Where Is The Way Out For JEANSWEST'S "Sell" Casual Wear Brand In 986 Stores In 3?

"Really better" casual wear brand

In the twenty-fifth year after entering the Chinese mainland market, it is not like the slogan "better" in advertising language, nor can it see the dawn of a rebound in performance, and finally usher in the embarrassing outcome of being sold.

Recently, JEANSWEST parent company

The announcement said it would sell the mainland's clothing retail business, JEANSWEST brand, to the group's founder and largest shareholder, Yang Zhao and Yang Xun brothers, with a loss of HK $800 million, which is expected to generate an income of about 31 million 333 thousand yuan.

After the sale is completed, the group will no longer participate in any loss making business, focusing on interior design, decoration services and financial services.

Garment industry analyst Ma Gang is accepting "

"The two brothers of Hongkong and Yang Zhao, who founded the sunrise group in 1990, acquired the Australian flagship brand of Cowboy brand JEANSWEST. After 3 years, JEANSWEST entered the Chinese mainland market and expanded vigorously in ten years, occupying the half of the mainland's leisure clothing market," an interview with reporters said. "JEANSWEST"

Therefore, Yang's brothers are full of feelings for JEANSWEST. This acquisition, they will re build JEANSWEST brand, which is a good thing for JEANSWEST brand, and will usher in a new turn.

In response to the impact of this paction on its performance and market performance, the reporter has no answer to JEANSWEST.

JEANSWEST is sold

Public information shows that the sunrise group was founded in 1974. It was developed from a small processing factory mainly made of jeans in the early years to a diversified multinational enterprise centered on the Hongkong region of China. Its business scope includes trade, retail, garment production, real estate and financial investment, among which the mainland business is dominated by JEANSWEST brand.

Sunrise group said in the announcement that, despite the past few years, the company has restructured the retail network and improved the efficiency of the supply chain, making the product supply more flexible and accurate, putting more resources and publicity into product design and marketing, and launching online business to grasp China's expanding electricity supplier market.

However, as the market competition is becoming more intense, the rise of the electricity supplier has hit the store business. To date, JEANSWEST is hard to attract customers only by the reputation of "value for money".

Therefore, all efforts of the management did not bring substantial improvement to JEANSWEST's mainland business.

Asahi group also said that as of the first 5 months of May 31, 2018, the first 12 months of December 31, 2017 and the first 12 months of December 31, 2016, JEANSWEST's mainland China business recorded pre tax profits of HK $-4532, HK $-5045.3, HK $31 million 199 thousand, and after tax profits of HK $-4594.2, HK $-4509.6 and HK $66 million 747 thousand.

In fact, by combing with reporters, the total business volume of JEANSWEST continued to show a downward trend since 2013, and the decline in the 2013-2017 years was 0.7%, 13.32%, 25.91%, 23.98% and 4.37% respectively.

An industry insider told reporters that the sunrise group divest JEANSWEST's mainland business, which is exactly the same as before selling the Australian business.

Factors such as poor performance, continuous losses, and difficult business recovery are all the underlying reasons for this paction.

Coincidentally, in July 2017, sunrise group sold Australia's JEANSWEST business for two consecutive years at a price of HK $220 million, and the recipients were Yang Zhao and Yang Xun brothers.

For JEANSWEST

The reasons for the failure, Ma Gang told reporters, the past 10 years of changes in the consumption environment over the past 30 years of change, a large number of online retail rise, offline fast fashion rise, consumption stratification, forming different consumption characteristics, obviously JEANSWEST has not adapted to the mainland consumption environment change.

Where is the way out?

According to the Asahi Group annual report, as of the end of fiscal year 2017, JEANSWEST operates 1298 stores in the country, compared with 2284 stores at the end of 2014.

In the past three years, 986 stores have been shut down, averaging nearly one store a day.

"The same as Metersbonwe, JEANSWEST is China's 1990s street wear brand, but nowadays few consumers choose this brand again. Emerging consumers are not familiar with this brand. Therefore, JEANSWEST's top priority is how to make emerging consumers reconsider and accept this brand."

Ma Gang said.

As a leading industry, it is now in a serious loss and can not escape the fate of being sold. The rise and fall of JEANSWEST is a microcosm of the current predicament of the entire garment industry.

It is worth mentioning that behind the loss of JEANSWEST, Metersbonwe, Baleno, Giordano and other domestic brands in the past have been experiencing the same predicament as JEANSWEST in recent years.

Ma Gang admitted to reporters that at present, the whole leisure clothing category in China is facing the following problems: first, the market competition is too fierce, and the fast fashion + brand has a serious encroachment on the market share; two, the connection between brand and emerging consumption is weak, leading to the decline of brand loyalty; the three is the rigid management team thinking, which is seriously out of line with the market, the poor innovation ability, and the serious homogenization of products.

For the future development of JEANSWEST and other leisure apparel brands, many industry experts generally believe that the most important thing is to identify the brand consumer group, and then do the decomposition of products and marketing, so as to achieve the goal of upgrading, personalization and IP of the product.