Esprit Sharp Decline In Chinese Stores Last Year

Sales performance in the mainland market is indeed disappointing: < p > strong > a href= "//www.sjfzxm.com/pioneer/" > Esprit < /a > sales in the mainland market.

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< p > the latest interim results released by Si Jie global show that 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%.

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< p > closing the stores and saving costs is an important step in the ongoing pformation plan of the global capital, and the mainland market is no exception.

In the past two years, the flagship store of CITIC Pacific Plaza in Shanghai and Beijing Pacific store in Esprit have been closed down. The interim report shows that Esprit has reduced 38 stores in China last year, and there are 333 existing stores.

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Martinez, chief executive of P, said in a media interview that Esprit did not take the initiative to close the Chinese stores. The decrease in stores was due to the fact that the price of the lease had not been reached with the mall.

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< p > lease cannot be concluded. This has entered a huge contrast with some a href= "//www.sjfzxm.com/business/" > shopping mall < /a > attracting other fast fashion brands such as Zara and H&M by means of rent free or low rent.

People in the industry say that this is because SZP global sales per square meter can not reach the market rent free or low rent requirements.

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< p > Martinez attributed the sharp decline in sales in China last year to two major factors. First, wholesale distributors were more serious than they imagined; two, the closing of stores resulted in a further decline in wholesale sales that Esprit was leaving China and unwilling to invest.

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< p > "the Chinese market is very important. We can't lose the huge opportunity in this market. We will make every effort to succeed in China."

Martinez said.

At present, China is the third largest market in the world. The first market is Germany, which is its headquarters.

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< p > Martinez said that in January this year, it met with wholesale distributors in Shanghai and allowed wholesalers to return unsold goods.

At the same time, it announced the appointment of Ma Zhao an, former executive chairman of Giordano China as the managing director of China.

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"P" benefits from reducing operating expenses.

The interim results showed that the turnover of the company was HK $12 billion 810 million, down 5.5% from the same period last year. The company's shareholders accounted for HK $95 million in the first half of the year, compared with a loss of HK $465 million in the same period last year.

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< p > a foreign investment bank analyst said that the company has made good progress by shutting down its stores and withdrawing from the loss business, but has made great progress in the next step.

"Compared with other brands, the price of Esprit is still too high."

He said.

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< p > Martinez told reporters that the company has passed internal tests to prove that the business model can be pformed into a vertical business mode to better understand customer response.

At the same time, with the current system, suppliers and logistics systems, the delivery time can be reduced from the average 9~11 months to 3~4 months, and the delivery time of fast fashion brands is the same.

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< p > > a href= "http://sjfzxm.com/DESIGN/designer/index.asp" > Martinez < /a > introduction, the company began pricing tests in Taiwan 6 months ago, with a price range of 15%-30%.

But he did not want to reveal whether and when he could push the price down to other markets such as the mainland.

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