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Was Esprit Defeated By Zara And H&M?

2011/9/20 13:14:00 37

The world is changing so fast that the clothing industry is leading.

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The trend of Zara, H&M in the Chinese market, "attack the city to seize the village", and once white-collar favorite brand Esprit has collapsed.

Esprit Holdings Limited reported last week that the net profit of Esprit in the previous fiscal year fell 98% by the end of June 2011, which shocked the clothing industry and made Esprit fans feel dejected.

Fast fashion originator was eliminated by fast fashion.

Every 70 and 80 years have witnessed the glory of Esprit. It once stood upright in the department store with its simple youth wind and created countless sales miracles.

Esprit also made the legendary story of former chairman and movie star Brigitte Lin husband Xing Liyuan, who created legendary stories from migrant workers to buying companies as bosses, and also created the golden age of Esprit.

From 2001 to 2008, Esprit chain stores all over the world, stock prices rose 10 times, and the dividend payout ratio of 72% reached the reputation of Esprit's "banknote printing machine".

In the 80s of last century, Esprit, which opened the innovation mode of rapid design, production and retail, was the originator of "fast fashion". Only H&M and Zara latecomers took the lead in "fast fashion".

Cresta

The Esprit has also been sent to the cage.

"Designers lived ten years ago?"

There is a well-known saying in the clothing industry that there is no weak market and only weak products. Low cost performance is the main reason why Esprit has been abandoned.

A former Esprit Fan said that since 2004, the Esprit design has been getting worse, falling into a vicious circle of unclear positioning and wantonly discounts.

"Compared to the Zara and H&M in recent years, the price of Esprit is rather expensive, but the style is the same. Why should we buy it?"

The old style of Esprit has been widely criticized by designers.

"Designers have been living in the urban fringe, or living ten years ago."

Many former Esprit fans said they had no desire to try them on now.

However, it is biased to blame the decline of Esprit for its backward style. Zhang Xiaoyan, director of public affairs of Lining group, said that the major setback of Esprit's performance is the total outbreak of key links such as product design, channel development, internal management and brand marketing.

The main battlefield is losing ground.

The result of the outbreak of various problems is that Esprit has been losing ground in the main battlefield. Europe is the main source of income for Esprit parent company, and the total turnover of Esprit in Germany has been 2009.

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45% of the total, and now Europe has become a high loss area.

Of the 80 loss shops announced by Esprit, 65 are in Europe.

What is even more frightening is the decline in the confidence of agents. According to the financial report, the wholesale business in the second half of 2010 began to decline. Haitong Securities analyst said that the root cause of the sluggish wholesale business was the lack of confidence in agents and products.

In the face of a sharp plunge in performance, Esprit announced last week that it will launch a series of brand revitalization plans, including 18 billion 500 million yuan in the next 4 years to save the Esprit brand.

But in the industry's view, such self redemption is somewhat desperate.

"I'm worried that the Esprit diving is too big, and it will fall directly."

A fashion personage said.