Esprit France Closes 17 Branches To Expand Expansion

Si Jie is likely to close 17 branches in France, and continue to expand mainly through department stores. The brand has recently announced its return to Paris spring department store. The new store is located on the five floor with a total of 84 square meters, all of which are women's wear series. Si Jie has been redesigning its series in recent seasons. The new store is also adjacent to brands such as Zadig & Voltaire, Diesel, Suncoo, Eleven Paris and Sud Express.

Young people who like Esprit can no longer find it in Tianhe City. This target group of customers, 25 to 40 years old, has been caught up in the boom after China experienced rapid growth. Only 38 stores closed nationwide last year. In addition to rising cost pressures and electricity supplier shocks, E sprit still sticks to the old model in marketing mode, compared with the marketing transformation and upgrading of Z ARA and H&M. Esprit still follows the traditional mode of price reduction promotion.

　　 38 shops close to Esprit were poorly managed.

Once upon a time, Esprit's tide card from the United States was the favorite of many fashionable men and women in China. The design concept and marketing strategy of "caring about mentality instead of age" has helped its sales increase many times, and has created a miracle of 50% growth in China for 3 consecutive years.

Recently, Esprit's parent company announced that its sales in the mainland market fell by more than 20%. In the first half of fiscal year 2013/2014, sales in the mainland market fell by 24.5% to HK $984 million, of which retail channel sales fell by 13.1% and wholesale channel sales dropped by 43.2%.

Si Jie said that the loss was mainly due to the acquisition and impairment of goodwill impairment, closing stores and stale inventories of Chinese associated companies, which amounted to about HK $2 billion 722 million. Closing the stores and saving costs is an important step in the global restructuring plan, and the mainland market is no exception. Esprit Shanghai CITIC Pacific Plaza flagship store, Beijing Sanlitun Taigu store and Guangzhou Tianhe City store have been closed down. The interim report shows that Esprit has reduced 38 stores in China last year, with 333 existing stores. M artinez, the chief executive of Si Jie global, said in an interview with the media that Esprit did not take the initiative to close the Chinese stores. The decrease in the stores was due to the failure to agree with the market rent.

But in the eyes of the industry, this seems to be a pretext, which has attracted a lot of attention from other shopping malls to attract other fast fashion brands such as Zara, H& M and so on without rent or low rent. Analysis of the industry, the key lies in the poor operation of E sprit, especially in the face of such as Zara, H & M, and constantly break through the bottleneck of marketing, innovation and change, E sprit is still sticking to the rules.

　　 Z ARA, H & M marketing strategy: multiple, low price, small amount.

One side is Esprit On the other hand, the cost of the store is one such as Zara, H & M. Take H & M as an example, last month, H & M opened seventh stores in Guangzhou's West City stores. In January 10th, H & M was also stationed in Huizhou's Good Fortune Plaza, which is the sixth city of H & M in Guangdong. So far, all the stores in Guangdong have broken through 23 and become the largest provincial market of H & M in China.

The same is a physical store, why business is different, and why the latter rise against the market, can its success become a blueprint for fast fashion brands?

Ceng Jingxin, a fast fashion marketing consultant, said that the fast fashion Zara and H&M marketing strategies can be summed up in six words: low price, multiple funds and a small amount. Both break the tradition. Clothing industry One season, one change, and the same season will continue to introduce new products. This will inevitably attract consumers' desire to shop. In addition, two enterprises have established a strong information sharing system. Almost every store has installed information systems. In the era of big data, marketing information has become a key link.

In the era of soaring prices, Zara, H & M are relatively smarter in terms of target groups' price and promotional strategies. According to the official information released by the two, the target group can be summed up as "high sensitivity to fashion and have a certain ability to consume, but they do not have the ability to constantly consume high-end luxury brands". The price of the two is more than E sprit, and the average price is lower than the latter 10% to 20%.

In addition, two fast fashion implements a small number of products out of stock strategy, inventory is small, if consumers do not buy at the first time, there is no risk to buy, only a small number of unwelcome products remain at the end of the season or the end of the year discount. According to statistics, the average number of discounted goods accounts for about 15% to 18% of the total number of products, about half the competitors.

Although the quality of the two products is often criticized, but because of the frequent listing of new models, its cost reduction depends on the volume of sales and profits. H & M is to "zero tolerance" to price. According to statistics, H & M Latest fashion The price is about 30% to 50% lower than that of ZA R A.

　　 Fast fashion A P P push service housekeeper

In addition, Esprit advertising strategy has been approved "simple and crude". Ceng Jingxin said that E sprit still followed the invitation of celebrity endorsement, supplemented by simple publicity and promotion, which had to be said that it was not worth it. On the contrary, ZA R A hardly advertised. The public data showed that its advertising cost accounted for only 0-0.3% of its sales, while the industry average was 3.5%. The savings of advertising expenses became one of the sources of profits. And H & M has little advertising input, and most outdoor advertising boards are only placed in the mall. Its biggest publicity may be the constant emphasis on cooperation between the brand and the international design masters, and every quarter will emphasize its designer's status and philosophy.

In addition to the above marketing strategy, smart cloud C E O Chen Xuepin believes that in this era of user experience king, the key is to seize the hearts of consumers, and the core competitiveness of future stores is the user experience. "User experience is one of the key factors for consumers to decide whether to form a final purchase, and experience is unmatched by online e-commerce. Stores should make more efforts in user experience and re-examine the value of channels." Chen Xuepin said that fast fashion brands can learn from Apple's experience mode. Even though online shopping is convenient and users know a lot about Apple, many people are still willing to go to the physical store to consume. This is mainly due to the user experience perception created by apple.