Low Performance In China, AGG Goes For Make-Up.

Act as France Famous brand AI GE's important branch of the international market, the number of stores accounts for 70% of China's market performance is showing a downward trend. The results showed that China's turnover in the two quarter was 69 million 300 thousand euros, which has increased from 2.2% in the same period last year to 5.6%. In order to regain the take-off point for China's performance, IgG plans to launch 600 cosmetics products before September to enter the cosmetics industry. However, in the cosmetics market, it is not easy for Newcastle agate to win a place under the attack of international brands and local cosmetics brands.

In the first quarter of this year, the sales of IgG in China dropped by 15.2%. Correspondingly, IgG has contracted 88 Chinese sales outlets. In the same period last year, Igor had already contracted a series of stores and reduced 117 stores. China is no longer a good place for Eiger. In the first half of this year, IgG's sales volume was 594 million 800 thousand euros, a slight increase of 0.3%. European sales rose by 7% to 4.12 euros, and China's sales fell 11.9%. The main selling power of European business comes from the Etam brand and its underwear brand. In the first quarter, the business reform of the group began to work, and the two quarter results narrowed.

　　 By In June 30th, there were 4246 stores in the world, and 940 and 3083 in Europe and China respectively. In addition, there are 223 stores operated by international franchisees. In the period of weak growth in Chinese clothing, the main way for AGG to improve his performance is shutting down shop stops. Since the beginning of this year, the company has closed 200 sales counters and closed 88 stores.

According to the National Bureau of statistics, the volume of clothing retail sales increased by 11.5% over the same period last year. The growth rate was 13.6 and 6.2 percentage points lower than that in 2011 and 2012 respectively, showing a three consecutive year slowdown, the lowest since 2003. Slowdown in growth rate, clothing prices rose significantly narrowed. In the doldrums of the big environment, Iger hopes to quickly clean up the merchandise inventory through the off-season, reduce personnel costs and adjust regional marketing structure to improve performance. However, the problem in front of Iger is not so easy to solve.

The most powerful opponent of the brand life cycle entering "aging" is ZARA, H&M, UNIQLO, GAP and other fast fashion brands. These fast fashion brands are spreading across the country in China. ZARA and H&M also use the online sales platform to extend the channel to the two or three line or even lower line market. In the battle with fast fashion, not only are IgG, Esprit, ONLY, VERO MODA and other brands become the losers. A shopping center responsible person said that the shopping center will raise rents and management fees every year, but when negotiating with brands such as fashion brands, the brand side has been pouring out its poor performance and unable to afford more rent and management fees. Over the years, these brands are the main buyers of high rents in shopping centres.

In the past two years, the performance of IgG in China has only dropped one key word. After the brand golden period has passed, although the six brands, but IgG product series, style is relatively identical, the audience group is single, brand activity has been much worse than before. This also allowed Iger to shift her attention to the fast growing cosmetics market. The company said it will launch 600 cosmetics, 32 accessories and bath products by the end of September.