Double Eleven Guess Business Expansion

Recently, GUESS released its second quarter earnings. As of July 30th, net profit in the quarter was about $32 million 300 thousand, compared with about 18 million 300 thousand US dollars in the same period last year, or up to 77%.

Among them, although the overall performance decline, but the electricity supplier performance has increased, Q2 electricity supplier performance accounted for 8.4% of the total sales, compared to 7.8% last year.

In this regard, CEO Victor Herrero said in the company earnings conference, GUESS will focus on developing overseas.

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Especially for the upcoming "double 11" Shopping Festival in the Chinese market.

It commends "Tmall is one of the best platform for cooperation. In my view, Tmall in the Chinese market is equivalent to Amazon in the US market."

In this financial report of GUESS, it shows that the income of the traditional brand business and the store channel is skewed.

On the one hand, GUESS's US business performance is 4.9% higher than last year's US $18 million 200 thousand, reaching US $19 million 100 thousand; on the other hand, store sales of US $207 million 500 thousand, down 3.1% from last year's US $201 million 400 thousand.

Meanwhile, in the first half of this year, the total retail sales of GUESS amounted to 309 million 140 thousand US dollars, down 4.6% from 401 million 30 thousand US dollars in the same period last year.

Obviously, the brand is also aware of this trend. Victor Herrero mentioned that GUESS will focus on the development of overseas (except the US market) electricity supplier business. "Our electricity business in Europe is developing very fast."

In addition to the European market, it also expressed great expectations for the Chinese market. In the conference call, it especially mentioned the concern of Tmall double 11 global shopping carnival.

Foreign media reports are as follows:

Herrero is particularly excited about the upcoming Singles "Day sales holiday holiday Day 11.", "

"We are very pleased with our cooperation with Tmall and JD," "and", "the first and the second."

GUESS CEO Victor Herrero expressed his expectation for Tmall's double 11 in his speech.

Obviously, Herrero's admiration is worth studying.

When GUESS decided to enter the Chinese electricity supplier market, it also chose Tmall and Jingdong's two major e-commerce platforms.

However, after initial attempts, it was slightly tilted.

Looking back at the last 8 months, GUESS announced that its children's clothing will be released at Tmall flagship store in its official WeChat, which is the first time it has sold children's clothing in China's e-commerce channel.

Although GUESS also synchronized the new children's wear in Jingdong, but official WeChat did not mention new news about children's wear in Jingdong store. The two-dimensional code was directly jumping to Tmall flagship store.

And this "choice" may be related to the sale of the brand previously on two platforms.

GUESS on Tmall and Jingdong two platforms released goods SKU and price, and activity information basically the same, but in the sales results are slightly different.

As of press release, GUESS Tmall store is the highest.

SKU is a T-shirt, the current price of 107 yuan, there are 1543 evaluation; Jingdong store the highest T-shirt is just the same as Tmall store, the price is also the same, although there is no monthly sales, but there are 93 evaluation.

Although GUESS Tmall stores and Jingdong stores sell goods, prices and activities alike, there is still a big gap between their sales performance.

From the data point of view, GUESS is more justifiable than Jingdong for Tmall.

Prior to the interview, Jose Blanco, President of GUESS Greater China, said that GUESS China is actively developing electricity suppliers, and the online part accounts for about 12% of the total sales.

In addition, GUESS also has a Chinese official website, but only fashion shows and brand information are available, and there is no sales function.

He said, "in China's current e-commerce platform, I am more optimistic about Tmall.

Tmall has large traffic and many users.

No matter which channel it is necessary to spend money to buy traffic, whether it is shopping malls or electricity providers, Tmall's good point is that the money spent on it is guaranteed, it is worth it.

In particular, GUESS's reputation in China is not particularly high, and it needs Tmall's popular platform to increase brand exposure. "

Obviously, branding has made a choice for channel advantages, and from CEO's speech, it can also predict its importance to double 11.

After years of development, the Tmall double 11 has become synonymous with the global shopping carnival.

And since Tmall launched its global strategy, the influence of this carnival has spread to the whole world.

It also attracts more and more international brands to enter Tmall to enter the Chinese electricity supplier market.

Over the past year, Martha Lahti, Centennial camera brand Leica,

Its fast fashion brand 8seconds, German toy brand Heros, Swedish fashion headphone brand Urbanears and other international brands have entered Tmall.

According to the disclosure, in October this year, Tmall will also hold a "tide Pageant" which has assembled many international brands.

There is no doubt that Tmall's double 11 global shopping Carnival will be more flavored this year.