J.Crew Is Facing Huge Adjustment In Raising Prices.

Retailers in the so-called sports leisure series have not been able to seize the opportunity to shine. Clothing companies including Lululemon, AnnTaylor and OldNavy have introduced leisure Yoga suits, which are suitable for exercise or everyday occasions. But J.Crew did not see this opportunity.

But in recent years, J.Crew is also facing a more severe challenge in the process of constantly raising the price. Fast fashion brands such as H&M and Zara are rising rapidly. At the same time, the quality of clothing is constantly optimized at low prices, which makes J.Crew, which is not close to the people, gradually loses its original charm.

A J.Crew store in Manhattan. Performance is declining. Executives warn that performance will not improve in a short time. A J.Crew store in Manhattan. Performance is declining. Executives warn that performance will not improve in a short time.

The upcoming J.Crew series will consist of a $450 neon floral sweater, and a "luxurious" straw gray cashmere Jersey. "It's called the ultimate luxury because the fabric of this garment is removed by hand workers, and then manually sewed, creating a very light and soft texture." Of course, the luxurious price is not bad. It costs 1500 dollars for such a Hoodie.

Analysts say J.Crew This series of expensive prices keeps customers shopping at high-end department stores gradually away from them. Because the most powerful growth of the apparel retailing industry is actually in the low-end brand area. Clothing discount stores like T.J.Maxx and Marshall are growing rapidly. Among the three brands of Gap, the fastest growth is the lowest price - OldNavy has the most outstanding performance among the three brands.

Even in the high-end department stores, the fastest growing sales are the parity clothing. This year, Sax boutique stores opened a new store on Fifth Avenue, but Sax recently plans to open another 12 new department stores in other locations. Nord's department store plans to open 27 new stores this year. In May, Messi's Department announced that it would open a new Messi parity store, the Macy's sBackstage, in four pilot projects.

J.Crew is also trying to catch up with this trend. The company plans to open another 21 low-cost factory brand stores this year.

Drexler is well aware of the fragility of the fashion industry. He was well known for his design of khaki collar button series office uniforms in 1990s when he worked for Gap. During Gap, he created the brand of OldNavy.

But at the beginning of this century, he was no longer effective. The customers who searched for classic Khaki shirts at Gap stores found that they were filled with pink corduroy trousers with embedded rivets and a green green jersey with a glittering "fabulous". Gap At a respectful distance, after 24 consecutive months of same store sales decline, Drexler was finally swept out.

A year before Drexler's class ended, in 2003, he joined J.Crew and earned himself the honor of resurrecting the immature retail brand. Brightly colored Ballet's flat shoes and classic, full of vitality, well tailored designs are emerging one after another.

In 2011, J.Crew was privatized after the acquisition of two private equity funds (TPG and LeonardGreen&Partners). With regard to the acquisition of TPG, they hope that the lightning of fashion can shine second times, because TPG bought J.Crew once in 1997, and recovered the profit equivalent to seven times the investment cost.

"We are still full of confidence in the future growth of J.Crew," Drexler said in an e-mail. "Although our performance has not yet reached the ideal level, we are also making some necessary adjustments to the products to provide customers with their favorite and favorite clothes."

Credit analyst at Barclays Bank, UK Hale Holden There is a "overweight" parity for J.Crew's liabilities, he said, and investors are very divided on the future of J.Crew.

"It really depends on whether you believe in the fashion cycle of fashion trends, and whether you can find a way out of this cycle for yourself," Holton said. "But business gloomy may also be that your bad design has gradually destroyed the original charm of the brand, so that customers can lose interest in you."