Esprit5 Closing Stores At The End Of The Month, Fast Fashion Clothing Brands Welcome The Ebb Tide.

Some fast fashion clothing brands have been put to a halt.

Esprit announced that it will close shop in May 31st. In fact, since February, Esprit's China stores and its official website have been cleared through 90 percent off sales. In April, Tmall flagship store also joined the discount camp, and Esprit was in the Chinese market to exit the countdown.

In the case of the spread of overseas epidemic, some clothing brand stores have announced a temporary closure. 3 in late mid month, clothing brands Levi 's, UNIQLO, H&M and Zara announced a temporary closure in stores in Europe and America.

The once fast fashion has reached the bottleneck stage. Esprit is just one of the epitome. Before the outbreak, Topshop, Forever 21, Newlook and other brands had already withdrawn from the Chinese market. Under the impact of the epidemic, more fashion brands are cold. The US apparel giant GAP has lost 60% of its share price since 2020 and its market value has evaporated 4 billion dollars.

CEO, the Guangzhou city's Clothing Co., Ltd., according to Mei long, told reporters on twenty-first Century economic report that the spring money could not be sold, the summer products could not be produced, and the garment factories and the upstream and downstream businesses were numerous. Under the impact of the epidemic, the industry's self rescue is an inevitable way out. Faced with the difficult situation, all garment enterprises are actively seeking countermeasures, such as expanding the electricity supplier channel, carrying live goods and increasing the proportion of domestic sales.

Fast fashion fade out

Fengshui turns around, and imported goods are facing unprecedented impact.

Fast fashion industry is strictly an imported product, and its sales in China do have some weakness, but this weakness is caused by many factors, including changes in the economic environment and the needs of young people.

China's marketing market has an independent ecosystem, which is different from any other market. The young people have been advocating consumer demotion, but cheap and fast fashion is becoming more and more difficult to sell. Foreign brands lack the ability to make decisions quickly in the face of such huge marketing fees as net red live broadcast and WeChat public number promotion. All these have become problems that restrict the development of fast fashion brands.

More than 20 years ago, Esprit, who was so aggressive and aggressive in the mainland market, would not have thought that today, he will be reduced to the dilemma of selling and selling crazily.

Analysts believe that Esprit's position in the Chinese market in the past ten years has been vague and uncertain, resulting in its gradual decline under the impact of high-ranking retail brands such as Zara and UNIQLO. Both product positioning and channel structure and operation management have shown a clear runaway. The withdrawal is an inevitable outcome whether it is affected by the epidemic or not.

However, the Esprit shop is not going to bid farewell to the Chinese market. According to previously disclosed information, it will resume its integration with mosang holdings.

In December 1, 2019, Esprit's parent company Global Holdings Limited announced that a joint venture agreement between Affiliated Companies and Wansheng Group Holdings Limited, an indirect wholly owned company, will take effect from December 2, 2019.

According to the terms of the joint venture agreement, the moussing group and Wancheng resources have agreed to set up a joint venture in mainland China for the purpose of engaging in other Esprit businesses that may agree with clothing, clothing accessories and joint venture parties. The registered capital of the joint venture shall be 100 million yuan, and the Mu group will invest 60 million yuan and hold 60% interest. Wancheng resources invested 40 million yuan, holding 40% rights and interests.

The announcement clearly pointed out that the transition from China's business to joint venture is expected to be completed in June 30, 2020. As part of the transition, Si Jie will close some shops or transfer the assets of the remaining Chinese shops to the joint venture company. The Board believes that this transaction creates a sound foundation for Esprit brand to improve brand relevance and speed up growth.

Statistics show that the mousse group was founded in 2007 and is the leading Chinese fashion menswear company. In addition to the core brand GXG, the group also operates five brands such as GXG jeans, gxg.kids, Yatlas and 2XU.

Wang Guoping, a member of the joint senior consultant group, believes that this is a link for mu Shang to enrich his product line. It is easier to get a channel and market recognition than a brand new brand and acquire a well-known brand in the market, so that the cost can be reduced to a relatively low level. As for the Esprit after the acquisition, it should have nothing to do with the name except the previous ones.

It is inevitable for fast fashion foreign brands to enter the Chinese market. For example, Zara never asks the spokesperson to bow to traffic students, H&M layout three or four line city stores and so on.

But the Chinese market is changing rapidly. The carrying capacity of the flow star may also be burned with the collapse of the human settlement. The fast fashion leading to fashion has begun to sink to the three or four tier city, and it needs to adapt to a new set of business logic.

Self rescue in garment industry

According to the National Bureau of statistics, the total retail sales of clothing and footwear category decreased by 30.9% in the 1-2 months of 2020.

Customs data show that in 1-2 months, total exports decreased by 15.9% compared with the same period last year, and exports of textiles, clothing, footwear and other items decreased by more than 18%.

The weakening of consumption power has directly transmitted to the entire apparel industry chain, and landed on the chain of bosses and workers.

A foreign trade garment industry in Guangzhou admitted to the twenty-first Century economic report reporter that the foreign trade circle was also fighting against the epidemic. Everyone said that the domestic market had been in the first half, while the foreign trade people had to play the whole game. A large amount of spring money and part of the summer money have arrived at warehouses and stores. If long-term sales do not go out, cash flow will be tight. From terminal retail to industrial chain, every link is under pressure.

Ying Mei Long told reporters that the pressure on the entire supply chain will be a blow. We began to find new sales channels, directly in the workshop to build a live room, to save themselves, through more than 6 hours a day of Taobao live broadcast, gradually emptying millions of pieces of clothing factory, tens of millions of stock.

At the same time, sports brand has also launched a self rescue trend.

Anta, Lining, XTEP, 31st degree, and Nike, Adidas, lululemon, UA and other brands mainly through the release of fitness action teaching copy video, live broadcast training courses, online sports challenges and other ways to attract consumers' attention, and attach fitness equipment to buy online links.

Policy, since the outbreak of the outbreak, central and local governments have introduced a number of initiatives to help SMEs overcome the epidemic crisis, and try their best to support enterprises through difficult times. For example, Zhejiang and Jiangsu have opened up a green channel for financing of small and micro enterprises affected by the epidemic, reducing the cost of financing and reducing the burden of enterprises' taxes and fees. The Ministry of finance also called for a reduction of financing guarantee fees for small and micro enterprises, and promoting small and micro enterprises to resume production.

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