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Vomi's Parent Company l Brands' Net Income Fell 49.5% Year-On-Year In the First Quarter


Wei Mi’s false enthusiasm was once again hit by financial reports. On May 24, V Brands' parent company L Brands released its first quarterly report for fiscal year 2018, and its net income fell 49.5% year-on-year. While performance continues to be sluggish, the popularity of Wei Mi Xiu and Wei Mi’s supermodel on the social platform continues unabated, and Wei Mi’s online and offline AliExpress Promo Codes product promotions are also extremely lively. The voice of the product itself is mostly lack of quality and comfort. good. In the eyes of the industry, Wei Mi's marketing is undoubtedly a success, but the topical marketing of high fever objectively covers the problem of insufficient products. Adjustment of product upgrades is the key to ease the performance downturn.
Performance continues to be sluggish
Compared with the same period of last year, the performance of the parent company of VMI continued to decline in the first quarter of fiscal year 2018. In the first quarter of fiscal year 2018 as of May 5, Viti's parent company's operating revenue fell 26% year-on-year to US$155 million, comparable store sales fell 2% year-on-year, and core brand Vemi’s stores’ comparable sales fell 5% year-on-year.
The fact that nearly one-fifth of net income fell in the first quarter was not the case that U.S.-based parent companies had lost their forebodies, and their performance has continued for two years. Beijing Business Daily reporter compared with the parent company's Shein Coupon Codes financial report data in the past two years found that the parent company's net income from the third quarter of fiscal 2016 began a relatively continuous decline. From the third quarter of FY2016 to the third quarter of FY2017, net income fell by 25%, 0.6%, 38%, 45%, and 29%, respectively. In the fourth quarter of FY2017, there was a slight recovery, but it fell into the first quarter of fiscal year 2018 again. The state of significant decline in net income.
As for the reasons for the continued decline in performance, Beijing Daily News reporter has issued a verification request to Viti's parent company. However, the relevant person in charge of Viti company stated that due to the time difference problem, it cannot temporarily reply.
It is reported that as of May 5, 2018, the brand of the parent company of the company has a total of 3,069 stores worldwide. At the end of April of last year, the number of stores was 3,080, and 11 stores were opened.
Into the Chinese product list
In spite of the persistently weak performance, Wei Mi's network continues to be hot. The Beijing Business Daily reporter found that since the “Wei Mixiu Falls” incident, Wei Mi’s topic has been focused on Wei Mi Xiu’s supermodel. The rare content about the product is also a product defect and discount promotion.
And under the excitement of online voice and brand promotion, it is frequently exposed product quality problems. Beijing Daily News reporter found in the flagship store of the U.S. T-mall that there were not many consumer evaluations such as “Unsuitable underwear size”, “underwear discoloration” and “hard fabric”. Previously, consumers also reported to Beijing Business Daily that the buckles of the front buckles purchased by Wei Mi’s underwear had a metal buckle fade when they were worn for the second time. In 2017, a large number of imported garments destroyed by the Shanghai Entry-Exit Inspection and Quarantine Bureau, a batch of underwear products sent to the Chinese market by Vumi was listed on the destruction list due to the detection of formaldehyde exceeding the standard.
Improve quality is the key
At the same time, Wei Mi’s discount promotions have never stopped. A reporter from Beijing Business Daily visited the Central District of Victoria. It was Rosewholesale Coupon Code discovered that PINK, a young girl brand owned by Vmin, which is located on the first floor of the store, had the largest discount and had the most consumers. Such as 3 138 yuan, 2 238 yuan, buy one get one free promotion activity is not small. At present, the Wei Mi Tianma flagship store also has more relevant promotional activities, and foreign channels also have many discount promotions.
The seemingly lively promotion is in fact a follow-up to Weimei's poor performance. Amie Preston, L Brands' chief investment relations officer, previously said that due to the loss of the brand underwear category, especially the Virgin brand's teenage brand PINK, the brand had to be taken. discount promotion.
For the current situation of Wei Mi, Zhou Ting, president of the Waikao Research Institute, said that Wei Mi’s brand marketing was very successful, but the product failed to keep up. Wei Mixiu’s over-marketing also caused a disconnect between the audience and the consumer group. . Underwear is in direct contact with the skin, and quality and safety are the most basic prerequisites, and it is also a top priority for consumers. The appearance of quality problems in Wei Mi underwear products will directly affect the consumer's trust in the brand and will also greatly reduce the brand image.
This issue will have a greater negative impact on the layout of the Chinese market. Chinese consumers will lack loyalty to the brand. If Wei Mi enters the Chinese market at an early stage, if it cannot establish brand trust, it will lose the relationship between the consumer and the brand. Tightness, this will be a huge loss for the brand.
Well-known international fashion industry investor Free Promo Codes Yang Yihao also holds a similar view. Yang Dayuan also pointed out that although Wei Mi’s influence in the Chinese market is still high, it is difficult to shake the position of excellent domestic brands in the minds of consumers. After the shrinking of the US home market, Weimi, whose performance has declined, is eager to find new growth points in China. However, in the layout of the Chinese market, it is necessary to adjust and upgrade products to understand the local consumer style and national conditions.
25 мая 2018 12:59


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