Giordano'S Net Profit Has Declined Sharply To Adjust Its Brand And Expand Its Sales Channels.

< p > recently, Giordano International (00709, HK) announced its 2013 performance, annual sales increased by 3%, net profit fell by 20%.

< /p >

P Giordano China's market continues to be weak, especially in the mainland market.

It is learnt that in order to activate the mainland business which has no improvement for a long time, the group will launch a cheap brand to attack the popular market.

< /p >

< p > although Giordano has actively repositioned "a href=" //www.sjfzxm.com/news/index_c.asp "brand" /a ", it has not achieved obvious results.

Insiders pointed out that if Giordano can not react promptly to customer needs in time, it will easily fall into the "whirlpool" of brand aging, and whether its multi brand strategy can bring improvement to its performance is still not clear.

< /p >

< p > < strong > sales in mainland China declined for two consecutive years < /strong > < /p >

< p > by the end of 2013, Giordano's sales volume was HK $5 billion 850 million, an annual growth of 3%, mainly due to the total sales volume of the Middle East acquisition project.

Among them, the same store sales reflecting business performance fell by 2%.

In the third quarter of this year, this figure has declined for 5 consecutive quarters.

< /p >

< p > in addition, Giordano's net profit last year was HK $663 million, down 20%. compared with the same period last year, the gross profit margin increased by 2 percentage point to 60.7%, and the stock turnover rate rose 8 days to 82 days.

< /p >

< p > Giordano O2O strategy is advancing.

In terms of e-commerce, Giordano's online sales increased by 20% to HK $174 million last year through its own website and the third party platform.

< /p >

< p > it is worth noting that sales of Giordano in the mainland are particularly bleak. Compared with sales in Hongkong and Taiwan, sales in mainland China dropped by 9% to HK $1 billion 727 million, while same store sales fell by 6%.. This is Giordano's sales decline in mainland China for two consecutive years, and its sales in 2012 dropped by 6%. < /p.

< p > reporter noted that Giordano continued to integrate its business in the mainland.

Last year, it closed 82 stores, which were mainly franchised stores.

At present, its number of franchisees in the mainland has dropped to 58 from the previous 66.

Last year, group inventory turnover lasted for 82 days, increasing by 8 days per year, but the rate of new products improved from 49% to 61%. < /p >.

Shao Ligang, general manager of P nine, told reporters that net profit fell by 20% last year, which means that the market is becoming more and more difficult.

In addition, Shao Ligang pointed out that closing stores will also affect the decline of performance. "Giordano's performance in the mainland market is going down and it is very difficult to reverse the pfer."

< /p >

< p > Giordano said frankly, the mainland market environment is still full of challenges. Consumers' demand for "a target=" _blank "href=" //www.sjfzxm.com/ "clothing" /a "keeps only a single digit growth.

Other competitors continue to take advantage of large discounts and electronic channels to seize the market share of physical stores, all of which have brought pressure on enterprises.

< /p >

< p > < strong > adjust brand and expand sales channels < /strong > < /p >

< p > because of weak business, Giordano's stock price has dropped from last year's high position.

In the view of the industry, the overall situation of the apparel industry is not optimistic at present. In addition, the casual clothing industry of Giordano has the characteristics of rapid change in customer demand. If it does not respond promptly to customer needs, it will easily fall into the "whirlpool" of brand aging.

< /p >

< p > Shao Ligang told reporters that the electricity supplier's strong invasion of the clothing field also seized Giordano's market share. While many brands were pushing their children's brands, Giordano was still developing its single brand.

< /p >

< p > up to now, Giordano's brand recovery plan is still advancing.

The company said it plans to open 200~250 stores in the mainland this year, including the launch of a cheap brand BeauMonde (BM). The price of the product is only three or four of Giordano brand, that is, the average price is 29~99 yuan, and it is expected that 20~30 stores can be opened before May 1.

< /p >

< p > Giordano chairman and chief executive officer Liu Guoquan Liu Guoquan pointed out that in the past Giordano quickly expanded the mainland market and chose some inappropriate sales channels, including Carrefour, WAL-MART and other supermarkets. In the future, Giordano would "go up" to a better location, and supermarkets would mainly sell BM products.

< /p >

< p > in addition, in the second half of, Giordano will take the lead in launching leisure Women's brand "EULA" in Wuhan and Shenzhen, focusing on high-end department stores, priced between "GiordanoWomen" and "Giordanoladies", which is 40% lower than the latter.

< /p >

< p > "positioning down, or value the low price part of the channel.

It is late to make many brands, but it does not mean that they will not succeed. It depends on whether the brand positioning and the channels of choice match the whole operation management.

Shao Ligang pointed out that the reason why many people want to go down now is to see opportunities in the process of urbanization.

< /p >

< p > however, in view of the new brand of "a href=" //www.sjfzxm.com/news/index_c.asp "Giordano" /a "entering the high-end department store," a clothing industry personage told reporters that the shopping mall attaches great importance to brand lineage when attracting investment.

Based on the current market awareness, as a subsidiary brand of Giordano, it will be more difficult to enter the high-end shopping mall.

< /p >

In addition to brand strategy, Giordano is also actively expanding the emerging market P.

Liu Guoquan said that the group will continue to expand small markets in the future, such as Vietnam, Kampuchea and Burma, as well as developing markets in the Middle East, Africa, Eastern Europe and central Europe.

< /p >

< p > despite the fact that the company is committed to brand image, Shao Ligang pointed out that Giordano's status in the short term is indeed difficult to raise, but it is not possible to withdraw from the market.

"Esprit, which is similar to Si Jie universal, occupies a certain market share, but the operating condition is always warm."

< /p >