Once, it made Xing Li become the top 500 richest man in the world, and then greeted Lin Qingxia and embarked on the peak of his life;
Once, it was a fashion-oriented ready-to-wear kingdom, and it still expanded in the financial turmoil, with over 6,000 stores;
Once, it was selected for the Hong Kong Hang Seng Index, with a total market capitalization of more than 130 billion Hong Kong dollars and a net profit of HK$ 6.45 billion.
Later, Xing Liyuan left, short-selling stocks, and the other two founders also left. It ended the 15-year double-digit high growth, retreats, and finally fell into a huge loss, and was excluded from the Hang Seng Index;
Later, it invited the former top of the competitors, shut down the Qianjia store, broke the arm and saved themselves, turned losses into profits, but people seem to have forgotten it; perhaps, if the product can not become fashionable, doing more things is only extended What time is it?
Recently, the clothing brand Esprit parent company Esprit released its second half of 2016 results announcement. The group's revenue was 8.323 billion Hong Kong dollars, down 9.9% year-on-year. Net profit was approximately HK$61 million, reversing the Group's loss of HK$238 million in the same period in 2015, with initial profit.
However, you may think that the plot is to live a happy life. In FY2014, it once turned a profit, but it turned out that it was just a short-lived, not too happy to be too early.
In fact, this Esprit can turn a profit, mainly benefiting from measures such as closing stores and promoting price cuts. According to the data, as of the end of 2016, Esprit had a total of 6,161 stores, a decrease of 1,376 stores compared with the beginning of the year, which is about 18.26% of the total number of stores. Esprit Mall is mainly concentrated in Europe. In 2016, there were 108 net-clearance stores in the Asia-Pacific region, leaving only 158.
Then, this former Esprit brand familiar with the 80s, once the king of Hong Kong stock fashion, how to create a total market value of more than 130 billion Hong Kong dollars, and how to be pushed from the fast fashion to the era of the beach from the heyday? Can you regain the glory of the past in the future?
Xing Li? From scratch to the peak of life
First of all, let's talk about Mr. Lin Qingxia's Mr. Xing Li, who started from scratch.
Xing Li?, born in Hong Kong in 1949. After graduating from high school, Xing Li decided to give up his studies and switch to a fresh social work. In 1969, Xing Li joined the Migao Weaving Factory opened by Chen Shiying as a quality control worker. Because Xing and Chen are both Hainan fellows and three generations of the world, and Chen Shiying believes that Xing Li has the unique flexibility of the businessman; therefore, Chen Shiying took the initiative to lend money to Xing Li to open a garment factory.
In 1972, the founders of Esprit, Susie and Douglas Tompkins, came to Hong Kong and hope to continue to promote Esprit's ready-to-wear business with the relatively low procurement costs in Asia. According to Chen Shiying's introduction, the garment factory operated by Xing Li? became one of the sources of Esprit procurement.
In 1974, based on the trust established by each other, Xing Li and the American couple each invested half of them, established "Far East Co., Ltd." in Hong Kong, and mainly engaged in the procurement agency business of "Esprit de Corp", expanding ESPRIT in Asia. business. Since then, through his one-third share of shares, Xing Li began to promote the Esprit fashion wholesale business to the world based on Hong Kong.
In 1981, Xing Li was keenly seized the opportunity to open ESPRIT's first retail store in Causeway Bay, Hong Kong, and began the wading retail business, transforming the brand building road.
Although the previous period was overconfident, it caused a lot of suffering, but because of this, those experiences laid the foundation for Esprit to choose the best way to open a store. After that, ESPRIT retail stores were established in Singapore, Taiwan and Shanghai.
In 1993, after Esprit Holdings was listed in Hong Kong, Xing Li started a 10-year acquisition. He bought ESPRIT, ESPRIT, ESPRIT's parent company, and purchased REDEARTH cosmetics, which laid the foundation for Esprit Holdings. The foundation of a business.
In 1997, Hong Kong's financial turmoil, bold Xing Li? not only did not slow down the expansion rate, but the Hong Kong store rents plummeted, rapidly expanding, and opened several large ESPRIT composite concept stores.
In 1998, ESPRIT was listed in London.
At the same time, in order to fully own the ESPRIT brand, in 1996, on the occasion of the divorce of the ESPRIT founders and couples, Xing Li bought a 63% stake in ESPRIT in the US; then, in 2002, he bought the remaining NT$5.4 billion. The 37% equity of the company has 100% success in owning the US ESPRIT trademark.
In the same year, ESPRIT stocks were among the constituents of the Hang Seng Index, but compared with these two happy events, Xing Li? believes that “it is more important for me to buy the US business.â€
In addition, after finding the Czech-born German Kroner as the president of ESPRIT Europe, the European experience of the experience, let the talented Xing Li?, in 2002, gave up the CEO position, by Kroner as CEO However, Kroner did not disappoint Xing Liyuan. From July 2002 to July 2003, ESPRIT's revenue was close to 12.4 billion Hong Kong dollars, with a profit of nearly 1.2 billion Hong Kong dollars, with growth rates of 34% and 28% respectively.
