Adidas vice director will take over the job of managing China regional Esprit. After more than a year's vacancy, Esprit China CEO, this key position finally got assigned. Esprit Holdings announced on November 5th that Adidas vice president, general manager of north China area, Ms. Li, was nominated to be Adidas JS Wings future Esprit China CEO, and she will take up the official post next February.
By the end of 2010, the original Esprit China general manager got job-hopping to a fashion brand of the United States Tommy Hilfiger, being the first China regional CEO in Tommy Hilfiger. He was one of the members of China regional foundation and management team, being the general manager of Esprit China in the past eight years.
At that time, Esprit's performance had already displayed decadent trend of slow growth. The latest Earning Season in September showed that at the end of this June, Esprit's net margin fell 98% year on year, from last year's HK$4.23 billion to HK$79million, and also this brand's earnings got down side for 3 consecutive years. Esprit Holdings proclaimed in their yearly report that the previous year's achievement is undesirable due to the fact that the poor performance of wholesale business and European business was a burden. At the moment, European market makes up 79% Esprit sales performance.
With this bad yearly report, Espit Holdings as well proclaimed rebranding plan, which will achieve HK$18 billion in the following 4 years. The company announced that they will shut down 80 stores successively, including 65 stores in Europe and 15 stores in Asia. They will enlarge investment in renovation and developing brand new sales network among over 200 stores in China and other regions. Hoping that in the future 5 years, the continent market's sales volume will be doubles, they desired to reach up to HK$6 billion. Operating sales points also will be increased to around 1900, and considering to expand e-business platform in China in the second half of the new fiscal year.
After the new chief executive officer's inauguration, this China strategy will be specifically formulated. On November 16th, relevant persons of Esprit Holdings investors told reporters that Ms. Li has rich management experience He will be mainly in charge of the implementation of transformation plan in China regional parts.
Public data shows Ms. Li has already been in Adidas for 11 years. She has been held the CEO post of northern China from the year of 2005 and made markedly increase in regional yearly sales and profits under the duty of whole operation, distribution management and business expansion, therefore, Adidas north part wined the title of "the best growth area in China from 2007 to 2008".
After 2008 Olympic Games, Adidas China region had been badly suffered from inventory until 2010 Adidas got positive growth for the first time. Some investors worried whether the style that Adidas got sales growth by inventory would influence Esprit. As for that, the officials said the strategy of Esprit China region has already been formulated, and Ms. Li would be just responsible for carrying out in the frame range, yet there is no such worries.
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Dec 8, 2011
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