However, Smith Barney reached its peak in 2011, setting a brilliant record of 10 billion revenue and 1.2 billion net annual net profit, but it went downhill and continued to decline. In 2017, it lost more than 300 million.
Seven years later, Smith Barney's revenue is now in the range of 6 to 7 billion yuan, far from its peak, the market value has shrunk by 80%, and the phone number list stock price is hovering at more than 2 yuan.
Zhou Chengjian once repeatedly emphasized in an interview with reporters that in fact, he does not understand fashion, "I just want to be a tailor all my life." When Smith Barney was faced with a difficult situation, the prescription prescribed was to find the former tailor.
The word tailor, perhaps his original intention is to emphasize quality, workmanship, and craftsmanship, but for users, buying clothes is not buying workmanship, but buying trends, fashion designs and individual styles. What about good workmanship?
As the classic copy of Zhongxing Department Store said, "cultivate temperament in clothing stores and display clothing in bookstores". Clothing is fashion psychology and sociocultural theory. The quality and cost-effectiveness of products are the basics, but products that meet the psychological needs and personalities of users are the key to successful marketing. So Smith Barney was defeated by the fast fashions of ZARA, h&m, and Uniqlo.
With the rise of a new generation of consumers and the tide of consumption upgrades, we are entering an era of failure of big brands. Consumer demand is changing rapidly, and leading brands are gradually being replaced by emerging brands.
According to IDG Capital estimates, most of the existing brands will be replaced by new brands in the next 10 years, and this proportion may reach more than 50%.
Procter & Gamble, once regarded as a god in the traditional marketing industry, has continued to decline, and the myth is no longer. In March this year, there was even an embarrassment of P&G delisting (although it was later proved to be a misunderstanding). Head & Shoulders, Rejoice, and Pantene