The men’s fashion brand that has been popular for nearly 20 years has created a market value of 25.451 billion with its quality and style, becoming the first domestically listed brand. Men’s clothing brands are now facing the dilemma of store closures and bleak business.

2,000 stores closed

If you ask those born in the 1970s and 1980s who their favorite men’s clothing brands are, I believe someone will definitely say Septwolves. The reason why they are so sure is because the Septwolves back then are no less than today’s international brands such as Armani. At its peak, Septwolves opened 4,000 stores across the country and was endorsed by tough guy characters such as Zhang Hanyu and Sun Honglei.

However, today’s Seven Wolves are in a business dilemma. Affected by the epidemic, in 2020 Domestic clothing sales in the first three quarters were not optimistic, with a total amount of only 567.9 billion yuan, a sharp drop of 16.83%.

It is worth noting that the former men’s clothing overlord Seven Wolves only accounted for 60 million of the 567.9 billion sales. On August 22, 2021, The company’s market value has reached 4.534 billion, which is a sharp decrease of 83% from the highest point of 25.451 billion.

In addition to revenue problems, Septwolves are also facing shrinking market share. In 2020, there were 1,912 physical stores in Septwolves. Eight years ago, Septwolves had 4,000 stores. .

Affected by the sharp reduction in the number of stores, Septwolves began to accumulate a large amount of products. As of August this year, Septwolves still had 28,000 items in inventory.

At the same time, in March this year, Li Shujun, the general manager of Septwolves, also resigned and left. Li Shujun has always been regarded as the capable person of Septwolves and is also well-known in the industry. Now her departure is undoubtedly another blow to the Seven Wolves.

A jacket is worth one-third of the salary

Faced with the current predicament of the Seven Wolves, many people also feel very sorry. After all, the former Seven Wolves were well-known characters domestically and even internationally.

Seven Wolves was officially founded in 1990. The founder Zhou Shaoxiong was only 25 years old at the time. With an initial capital of 50,000 yuan and six like-minded friends, seven people Officially created a new trend of Chinese men’s clothing brands.

Put on Septwolves and look heroic” and other slogans that hit people’s hearts quickly made Septwolves a brand that men born in the 70s and 80s rushed to buy.

At that time, a Septwolves jacket introduced a color-changing jacket through innovative design. The selling price is 100 yuan, which may not seem expensive now, but in the 1990s, the average salary of each person was only about 300 to 500 yuan, and a piece of clothing cost one-third of the salary, which was already A sky-high price product.

But even so, there are still long lines of people buying clothes in the Septwolves store, and the supply has even reached the point where demand exceeds supply.

In 2004, Septwolves was listed in Shenzhen, becoming the first domestic men’s clothing company to go public, with the highest market value of 25.4 billion and the largest number of 4,000 stores.

Socks products have become the biggest awareness of the new generation of consumers

If we follow this development If the momentum continues, Septwolves may continue to become the top men’s clothing brand in the country. However, with the arrival of 2014, the development of Septwolves began to fall into trouble.

The rapid rise of e-commerce platforms back then, and the development of the Internet economy severely squeezed the living space of the real economy. Septwolves’ domestic stores were the most severely affected. Performance also took a turn for the worse. In 2014, Septwolves was forced to close 50% of its stores across the country.

At the same time as the e-commerce platform, there are also foreign brands. Relying on various fashion programs and stage displays, foreign brands have become more and more popular among domestic consumers. The object of pursuit by investors has brought a serious blow to domestic companies such as Septwolves.

And Septwolves itself also has quite a problem, due to the homogeneity of its products. The phenomenon is serious, and the price of its own products has remained high, making the development of Septwolves somewhat difficult.

This year, Septwolves was criticized by CCTV for product quality issues. The product tag stated that it contained 96% wool, but in fact, the Septwolves were not included. Mixed with wool, such negative news has caused immeasurable losses to Septwolves’ brand influence.

Young people think that Septwolves is a manufacturer of underwear and socks.

Today’s seven wolves are in major citiesIt still has many stores. If it can devote itself to product innovation and the transformation of new business models, the development of Septwolves may still turn around.

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