Adidas and Esprit’s Mutual Maneger
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 future Esprit China CEO, and she will take up the official post next February.
At the end of 2010, the former Esprit China regional general manager left his job to a fashion brand of the United States, Tommy Hilfiger, and became the latter’s first China regional CEO. In the past 8 years appointed as the general manager of Esprit China, he once was a member of China regional foundation and management team.
Then, Esprit’s general achievements had already showed decadent trend of slow increase. This September, the latest Earnings Season showed that by the end of this June, Esprit’s net profit fell 98% year on year, from the previous year’s HK$ 4.23 billion to HK$79 million as well as this brand’s profits got declining in triennial. 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.
Following this awful annul report, Esprit Holdings also announced a future four years brand remodeling plan, reached up to HK$18 billion. The enterprise proclaimed that 80 stores will be closed gradually, among them 65 European stores and 15 Asian stores. They will increase investment of redecoration and development of new sales network among more than 200 stores in China and other areas. 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.
This China strategy will be concretely carried out after the new CEO’s inauguration. Relevant people of Esprit Holdings investors said to reporters on November 16th that, with abundant managing experience, Ms. Li will be chiefly responsible for the performance of metamorphosis in China regional parts.
Public information displays Ms. Li has been worked 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 felt anxious whether the way that Adidas got sales increase through overstock would continue to Esprit. For this reason, the principles said Ms. Li would be just in charge of implementing their strategy of China region within the frame scope, which has already been established, yet there is no such fears.
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