“10 items at a discount! Is there anyone who wants to order with me?” a woman shouted in the store. After a while, her hands were full of clothes. The lady following behind asked her from time to time if she could join the group order. “I’ve finished the order. A short-sleeved piece costs 19.9 yuan. Please forward it to me via WeChat.” A woman who successfully placed the order said that these 10 different styles of clothes cost a little over 200 yuan in total.
This looks like an online shopping order, but it is actually a scene of offline store departure discounts. It happened in Inside the Esprit store in Sun Moonlight Plaza, Huangpu District, Shanghai.
What happened to Esprit, a brand that Chinese people are very familiar with?
On April 15, the Esprit store in Shanghai ASE Plaza.
The store is on clearance and membership will be terminated at the end of May
Esprit has recently seen departure discounts in some stores Case. On the 15th, the reporter went to the Esprit store in Sun Moon Plaza, Huangpu District, Shanghai to learn about the situation.
At the entrance of the store, you can see a very eye-catching promotional board with “10% off for 10 items”. In the store, most of the shelves have been cleared, leaving only some clothes for customers to choose from. Although the store clerk carries clothes and restocks shelves from the workroom from time to time. But when asked if there would be new ones, the clerk shook his head.
Many customers in the store told reporters: After learning that there was a discount here, they all came here specifically to “pick up bargains.”
A clerk who was checking out told reporters that the store will close on April 19, and all stores in Shanghai will also be closed by the end of May. “We pay wages normally until May,” the employee said. But when asked whether he would still be on the job after May, the employee still just shook his head in response.
Esprit online stores are also heavily discounting. Taobao Esprit Tmall flagship store shows that starting from April 3, all three items are discounted at 20% off. A piece of clothing with an original price of 299 yuan, after participating in the event discount, the reference price is 60 yuan. The original price of the clothes is 699 yuan. After participating in the discount, the reference price is only 140 yuan. As of press time, there were only 6 pieces of clothing left for sale in the Esprit Tmall flagship store.
In addition, the public account of Bailian Central Shopping Plaza also recently announced that due to business needs, Esprit will close its operations from April 16, 2020. After the store closes, customers Unused ESPRIT FRIENDS membership points can be used on the official website before May 31, 2020.
The reporter learned that currently various stores in Shanghai have different discount methods. Some stores offer a 10% discount for 10 items, and some stores offer a 20% discount for the entire store.
The information in Esprit’s official mall shows that the ESPRIT FRIENDS membership program will be terminated on May 31 in order to “focus on future goals.”
Behind the discounts and membership termination, some media said that Esprit was counting down to withdrawing from the Chinese mainland market. The reporter then called Esprit, but the call was never connected. Subsequently, the reporter called the Esprit member service hotline, and the staff member who answered the phone told the reporter that Esprit would withdraw from the Chinese mainland market at the end of May this year.
Then the reporter went to the office address of Esprit’s main operating entity: Sihuan Trading (Shanghai) Co., Ltd. in Changning District. It was already off-duty time, and the staff at the Esprit office were relatively busy. Few, but there are still employees working on the job.
At the scene, a person who claimed to be an employee of the company’s product department said that it was true that Esprit would withdraw from the Chinese mainland market at the end of May, “but our wages will still be paid until May.” . When asked why he quit, the employee just said: “It should be the company’s business adjustment.”
Esprit’s main operating office is located in Changning District Address
What are the reasons for transferring and closing the store?
In fact, Esprit has previously mentioned the reasons for closing stores.
Information shows that Esprit was founded in 1968 in California by Susie and Doug Tompkins. It was acquired by Hong Kong businessman Xing Liyuan in 2002. The parent company Esprit Global (00330, HK) Listed on the Hong Kong Stock Exchange in 1993.
At the end of 2019, Esprit Global disclosed that its subsidiary entered into a joint venture agreement with Mulsanne Group (01817, HK). The two parties established a joint venture company in mainland China for the purpose of It is engaged in the operation of clothing, clothing accessories and other Esprit businesses that may be agreed upon by the joint venture parties.
For the purpose of establishing the joint venture, the announcement stated that the joint venture parties have signed a joint venture agreement to jointly manage the group’s business in mainland China. The transition of Esprit Global’s Mainland China business to the joint venture business model is expected to be completed on June 30, 2020. As part of the transition, Esprit Global will close certain stores or transfer the assets of the remaining mainland China stores to the joint venture company.
But consumers should also pay attention to another point.
The announcement also stated that in order to promote the business development of the joint venture, Esprit International’s subsidiaries must press Esprit International to enter into a trademark agreement according to the agreement.and transfer agreement to transfer certain trademarks to the joint venture company.
As a partner, Mulsanne Group is a company focusing on China’s fashionable men’s wear market, covering the sportswear market and other fashion fields. Currently, its brands include GXG series, Yatlas and 2XU. It landed on the Hong Kong stock market in May 2019.
As for Esprit Global’s actions, it can be seen from the regional revenue situation.
Esprit Global’s financial report for the second half of 2019 shows that its core product group is women’s clothing, and Germany is its largest market. The revenue brought by the Asian market only accounts for 7.2% of Esprit’s global revenue, while the German market accounts for more than 52%, and the rest of Europe accounts for about 41%.
At present, Esprit Global’s main distribution channels are still retail and wholesale, which are greatly affected by offline stores. The revenue from retail accounts for about 38% of Esprit Global’s total revenue. , wholesale accounts for about 34% of the revenue, and electronic stores account for nearly 28%.
The outbreak of the new coronavirus is having a negative impact on the global economy, and Esprit is also suffering from it. The company stated in a recent announcement: Due to the comprehensive restrictions on public life in European countries, all the group’s stores in Europe, as well as nearly all the stores at the points of sale controlled by the group’s franchise and wholesale partners, have been closed, which has had a negative impact on the group’s continued sales. significant negative impact.
In order to protect the solvency and liquidity of the group (especially its European subsidiaries), Esprit Global has applied to initiate property protection proceedings against its six subsidiaries. The court has Responded to the relevant subsidiary’s application for protection proceedings and has implemented interim self-administration.
The reporter noticed that Esprit’s share price has been showing an overall downward trend in recent years. As of the close of trading on April 15, it was only HK$0.71 per share. </p
