The Trade Friction Has Played A Prelude To The Collapse, And The Clothing Giant Has Announced Its Withdrawal From Asia.

Esprit, the US clothing giant, announced that it would close its stores in May 31st and withdraw from Asia. According to relevant information, the Esprit was founded in 1968 by the American young Douglas Tompkins, and is also the founder of the famous sports brand "The North Face". In 1992, ESPRIT entered the Chinese mainland market. The time of entering the Chinese market was 10 years earlier than that of UNIQLO, but its market share in China in recent years has been decreasing year by year, and at the same time, it has also taken a distance from the market share of UNIQLO. Recently, ESPRIT's China store and its official website sold inventory through 90 percent off. In April, Tmall flagship store also joined the discount sale queue. The ESPRIT clothing giant announced its withdrawal from Asia.

Esprit's departure in China can be divided into the following points:

First, the insufficiency of the existing products, and the failure of the National Consumers' demand to satisfy them.

Ke Qinghui, chairman of Si Jie global, once said that the existing product design and size of Esprit in the Chinese market failed to meet the needs of Chinese consumers, which was a major reason for its sluggish sales. The product is always the core competitiveness of a brand. Esprit's products, whether in its style and design, are single or obsolete, or the number of codes does not match the needs of Chinese consumers, make them suffer great losses in the market competitiveness. At the same time, Esprit also needs to face the impact of the brand competitiveness of the same industry, and its own product shortages make it completely lose its competitiveness in the market. China's market has a strong potential for consumption. In the face of China's huge market capacity, Esprit's parent company, Si Jie universal, has been determined to make multiple adjustments to try to occupy the Chinese market share, and plans to set up 220 stores in China by 2023.

In the face of China's strong demand market, the design and code that do not match the needs of Chinese consumers can only choose to leave in a dark mood. By the end of this month, Esprit will close its Chinese stores and withdraw from Asia. The sluggish sales performance makes it difficult for the American Apparel giant to maintain its normal operation in the Chinese market under the impact of the epidemic, and its performance in the Asian market is also worrying. With multiple adjustments and layout, it is difficult for China to occupy the Chinese garment market share with sufficient competitiveness to acquire large numbers of consumers. Si Jie world keeps shrinking its front line, closing its stores in the Chinese market and leaving Asia, leaving only the European market.

Esprit, a well-known brand after 80 and 90, will officially announce the end of the Chinese market after May, following the nearly ten years passed by the young garrison.

According to relevant analysts, ESPRIT's position in the Chinese market in the past ten years has been blurred and uncertain, resulting in its gradual decline in the impact of high-ranking retail brands such as Zara and UNIQLO, resulting in the eventual withdrawal from the Chinese market. According to relevant information, we can learn that Esprit has exposed the related problems, whether product positioning or channel structure and operation management. Faced with the problem of handling the problem is very clear out of control, declining performance data real feedback in its performance sales and market share. Faced with the lack of competitiveness, the withdrawal is an inevitable outcome regardless of whether Esprit is affected by the epidemic.

Two, financial revenue decline and loss

According to the relevant data, from 2011 to 2019, Esprit's operating income continued to decline year by year, resulting in frequent losses. Once, between 1993 and 2007, ESPRIT had more than 300 stores. Si Jie global stock price is increased by 65 times, it can be said that the Hongkong generation "stock king". When the financial crisis broke out in 2008, the operation of Si Jie global also began to dissipate its old aura. From the peak position of its "stock king" so far, the price of Si Jie global has fallen all the way over 99%, and its market value has shrunk from an astonishing shrinkage of HK $about 170000000000 to HK $1 billion 100 million.

The reduction of brand value and worrying financial situation make Esprit's normal operation and operation in China face survival problems. The outbreak of the global epidemic is a severe blow to Esprit. According to the financial times, economist Song Qinghui pointed out that "in recent years, the development of Esprit has not been ideal. For the time being, whether it is clearing up, closing stores or withdrawing from the Chinese market, the root cause is the continuous poor performance of the whole group. "It is learnt that, apart from China's gloomy departure, Esprit will also close its 56 stores in Asia besides China. It can be seen that Esprit faces enormous challenges in its operation and operation in Asia. Whether China or Asia as a whole, the withdrawal of large stores will be a major strategic adjustment of Esprit. The following is the nine month group income profile of ESPRIT's parent company, which ended in the first quarter of 2020:

According to the recent income situation in Asian market, we can see that from June 2019 to March 2020, the Asian regional market share of Esprit accounted for 6.8% of the first quarter of 2020 from 10% in the second half of 2020.

Three. Esprit is one of the many overseas garment giants who have left the Chinese market.

The closure of Esprit stores in the Chinese market and the withdrawal in Asian markets are not the minority of overseas apparel giants. It has long been a rare event for overseas famous clothing to withdraw from the Chinese market. Previously, New Look, Asos, Topshop, Forever 21 and other brands have been evacuated from China, including the famous brand of overseas apparel retail giant GAP Navy Navy, and the withdrawal of major overseas clothing brands is a common market example in the apparel industry market. Faced with this strong market demand, many overseas apparel giants have been trying to seize the Chinese market share in the Chinese market, and a number of enterprises have failed in the clearing mode. The competition of garment industry in China and the deployment of business scale in the global strategy have retained the competitive brand of clothing giants in a clearing mode. Overseas clothing brands that have grabbed the Chinese market with strong market competitiveness year after year have also taken a strong stance in the Chinese market.

Four, under the impact of the global epidemic, the clothing giants shut down stores around the world.

The United States economic turmoil, the impact of global public health events, the test of the industry can be seen grim. According to relevant reports, in March, Spain's fast fashion giant ARA parent company Inditex closed 3785 stores worldwide. The German sports brand Puma also closed nearly 80% of its stores in the first quarter of this year. The strategic adjustment of maintaining the normal operation of enterprises in this rigorous test is frequent in the global market by reducing stores and reducing costs.

Five, China's economic recovery in the epidemic has led factories in China to return to work.

It is reported that Puma, Nike and other well-known brands in China's factories have been fully resumed. The outbreak of the new crown outbreak has led China to take the lead in achieving economic recovery both at home and internationally. This is an early economic recovery in the world. In the wake of the economic recovery, the demand for the Chinese market has also been restored. In the face of China's two largest economy in the world, its booming demand has led many overseas garment giants to focus their attention on the strategic deployment of their market share. The analysis indicates that the expected retail performance in China will provide important support for many brands.