Over the past eight months, the head of Zhou Ching-cheng in 19 provinces and cities to buy or rent 39 commercial real estate acquired, involving a total of 785 million yuan of funds for the ME & CITY campaign. Surprisingly, even at such a speed, or did not meet Smith's expectations. Zhou Chengjian hope that in 2009 opened hundreds of ME & CITY outlets, but the reality is only more than 70 only. ME & CITY developed too fast, but only a year's time, already in the first and second tier cities across the country more than 70 stores, and the shop area is very large .Beijing, for example, the smallest shopping mall more than 800 square meters, the other two stores And the flagship store, respectively, reached 3000 square meters and 10,000 square meters of scale. "ME & CITY swallow (a pseudonym) told reporters," no way, the boss rich. "August 28, 2008, Smith Barney was officially listed to Issue price of 19.76 yuan per share issued 70 million shares, with the opening day to close at 26.9 yuan, one day worth of Zhou Chengjian soared to more than 160 billion yuan. Take a look at the subsequent weeks Ching-cheng in ME & CITY hit a lot of money, Swallow firmly believe that the boss is rich and powerful. However, swallows do not know is that Zhou Chengjian not how comfortable life now. In the third quarter of 2009, Smith Barney net profit plummeted by nearly 60%. ME & CITY, which dropped a large sum of money, is not only losing money, but plans to realize 100 stores within one year are now stranded. Can run 3,000 stores but can not manage a good 100 stores "I venture the first 15 years, there has been the only negative growth in the third quarter.Afterwards the financial statements peel off layer by layer, the more I see my heart faster." Zhou Chengjian not Expected to be, in its reputation with the United States the most heyday of the year, this is not a "glorious" performance. According to the third quarter 2009 earnings report, Smith Barney net profit of 68.372 million yuan, down 57.5%; total operating income increased 7.88%, significantly lower than market expectations. ME & CITY was pushed to the cusp when everyone started looking back to find reasons for Smith's performance decline. Heavily hired well-known Hollywood niche, "Prison Break" actor Wentworth Miller and international supermodel Bruno Tenorio as the brand global image of the spokesman, designer Luc Bruno first to create a world-class designer team ... ... Zhou Chengjian invested heavily in ME & CITY and high-profile publicity, so many people mistakenly believe that this year, Smith Barney did only one such thing. In fact, ME & CITY has been placed high hopes on Zhou Chengjian, is the complementary and extension of the Smith Barney brand, which focuses on the campus. Zhou Chengjian wants to grasp the loyal young consumers bred by Smith Barney in the past 13 years in order to adapt to the growth of their age and change of spending habits and preferences after entering the workplace. Helpless things are not what Zhou Chengjuan wants, ME & CITY, which should become the other foot of Smith Barney, has almost become the "pain" of Zhou Chengjian and Smith Barney. This is just the first step for ME & CITY to "make a comeback." After the first shot in the brand started, ME & CITY began in the country, "buy shop." In the first eight months of 2009, Smith Barney's "buyer" traveled almost all over the country. Successively in 19 provinces and cities to buy or rent access to 39 commercial real estate. Among them, 6 commercial properties in Zhejiang Province, Fujian Province and 6 Provinces, which purchased nearly 30,000 square meters, each have an average floor area of ​​nearly 5,000 square meters, involving a total volume of 785 million yuan. Smith Barney said that due to lack of operational experience led to delays in the shop process, the average delay of a single shop up to 77 days, not only the sales revenue is not yet achieved in time, and the cost rate rose and caused a loss of 100 million yuan. In the first three quarters of last year, Smith Barney sales cost rate was 30.13%, while the ratio was 20.94% in the same period of 2008, a substantial increase of 9.19 percentage points. "One-time spread of hundreds of stores, planning is not reasonable, the cost-benefit time is not matched well; new brand of store construction does not meet expectations, the construction speed is greatly delayed.At the same time, stores and headquarters need to increase a lot of talent, Labor costs are also greatly increased, these issues have increased the company a lot of costs. "Wang Wei, Merchants Securities analyst seems, on the one hand Smith Barney lay the foundation for long-term development stage, on the other hand there is indeed a lack of experience, management is not in place s reason. Since 1994, Smith Barney has been operating apparel business, and reputation and performance are rising steadily. In 2006, the system-wide retail sales exceeded 4 billion yuan, creating a miracle in the industry. System-wide sales in 2008 reached 7 billion yuan, ranking first in the Chinese market and international casual wear brands. Zhou Chengjian has been called the genius of the fashion industry. From the store shop situation, the United States has long been strode out big step, from the first-tier cities to the second and third tier cities, can see Smith Barney's "fate." Smith Barney has nearly 3000 stores nationwide experience as a native of local enterprises, Smith Barney more understanding of the Chinese market demand, 100% of its first-tier cities, 66% of second-tier cities, third-tier cities 33% of the outlets coverage, but also to many International giants can not be reached. Now ME & CITY is only a hundred stores only, there was such a big variable, Smith Barney's "inexperienced" really puzzling. Perhaps, this "strange" lack of experience less than opening 30 stores, more terrible than the net profit decline.
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