Today, different from the past, the name of the I.T Group’s trend vane has been banned by consumers. Without price advantage and time advantage, can it give consumers reasons for consumption?

Editor’s note: This article comes from WeChat public account “BoF Fashion Business Review” (ID: Business_of_Fashion).

OF: Sharon Zhou

Edit: Queennie Yang

Shanghai, China—The IT Group has an unknown full name, called “Income Team”, which means “profit-making team.” This outspoken name shows the ambition of the group, but now it is This goal is moving away.

On May 27, IT Group announced its low-end final results for the year ended February 29, 2020. Its fiscal year 19/20 performance was not satisfactory: total turnover decreased by 12.6% year-on-year to HK$7,719,400, Several important indicators, including regional segment revenue and brand segment revenue, declined, with a net loss of HK$745.8 million.

Among them, by retail area category, the Hong Kong and Macau markets accounted for 33.9% of the Group’s total turnover. Their turnover decreased by 23.5% year-on-year to HK$2,602,200, and the operating loss was HK$671.7 million. The Mainland China market accounted for 48.6% of the Group’s total turnover, with a year-on-year decrease of 9.0% to HK$3.7514 billion, and total retail revenue decreased by 9.4% to HK$3.7001 billion; operating losses were HK$236.4 million.

Due to the impact of the previous street riots in Hong Kong, since the second half of last year, Hong Kong’s retail industry data has continued to experience double-digit declines. According to data released by the Census and Statistics Department of the Hong Kong Special Administrative Region, Hong Kong’s retail sales in 2019 fell by approximately 11.1% compared with the previous year, the first time in three years that Hong Kong’s annual retail sales have fallen, and the decline is quite different from the 8.7% increase in 2018 Big. After the outbreak in February, the already sluggish Hong Kong tourism industry worsened. The Hong Kong Tourism Board has previously stated that the preliminary statistics of visitors to Hong Kong in April 2020 were about 4,100, down nearly 100% year-on-year. Among them, there were 2945 mainland visitors, a year-on-year decrease of about 99.9%, which again exacerbated the depression of the retail industry in Hong Kong. The negative impact of the epidemic on retail sales also occurred in Macau.

In order to stop bleeding in time, I.T Group closed 28 loss-making stores in Hong Kong and Macau within a year.