Calvin Klein Flower 800 Million Restart 205W39NYC Business To Close New York Flagship Store

In January 11, 2019, after Raf Simons resigned as chief creative officer of Calvin Klein, Calvin Klein plans to restart 205W39NYC business with new name, design method and creative direction.

It also plans to cut 100 employees and close its historic New York flagship store, which will cost about $120 million (about 814 million 500 thousand yuan).

Judging from this news, there is nothing special about it. It is only the creative director's resignation. Calvin Klein restarts 205W39NYC business, and plans to spend 800 million yuan to restructure its brand business.

But these three can also be said to be the pain points of the industry: people, lines and money.

Is man the magic weapon for solving problems?

Personnel changes not only Calvin Klein, "shoes God" Mimura Hitoshi joined New Balance, from Zara job hopping to Esprit executives also left office, fashion trend Zara Kim Jones left LV to join the embrace of Dior Homme, frequent personnel changes also fully demonstrated the uneasiness of the fashion industry.

Raf Simons, who left Dior to join Calvin Klein, can dig this master. Calvin Klein not only works hard, but also is brave in such a global environment.

This master's high energy you and I don't need to be too jealous, the documentary "Dior and I" can see.

In "Dior and I", from the Raf Simons to the first day of the 30 fashion house on Dior Montaigne Road, from 2012 to autumn, the advanced order series was released as the recording cycle. From the design inspiration, production to release, the whole work process was displayed, and the veil behind the fashion show was set aside.

In this process, Raf Simons is unreservedly displayed under the Fr e d ric Tcheng lens, in addition to the understanding of the design structure, the exquisite production skills of Dior fashion house.

Therefore, the audacity of Calvin Klein is very strong. From Raf Simons, we can see that Calvin Klein gives him great voice through the series pformation of Calvin Klein series brand. Not only in product design, but also in brand trademark, product line, store outlet, marketing means and so on, but the outcome is not very accurate.

Calvin Klein is different from what we have to develop brand lines

Now, 8 months ahead of time to terminate the cooperation, I think the idea of Raf Simons is only one side of the company's backside, and more importantly, the Calvin Klein high-end brand line has not had any results. Although there have been many reports about the effectiveness of Raf Simons after its taking office, the total investment of the brand to CALVIN KLEIN 205W39NYC series is as high as 6000 to 70 million US dollars.

It's not what the company wants.

If sales really improve, the ghost will break up.

If this is too much to say, it is not too much experience to put it another way.

For example, why did Calvin Klein not make some basic rules before the Raf Simons creative officer took office?

This question is worth pondering.

This also leaks out the current Calvin Klein's attention to the high-end brand line, but no way to start.

You know, Calvin Klein is popular fashion.

Such as our local brands, Anta, Ruyi group, Anta, seven wolves, Vigna S and so on, are also very bold.

High value-added acquisitions, one after another.

All are by means of curve overtaking, acquiring mature positioning high-end brands, and readjusting their operation.

Calvin Klein, like our local brands, does not know much about the difference between its own price range and its operation, but it is very bold.

To be different, Calvin Klein is too confident and cautious.

Calvin Klein wants to sell $12 billion, but it has to turn off its flagship store.

Calvin Klein said: "our industry is witnessing a historic change in consumer behavior, which will bring tremendous growth opportunities, because we hope to grow the brand to global retail sales of US $12 billion over the next few years.

The reality is that it is expected to generate about $120 million (814 million 500 thousand yuan) pre tax costs in the next 12 months with the restructuring of Calvin Klein, which mainly includes severance payment, stock price reduction and quota, asset impairment and termination of the lease contract, including closing the flagship store in New York.

The cash outflow related to these pre tax costs is expected to be about $60 million over the next 12 months.

The flagship was first opened in 1995 and redecorated in June 2017. It pformed the boutique into a bright yellow wall for the development of the 205W39NYC series.

New York, the 18000 square foot three storey store, signed a new long-term lease, paying 852 dollars per square foot, that is, 15 million 336 thousand dollars in rent.

It seems that the high rent is the same everywhere. If we have to say that the electricity supplier has grabbed the business of the clothing industry, it would be more appropriate for the landlord to come.

Calvin Klein also saw online retailing. It also said it would assess the choice of future retail locations and launch new consumer experiences online and offline.

In this respect, Bosideng is more experienced.

Bosideng's number of stores decreased by 55 a year, showing a closed shop status, but this strategy is the dominant channel replacement idea, and is driven by shop promotion.

For example, the number of stores in the A market is 3, and the annual sales are 4 million. If the 3 stores in the original A market are estimated to be in a loss, then Bosideng will restart a new channel store in the A market, and turn off the original 3 loss stores. The store will be greatly reduced by the strict inspection of the location and area, and the sales of new stores will be even higher or higher than that of the original three stores. This will greatly enhance the single point effect.

Feel Calvin Klein is learning us!

Calvin Klein's personnel appointment has not stopped. Recently, Calvin Klein has appointed Steven Waldberg, the former senior director of the global communication department of Bao Ge, as the vice president of consumer participation. This is the new position of Calvin Klein.

Responsible for digital priority marketing, including team related mobile, social, content, data and e-commerce directions.

Meanwhile, the Calvin Klein parent company also released the fourth quarter and full year outlook for 2018, and indicated that the fourth quarter and the full year 2018 income were expected to be at least $2 billion 400 million and $9 billion 570 million respectively, exceeding the plan.

The current market environment requires enterprises to fully understand the market. At present, the road of polarized development is striding forward.

Whether from the global market or the local brand, the sinking and rising trend is constantly expanding, and the public fashion continues to make efforts to buy and suppress or rebuild new product lines.

How many brands are there under the online and offline integration?

But no matter how to develop, in the current environment, no matter how bold or cautious, the pragmatic development concept may make enterprises more secure and real. After all, "living" is indeed the important thinking of brand enterprises nowadays.