Qiu Shuzhen is the owner of 28 stores closed by the ancestor of Chinas fashion brand industry

 Qiu Shuzhen is the owner of 28 stores closed by the ancestor of Chinas fashion brand industry

However, Shen Jiaweis self-made business story is not attractive enough. The world pays more attention to his marriage to Qiu Shuzhen in 1999.

Qiu Shuzhens star effect after marriage has greatly helped the I.T. brand, and she does not want to be just a vase, but also acts as the image spokesperson in person, and even flies to Europe, Japan and South Korea to pick up goods for the company all the year round. Because of her extraordinary taste, she tried on the approved brands, which are mostly in line with the taste of Hong Kong people. Once introduced, they sold well and became the king of bringing goods.

Qiu Shuzhen and Shen Jiawei (screenshot of tuyuan video)

1. Since entering the mainland market in 2002, t group was once regarded as the Enlightenment of the mainland trend consciousness. Relying on the authorization of many fashion brands and a number of private brands, I.T group expanded rapidly and was successfully listed on the Hong Kong Stock Exchange in March 2005. Shen Jiawei became a fashion tycoon. At the peak of the times, he managed more than 300 fashion brands and owned more than 20 private brands such as B + AB, Izue, 5cm, abattingape.

Qiu Shuzhen remains a shareholder of I.T group

However, todays I.T groups share price has fallen to about HK $1.2, the total market value of the company is less than HK $1.5 billion, and Qiu Shuzhens family is also seriously reduced.

Performance continued to decline, with a net loss of 700 million last year

In 2017, Wu Yifan, the signing star of I.T group, worried about the aging of the brand, became the global spokesperson, hoping to keep the brand younger and attract post-90s consumers.

In 2018, I.T groups revenue reached HK $8.832 billion, which is still growing, but the growth of net profit slowed down significantly, only HK $440 million; in the middle of 2019, for the first time, net loss of HK $71.2 million appeared, and the range of annual loss further expanded.

According to the 2019 / 2020 financial report released by I.T group, the groups revenue for the financial year was HK $7.719 billion, down 12.6% year on year. Among them, the total retail revenue in Hong Kong and Macao was 2.58 billion Hong Kong dollars, down 23.3% year on year; the total retail revenue in mainland China was 3.7 billion Hong Kong dollars, down 9.4% year on year; the total retail revenue in Japan and the United States was 1.066 billion Hong Kong dollars, up 1.1% year on year. The companys annual gross profit was HK $4.734 billion, down 16.1% year on year, while its net profit was HK $746 million.

1. T Groups worst performance in recent years

For this poor annual report card, I.T group said in the financial report that the operating environment of the group is extremely challenging, and its business in multiple operating locations has been severely damaged. Novel coronavirus pneumonia was closed in 28 stores last year. The outbreak of the new crown pneumonia this year has also led to a serious blow to the physical store business.

Up to now, I.T group still has more than 800 stores worldwide. In recent years, the main revenue source of I.T group has been gradually transferred from Hong Kong and Macao to the mainland, and 5 stores have been added in the mainland this fiscal year. However, I.T brand sales mode is still more traditional, relying too much on offline physical stores, and the sudden epidemic makes store sales fall into a weak state.

Red Star News reporter recently visited Chengdu I.T. store and found that as a collection retailer of fashion brands, its store scale is quite large, and there are many brands to sell, but there are few customers shopping in it, and the intuitive feeling is that its influence has been greatly reduced.

The reporter noted that I.T group has two brand lines, capital I.T and small I.T. the former mainly sells luxury brand, light luxury brand and high luxury fashion brand products, which are expensive; the latter mainly sells middle end fashion brand, tooling, leisure and other products, which are relatively cheaper.

An I.T store in Chengdu

Red Star News reporter also found that now major shopping malls have also opened up a buyers collection shop, which can be said that all kinds of emerging minority brands in the world can be easily bought, predecessor I.T group once maintained the collection advantage is no longer obvious. In the fast iteration, consumers have more choices, and I.T group is facing a huge impact.

Chaopai is no longer small, and Guochao is rising rapidly

With the rapid rise of chaopai culture in China in recent years, and the trend of spreading from minority to mass, there is still much to be done in this field. According to the 2019 China trend consumption development white paper, in recent years, the transaction scale of global trend market has maintained a double-digit high-speed growth, reaching 200 billion US dollars in 2017. This means that there is already a trillion level market behind chaopai.

According to the analysis of the global fashion industry report 2019 released by McKinsey, in 2019, Chinese young people spent 35 billion to 38 billion dollars on the fashion brand, which has surpassed the United States as the worlds largest fashion market.

For todays young generation, they are no longer infatuated with expensive brands, but the trendy brand, which represents uniqueness and personality, is more popular. With the development of chaopai, a large number of new brands have emerged in this field, and some popular stars have created their own chaopai, which have brought impact on the chaopai of I.T group. In addition, old domestic brands such as Li Ning (02331. HK) and Anta have been transformed one after another, forming a huge national tide, which has also successfully attracted the attention of young consumers, further diluting the market share of I.T group.

Taking Li Ning, the representative of Guochao, as an example, with the help of the strategy of chaopai, the brand has been reshaped, and the brand has been rejuvenated rapidly, which has overturned the old and boring impression of the domestic brand and fascinated many post-90s and post-95s. Some cross-border fashion top goods launched by Li Ning are often popular, and even attract a large number of young people to make an appointment in advance.

After enjoying the dividend of Guochao transformation, Li Nings revenue in 2019 reached 13.87 billion yuan, an increase of 32%; net profit reached 1.499 billion yuan, a year-on-year increase of 109.6%. Novel coronavirus pneumonia has been the biggest share of Linings stock price since June 4th, and it has hit a new high in the middle of June 4th.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u6056789,container:ssp_ 6056789, async:true });}) (); source: Red Star News Editor in charge: Luo Chongwei_ NB12082