stores close, losses increase and debt increases.