Big losses, layoffs, and selling rumors, New Look, a fast-moving fashion brand that once had a great reputation in the UK, is now in trouble. The slow response of the market, the timing of the timing is not appropriate, and other mistakes are reflected in New Look, so now it must bear all the consequences.
New Look is in trouble
The continued sluggish performance is a problem that New Look has to face. According to New Look's 2018 fiscal year data, current Dacoz revenue fell 7.3% year-on-year to 1.348 billion pounds, and basic operating profit directly changed from 97.6 million pounds to a loss of 74.3 million pounds. To add insult to injury, the company’s debt increased by 120 million pounds. In the upcoming fiscal year 2017, New Look's pre-tax profit loss was 16.6 million pounds, down 147.6% year-on-year.
Perhaps because of “money tightness”, New Look has begun to re-examine the Chinese market, which has been highly Yoins Coupon Code hoped for. The goal of Zeng Haoyan’s opening of 500 physical stores in China is gradually drifting away. The group publicly stated that in the future, the scale of business should be streamlined and the brand's own profitability should be improved as soon as possible.
Earlier in March, New Look also revealed plans to close 60 stores and lay off nearly 1,000 people. When I saw the news of the layoffs, the original store manager of a New Look store in the UK had a mixed feeling. “It’s fortunate and sad,” she told the New Financial Observer.
“Before I felt that New Look’s clothes style was more and more trendy.” So, at the age of 19, Corrine had worked in the New Look store. After graduation, he went directly to the job, from full-time to full-time, from the store staff to the store manager. It took 4 years. In the following four years, she was transferred to a store in three different districts, and until the beginning of this year, she gave up. It’s not common to work in a fast fashion brand for so many years, so it’s a bit sad to leave for Corrine. "But there is no way, it is getting worse and worse, and I have no way to compare it. I have to consider it for myself."
Indeed, New Look, born in the 1970s, captured the hearts of generations of British girls for a long time, just because "it has a precise grasp of fashion and fashion," Corrine said. At that time, many girls were able to Working in New Look is regarded as your own welfare.
However, when the internationally renowned fast fashion brand entered the UK, New Look's advantage was not so obvious, and its market share was eroded little by little.
Between "fast" and "slow"
In order to find new growth points, in order to pave the way for IPO, New Look had to scale up to make a big market value. Thus, in 2013, New Look decided to aggressively attack the Chinese market and expand its menswear business.
In 2014, New Look officially entered China and made a high-profile plan to “open 500 stores in China in three years”.
At that time, New Look officially publicly stated that New Look is a true fast fashion brand, and to pursue speed, “especially at the beginning of the market.” Indeed, such a brand that is unfamiliar to Chinese consumers, It is in such a large market that the store does not reach a certain amount, and the influence of the brand is difficult to penetrate. To some extent, New Look wants to expand at the fastest speed when entering China.
But the crazy opening of the store can only be a basis. If you want consumers to buy the important thing, the product itself and the marketing propaganda should also keep up. "But unfortunately, New Look is very slow in these two aspects." In the past 20 years, Li Weicheng, who is currently the director of a fast fashion brand marketing department in China, analyzed the new financial observers. “You rarely see what big advertising or marketing activities New Look has, even the billboards of large commercial exterior walls, not to mention interacting with consumers.”
At the same time, New Look is not flustered in the new speed and popularity of the product. "Or it has been following its original rhythm, but in the case that other brands have already caught up, it will be slower." Li Yucheng said. What's more, when New Look entered China, the three fast fashion brands have been entrenched in China for nearly 10 years. New Look must impress consumers with more active marketing and better product strength to break through.
As a result, the slowness of follow-up did not support the radicalization of its store opening target. In FY18, New Look’s number of stores in China was fixed at 149.
Anterior geometry
On the one hand, reducing the front line and saving costs; on the other hand, the rumors of "selling the body" are frequently heard; but whether these can bring a bright future to New Look, no one dares to say anything. According to Tang Xiaotang, the founder of No Agency, a research and investment institution in the luxury goods and apparel retail industry, whether a company is doing well or not is related to its own business, market timing and macro factors. According to him, 2006 is the first year for international brands to enter China's massive expansion. Because of the Olympic Shein Coupon Codes construction, which stimulates economic and consumer outbreaks, the overall impact of the financial crisis on China is small. Therefore, after 2008, many brands will The focus of international expansion has shifted from Europe and the United States to China. After 2011, luxury goods have a retreat, but mass clothing has benefited from it, occupying some properties that were originally used by the owners to serve core luxury goods. "2015-2016 is the real crisis, the crisis from the Chinese economy, but then the global economy and real estate boost, recovered in 2016-2017. 2018 is the real crisis, and there is a bankruptcy crisis. He told the new financial observer.
From this perspective, the timing of New Look's entry into China is not appropriate, and the local strategy has not been adjusted in time, so it has fallen into the predicament. Tang Xiaotang believes that New Look needs to withdraw from the Chinese market in the future. “It involves debt problems, and it is not how it wants to go. If the UK market deteriorates further, it will go bankrupt and reorganize, and eventually narrow down the scale of operations.” He said .
In Li Weicheng's view, regardless of whether the future will be "selled" and who will take over, the brand's own problems are there. If there is no ability and visionary to solve the problem, then the brand will never show a new look. It may only get worse.
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