And Xing Li?, not only let go of the bold, the opponent will be very generous. It is reported that with the annual income of the warrants, Kroner had nearly HK$160 million in 2002 and became the new generation of “employed emperor†in Hong Kong.
In addition to Kroner, ESPRIT's chief financial officer is Chinese-Canadian, the global retail business is headed by Americans, the image director is Singaporean, and the wholesale business is led by the Germans, successfully creating an international team.
Since then, the ESPRIT ready-to-wear kingdom has expanded rapidly and is spread all over the world like Gap! At its peak, even Fan Bingbing was photographed in his brand shopping scene.
In 2003, the world's richest people published by Forbes showed that there were 587 billionaires with more than $1 billion in wealth. Among them, Xing Li was ranked 310th with $1.8 billion, becoming the richest man on the list. New face.
Ending 15-year double-digit growth
Surprisingly, in 2006, Xing Li resigned from the chairman and CEO of the Esprit parent company Esprit Global Group and continued to reduce its shares until it was completely emptied in 2010.
Since then, Esprit has gradually shown its decline. In fiscal 2009, it ended the 15-year double-digit growth and entered the landslide phase.
With the decline in performance, Esprit's high-level changes are also very frequent, and all three founders have withdrawn.
In order to save the loss of Esprit, in addition to the highly competitive North American market, in 2012, Esprit, which was hit by Zara and other fast fashion brands, invited Zara’s former executive Ma Haosi and introduced three other Indy Initiative, the road to transformation has begun for five years.
The "breakup master" in the clothing industry
Interestingly, although the founders and couples created the brand with romance and love as their selling point, Esprit is a famous “breakup master†in the clothing industry. The founder, major shareholder and spokesperson are not missed.
As mentioned earlier, the founder couple divorced after 20 years;
In 2012, Esprit's Brazilian female model Gisele Bundchen endorsed the brand, the dew girl in the industry, football star Ronaldo, movie star Leonardo, and football star Brandi are her passers-by.
Later, it was said that Lin Qingxia was divorced, but so far there is no truth.
However, these are all ridicules. I have seen them before.
Fast fashion "fast, ambiguous, accurate"
However, in addition to the large-scale macroeconomic situation such as the shrinking global economic contraction and the weak recovery of the European market, Esprit, which has not kept pace with the times, has not gained much competitiveness in the face of fast fashion and strong market grabs.
The so-called "fast fashion" is characterized by "quick, ambiguous and accurate". "Fast" means that fast fashion apparel follows the trend of the season, the speed of new products to the store is fast, and the display window display frequency is high. â€œç‹ â€ means that consumers are buying fast fashion and dressing at a considerable speed, and they are “stunned†and often change to “moonlight familyâ€. "Quasi" means that the designer's vision is accurate, predicting the trend of the recent period, and designing all kinds of trendy clothing in a short period of time; and when consumers choose the goods, they will buy them without any hesitation.
In addition, in terms of price attractiveness, fast fashion brands are not too much. Through the latest international conferences and other channels to collect fashion information for integrated design, and then to production and sales, fast fashion can be as short as 12 days, but the price is less than 1/10 of the international big-name similar style. Moreover, the production of each garment in the fast fashion is very small, and the clothing style produced every year is three to four times that of the average enterprise. The products are replaced every week, and there will be no more duplicates when the goods are sold out. For young people who are now pursuing individuality, it is very easy to evoke a strong desire to buy.
And although Esprit mimics the fast fashion model, the development of clothing products, design concepts, etc. between the two, Esprit's chaotic positioning has always been a problem, which in turn affects the pricing of products, plus frequent discount promotions, affecting consumers. Esprit has changed from a fashion leader to a basic model for the discount season.
Can you regain your glory?
However, Esprit has been trying to change, trying to attract the attention of young consumers again. The spokesperson for the new season in 2016 is Song Hye Kyo, the female lord of the "Sun's Descendants." At the same time, Esprit is also embarking on e-commerce business, seeking online business expansion.
It is worth noting that in recent years, the competition between fast fashion brands has become more intense, and domestic sports brands are also growing. According to the data, sports revenue for the whole year of 2016 was RMB 13.35 billion, a year-on-year increase of 20%. There are 9,668 sales outlets, far exceeding Esprit.
In addition, in recent years, the real economy has been weak, and the main customers have changed. Around the “post-80sâ€, “post-90s†and “post-00s†and other groups, the need to meet the individualized and diversified needs of target customers also needs to be actively promoted. In other words, no matter how many tricks you play, Esprit must ultimately rely on the product to win the final victory, otherwise it will only extend the brand's death time, or accelerate the pace of death.
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