Mango And Esprit Brand Stores Shutting Down The Old Brand Fast Fashion For Ten Years

< p > on the one hand, many shopping centers attract the popularity of H&M, ZARA and Uniqlo at low rent and rent free ways in order to attract people's popularity. On the other hand, they are Mango, Esprit and IgG, the earliest veteran brands that are stationed in China.

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< p > compared with the rising stars in China, these forerunners have obviously fallen behind, and some are even at the edge of decline.

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< p > Spain a target= "_blank" href= "//www.sjfzxm.com/" > dress < /a > retailer Mango MNG Holding SLU SLU 10 released the plan before it will catch up with 4 new stores every week to catch up with the world's largest apparel retailer.

However, this is only for the global market. At present, the Mango official website shows that there are 115 stores in China, which shrank by 42.5% compared to 2012.

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< p > the fast fashion brand Esprit, which is headquartered in Hongkong, is also a new three year plan with "saving" as the core while the performance continues to decline. After closing the flagship store of more than 1000 square meters of CITIC Plaza in Shanghai last year, the gold store that has been active for five years in Beijing Sanlitun has also been declared closed.

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< p > embarrassing Chinese market < /p >

< p > in China, Mango takes advantage of the time advantage to seize the fast fashion position.

After opening the first store in China in 2002, there were 200 retail outlets in 80 cities in China in 10 years, but the shop speed was far from the successors ZARA and H&M.

Take H&M as an example. Last year alone, its number of new stores in China reached 339.

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< p > Beijing is the largest market for Mango stores in China. Originally there were 16 stores, but only 15 of the shops displayed in its official website were in Wuhan, and 3 in the Wuhan area were reduced to 2, while those in 5 were reduced to 2.

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< p > in Hangzhou, Mango is a big retreat. Media reports say that there are only 5 stores in Hangzhou, and only 1 of them have been shut down.

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< p > a person close to Mango told reporters that Mango's business model is different from other fast fashion brands, mainly through agents, so there are many restrictions on the circulation of goods and the efficiency of retail promotion.

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< p > "in Hangzhou, it is mainly because the relationship between agents is deteriorating and agents can not make money, and of course they do not."

These people said.

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< p > yesterday, as of press release, Mango has not responded to the issue of closing stores.

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< p > reporter saw in Shanghai's Mango store, the discount rate of some products has been reduced to 2~3 fold. An agent told reporters that the Mango store business is far less than H&M and ZARA, the inventory pressure is very large, the receivables cycle is longer, and sales can not rise.

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< p > in fact, the history of Mango is longer than that of Japanese brand UNIQLO, and its global market performance is not bad.

At present, through cost control and price reduction, the Mango global market has ended 2 consecutive years of profit decline.

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< p > by the end of 2012, Mango had opened 2600 stores in 107 countries, with a net increase of 300 stores in 2013 and a 79% increase in group net profit.

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< p > however, 84% of Mango's above results are from the international market.

In Mango's 2010 earnings report, which showed China's market performance for the last time, it said that sales in China accounted for only 2.7% of the global market (excluding VAT).

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< p > "ten year cycle" iron law? < /p >

Compared with Mango, the other two fast fashion brands, Esprit and AGG, are worse than P.

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< p > not only did not seize the main battlefield of China, but also the global operation of Esprit.

In the past 4 years, the sales volume of Esprit in the United States has fallen by 200 million US dollars. In the past year, Esprit has closed 93 stores worldwide.

Esprit, Forbes's magazine, is probably the five most likely parity of a target= "_blank" href= "//www.sjfzxm.com/".

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< p > at the same time, from last year to July this year, HKEx information showed that Si Jie world has also suffered many major holdings such as Marathon Asset Management LLP and BlackRock, Morgan chase and so on.

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< p > analysts believe that in addition to being unable to bear the "booming" rent, Esprit brand is aging, supply chain management is also lagging behind, unable to adapt to the pace of its expansion, so that its parent company's global profitability declined for 3 consecutive years, and management was unstable.

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P was the first to seize the brand of China's fast fashion beachhead. In 1994, the French IgG group set up a branch enterprise in Shanghai, the British model Clothing Co., Ltd., and opened its first store in Shanghai in 1995.

In 1997, IgG has opened 723 retail stores in China, with annual sales exceeding 900 million yuan.

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< p > but not long, AGG's brand activity in China is declining, even declining.

In the first half of this year, the sales of IgG in China decreased by 2.6%.

At the beginning of this year, IgG also reduced more than 100 department stores.

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Yang Dayun CEO, a fashion China CEO, told reporters that IgG had long been in the West in China. Many department stores had filled up with other fast fashion brands such as ONLY in the atrophy of IgG in China.

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< p > industry insiders say that fashion brands such as fast fashion have a "ten year cycle" iron rule in China, that is, if the brand has developed for ten years, if there is no progress, it will be replaced.

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< p > however, Cui Hongbo, founder of brand management in Shanghai, believes that this new old replacement is very normal in the clothing industry.

Cui Hongbo told reporters that there is indeed a cycle in the clothing industry. After the rapid boom, it is bound to pition to a stable stage of development. Then there will be a new trend. The brand that has been active for nearly ten years is like this.

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< p > self rescue road < /p >

< p > although they are in a passive position, these brands do not want to give up the fat in the Chinese market. They still want to regain market share through various "self rescue" ways.

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< p > at present, the strategy launched by Mango is to upgrade department stores to shopping centers and change its passive position in China by means of shopping centers.

In terms of business expansion, Mango will also open the first men's clothing store in China and seize a more niche market.

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In the global market, Mango plans to expand its product line, diversify its strategy, introduce children's clothing, accessories, underwear and a target= "_blank" href= "//www.sjfzxm.com/" > shoes /a products, P.

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P is better than Mango's initiative, and Esprit chooses a more conservative strategy.

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In addition to the strategy of changing the style and enhancing brand image, Esprit mentioned in the new three year plan introduced recently that the keynote will be "saving", and closing some human resources and rentable shops will be the first step in implementing the plan. P

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At the same time, these brands also say they will increase investment in e-commerce, but this measure is not optimistic about the market. P

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< p > Cui Hongbo said that if you are doing business on your own official website, it is absolutely worthless. It is neither an independent B2C nor a traffic volume. At the very least, it is just a commodity display platform.

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< p > "the principle of clothing brand lies in the selection of business circles under the line, and online selection of traffic volume."

Cui Hongbo suggested that the risk of making an independent B2C in the early stage of e-commerce platform is too great.

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