It Is No Use Holding The Chinese Thigh For Help, But The Share Price Has Plummeted By 13%

It was 8 months late than expected. taylor swift The first flagship store in mainland China opened in Shanghai today. In order to save the depressed market in the United States, the importance of the overseas market is changing.

The first site of the first flagship store in China is Luxury brand LV rents, covers 1500 square meters, a total of four floors. At present, China has introduced all kinds of goods from underwear to perfume, but part of the price is higher than that in the United States. China is stepping up its pace to enter the Chinese market. Second flagship stores in Chengdu will open next month on the 10 th.

Last year, the company began to shift its focus to the Chinese market, and bought 26 rights from the Chinese agents.

According to the information collected by the world clothing shoe and hat net, the retail stores in Hongkong, Shanghai and Guangzhou are not directly operated by L Brands (NYSE:LB), but are represented by Malaysia Valiram group, which only sells perfume, beauty and accessories products, and does not include the core products underwear of the brand.

At the board meeting in 2000, the group management announced that in addition to the fact that the US market did not go anywhere, it decided to open a store in Canada in 2010, and then opened 3 Direct stores in the UK. After 2 years, it began to expand its dealership in other international markets. Underwear Completely separate from derivative products and authorize dealers. In addition to the Middle East market, no dealer currently has the authorization of underwear products, which is why the above Valiram group currently sells cosmetics and accessories only in stores in Malaysia and Hongkong, China.

In order to curry favor with more Chinese consumers, apart from setting up a direct store in China, the company also plans to move the annual Angel show to Shanghai. Chen Yong, director of the Shanghai Huangpu District Business Committee, confirmed the news in an interview with the morning news.

However, can the Chinese market really become a life-saving straw?

On the same day when the flagship store opened in Shanghai, the L Brands of the parent company, the Brands company, sharply cut the 2017 profit forecast. The statement said that the group's growth in 2017 was down, and the annual earnings per share were expected to be between 3.05 and 3.35 dollars, far lower than the forecast of the Wall Street analysts, and the stock price fell by 13% after that.

L Brands is in the period of business restructuring and high-level personnel turmoil. During the fourth quarter ended January 28th, group net profit decreased from US $636 million in the same period last year to US $631 million 700 thousand, and sales increased 2% to US $4 billion 489 million over the same period last year. The annual sales volume of the group is US $12 billion 574 million, an increase of 3% compared with the previous fiscal year, and its comparable sales increased by 2%, of which there was no increase in sales in 2016. It is worth noting that the sales decline in January this year was 10%, which had a negative impact on the overall performance of L Brands.

Last February, Sharen Turney left the CEO CEO Sharen Turney and worked in Vitoria for more than 16 years. It was the secret CEO of the company in the past 9 years. During her stay, the sales revenue of the company increased by 70% to US $7 billion 700 million. The industry has questioned whether Leslie Wexner, chairman of the 80 year old L Brands group board of directors, will be able to consolidate the market share of the brand in the fierce competition of underwear retailing.

Although in recent years, it has attracted a lot of attention from its bold design and annual carnival like underwear show, but analysts have pointed out that the exposure rate is not equal to the sales growth, and excessive marketing makes people forget the product itself.

Data show that consumers' sense of novelty is gradually losing.

In 2016, the "Wei Mei show" specially set up Chinese elements to highlight the importance of the Chinese market, but the effect was not good. The brand's understanding of Chinese culture and the design of the Chinese style were not only laughed at by consumers, but also criticized by foreign media, which was a "racist" behavior. Last year, the decline in related organic dialogue increased to 34%, and the number of related topics decreased by 12% compared with the same period last year. The CBS ratings in 2015 showed a 32% drop compared with the same period in 2014.

As the most important brand in L Brands, the challenge is very difficult. As a result, its higher pricing and luxury store decoration have brought great pressure to the brand. The group has also expressed concern that the operation mode of the company is difficult to maintain for a long time. After cutting off swimsuit and garment business, it also hopes to re-examine the brand positioning in 2017.

The New York post commentary pointed out that behind the stagnation of performance, more and more millennials are no longer accepting sexy selling by Victoria, and the brunt of the cut is the brand's immature swimsuit business. At present, the company has streamlined its business into three major sectors, namely, Victoria s Secret Lingerie, girls' underwear PINK and Victoria Victoria s Secret Beauty.

Affected by the sluggish retail market, analysts in the financial times pointed out that L Brands, the parent company of the parent company, will have a poor performance in the future, and there will be no signs of recovery until 2018.

Other data show that the decline in its performance also dragged down the decline of its largest supplier, the Jeanne group. It is reported that Virginia has been working with the L Brands of the parent company for 15 years, and orders account for 35% of the company's total annual sales. The decline in new quarterly orders in Virginia resulted in a sharp drop in profit from 89.3% to HK $23 million 244 thousand.

Foreign media pointed out that 20 years ago, according to the traditional business model of Wei Ming, there was no worry. But now, it has not set foot in the concerns of many millennials, such as gender identity, diversity, environmentalism, feminism and other popular topics. Today, there is no value added marketing method. Perhaps for the highly socialized millennial generation, it means that it is not cool enough and not sexy enough, and young consumers may completely freeze it.

Behind the billions of dollars worth of underwear business, the company has reason to start to tremble for the trend. Despite its reputation as the sexiest store in fashion retailing, the iconic sex appeal seems to be facing severe challenges as companies try to attract young consumers to shops. Now it seems that it is becoming increasingly difficult for the company to assume the lead in sex definition, and more consumers say that the company has not provided anything but lace little underwear.

What makes the company more upset is that NASDAQ: AMZN, a global retail outlet, has formally challenged it. According to the Wall Street journal, people familiar with the matter said that Amazon Co may begin selling its own own, affordable women's underwear in its US website in the coming weeks. It has started selling underwear in Europe for less than 10 dollars in price, and the trade mark used is AMZN Iris & Lilly. There is an analysis of Amazon's entry into the lingerie market or its impact on security.

suffer taylor swift The growth of business has been stagnant. In the past 6 months, the share price of L Brands has fallen by nearly 26%, and its market value is currently about 16 billion 600 million dollars.

For more information, please pay attention to the world clothing shoe and hat net information report.