Brand Aging And Stubborn Disease Is Difficult To Eliminate Except For Nearly 4 Billion 400 Million Of Si Jie'S Global Losses.

< p > > span style= "font-size: 12px"; "H&M", "UNIQLO" and Zara attacks, reflecting the two E sprit and E DC of "Si Jie".

Under the siege of fast rising fashion giants such as H&M, UNIQLO, Zara and so on, the revival of Sijie global with E sprit and E DC two brands is extremely difficult. < p >

Its annual report released as of June 30, 2013 last week showed that its turnover fell by 14.13% to HK $25 billion 900 million, while net profit appeared the first loss in the first 20 years, and it was far more than the market expected, a huge deficit of HK $4 billion 388 million, which achieved a net profit of HK $873 million last year.

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< p > < strong > 6 years of hard times < /strong > < /p >

P has successfully written the myth of Esprit youth brand. In recent years, with the blurring of brand image, management and business strategy have changed frequently, and performance has been retrogressive.

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P is a fashion brand myth. From 1993 to 2008, its sales revenue increased from HK $770 million in 1993 to HK $37 billion 200 million in 2008. Net profit increased from HK $78 million in 1993 to HK $6 billion 400 million in 2008.

The annual compound growth rate of operating income and net profit is 29.5% and 34.1% respectively.

However, such rapid growth has been confronted with the global financial crisis in 2008, and all problems seem to be exposed overnight.

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< p > in the next 6 years, its sales revenue and net profit have been in an unprecedented predicament, and there has been a 6 consecutive drop.

Its sales in 2008 to fiscal 2012 fell from HK $37 billion 200 million to HK $30 billion 165 million in 2012, while net profit fell from HK $6 billion 400 million to HK $873 million.

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< p > "as the first fast fashion brand in China, Esprit is already half old."

A senior a href= "//www.sjfzxm.com/" target= "_blank" > clothing < /a > industry people so evaluate the present status of Esprit.

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< p > in the 5 years of labor pains, we can see that this year's performance is quite tragic.

According to its annual report, the main reason for the group's performance losses is non recurrent provision and impairment of 2 billion 720 million yuan, including the impairment of goodwill in the mainland, the closure of stores and the provision of obsolete stock.

If the above allowance is deleted, the operating loss will be 530 million yuan, and the profit will be 920 million yuan in the same period last year.

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< p > by the end of June this year, the number of Si Jie global stores was 1024, a year-on-year net loss of 42, while the overall sales level of the same store also dropped by about 3.3% compared with last year.

Si Jie global also estimated that the next fiscal year will be a pition period for the group, with a slight decrease in turnover and a slight decrease in gross margin.

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< p > < strong > brand aging disease is difficult to eliminate < /strong > < /p >

The global market performance of P is not good enough, but its market in China is not very good.

In the 2012-2013 fiscal year, its share in the Chinese market increased from 9.3% last year to 9.3%, but its business declined slightly from 6.6% to HK $2 billion 416 million.

"Sales can not support costs, Esprit many franchisees have left."

Zhang Bingliang, general manager of Shanghai lion Consulting Management Co., Ltd., told reporters.

This is evident from the performance of China in its annual report.

Its wholesale turnover fell by 22.9% in local currency terms.

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< p > in fact, E sprit also tried to adjust her train of thought.

Last August, a new chief executive officer, JoseM artinez, a former distributor and operation director, was poaching from Zara's parent company Inditex.

In March this year, it hired three top Inditex executives: JuanChaparro, ElenaLazcanotegui and Jos A ntonioRam OS.

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< p > but Zhang Bingliang thinks that E sprit and Zara and other fast fashion brands have different ideas. The latter are mainly direct stores, and generally do not adopt the mode of distribution or affiliate.

Zhang Bingliang said that although Zara and other executives are trying to adjust their distribution system after entering, but if E sprit's own product line can not be fully adjusted, adjusting the channel can not solve the fundamental problem.

"Esprit's biggest problem is the serious aging of the brand."

Zhang Bingliang pointed out.

However, from the point of view of price positioning, Esprit will even be higher than the general fast fashion brand, which will make Esprit and the fast fashion giant who are currently in the Chinese market more competitive.

"Regardless of its quality, design popularity, brand promotion are lagging behind Zara and other fast fashion brands."

Zhang Bingliang believes that once consumers feel the brand is out of date and leave, it will be hard to recover this part of the consumer.

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"P > Group CEO JoseM artinez said in May this year," it is more optimistic that 2015 is the beginning of group recovery. "

The company abandoned the 4 year a href= "//www.sjfzxm.com/news/index_s.asp" pformation /a plan, which was launched in 2011, to save costs as a short-term goal and to make products value for money in the future direction of pformation.

From this point of view, it is difficult for SG to restore its vitality.

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