Edgar Is Forced To Withdraw From The Market Or Withdraw From The Chinese Market.

The industry is changing rapidly. With the rise of the new generation of consumers, if they fail to respond in time, they will be abandoned by the market any time.

According to the world clothing and shoes net, recently, French underwear and

Retailer

(ETAM) was forced to withdraw from the market, and announced that the privatization of Finora, a major shareholder and a concerted action, would be passed.

To a certain extent, the Chinese market has affected the whole fate of Iger.

Underwear socks sell 100 years brand

To mention AGG, probably most consumers do not know its story. In fact, IgG is a centennial enterprise that once dominated the French fashion stage.

In 1916, German businessman Max Lindemann founded Etam in Berlin, initially selling underwear and socks.

In order to reduce the risk of overseas market development, Lindemann came up with the way of franchising to pfer the right of AGG to local partners.

In 1928, Lindemann's underwear business has gradually extended to Britain, France, Holland, Belgium and other countries.

At the same time, Milchior Martin, a major shareholder of AGG, opened an underwear chain in Belgium in the Milchior.

In 1929, Lindemann opened its first overseas store in Paris, France. After that, Martin Milchior acquired 21 IgG stores in France and established a factory. The management of IgG moved to the Milchior family.

When Martin Milchior died in 1958, Pierre Milchior began to integrate the business of the two big families into the ultimate Etam brand.

It can be said that for decades, IgG has been walking in the forefront of the times, and seized every trend. At the same time, it has made steady progress in 80 and 90s because of its inventory management.

The localization of Iger

AGG entered the Chinese market very early.

According to public information, IgG set up a branch enterprise in Shanghai in 1994, the British model Clothing Co., Ltd., and opened its first store in Shanghai in 1995.

In 1997, agge listed on the Paris stock exchange, with more than 1000 outlets worldwide, and its business extended to men's clothing, underwear, casual wear, sportswear and so on.

It is worth mentioning that at that time, IgG has opened over 700 retail outlets in China, with annual sales exceeding 900 million yuan.

For many people, though IgG is a foreign brand, localization is very thorough.

At the beginning of IgG's entry to China, products, retail management and logistics were guided by experts dispatched by the French headquarters. However, the core team of IgG China was implemented and implemented by the Chinese people.

According to a person who has served as a senior Chinese executive, AGG is the most popular in 1999 to 2007. At that time, the sales performance of the Chinese region increased by two figures, but France's profitability was not very strong.

It can be said that from 1997 to 2007, the development of the Chinese market made up for the achievements of Europe.

Based on the strong performance of the Chinese market, in 2009, PierrePilchior, the founder of IgG group, said publicly that "the demand for Chinese clothing market is still very strong, and we will increase more investment.

The Chinese market is very big. "

As of June 30, 2014, agge has 4246 stores in the world, of which 3083 are in China.

China is also defeated by China.

However, in the deep ups and downs, the real fall of agogue began with the financial crisis. While the European market was not balanced, it also encountered the serious impact of the new fast fashion brands H&M and Zara, and the barriers to the establishment of the Chinese market were soon broken.

It can be said that the Chinese market was once the most successful market of Iger, and the decline of Iger also came from the rapid change of Chinese consumers' preferences.

Some people say that AGG is actually prepared to avoid falling, but some of the preparatory work has been overturned because of the turmoil of equity and management in 2007.

In addition, IgG was still in the trend of growth and did not attract much attention afterwards.

"AGG is a fast fashion brand, but it's obviously very hard to agree with people in the industry," CEO, in 2012, said in an interview with the media.

From the speed of new products, Iger's efficiency is not faster than ZARA, H&M and UNIQLO, and the style is far from ZARA and H&M novelty.

Since 2013, sales in China have begun to decline.

In Europe and other markets outside China, IgG has become a brand that mainly manages underwear.

Starting in 2013, IgG began holding underwear show every year, like the secret of Vitoria.

In the first half of 2014, IgG closed 88 stores in the Chinese market and tried to set up an independent store in the shopping center.

By the end of 2016, the number of stores in China has been reduced from 2877 in 2015 to 2596.

In November 2015, AGG opened a shop in Shanghai's Zhengda square with an area of more than 100 square meters, selling only underwear.

This is the first store in China for the 100% underwear business, which has restored the display style of the French store.

After a round trip, IgG retired to the field where he first started.

But for China's consumption, AGG needs to start a new "underwear" story from the beginning, and the recognition of passing brands may increase this resistance.

In 2016, ege's operating loss in the Chinese market was 19 million 400 thousand euros, and its annual sales volume was 1 billion 292 million 100 thousand euros. The decline in sales was mainly due to the downturn in the Chinese market.

In the first half of 2017, the net sales in Europe in the first half of the year increased by 3.4%.

Now the process of "going garment" in China is also accelerating.

By the end of March 2017, the market in China has not improved and deteriorated. During the period, China's market plummeted 23.9% to 93 million euros.

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Countdown! Quit the Chinese market?

It is not difficult to find that in the clothing retail market, more than the old brand, which has been leading, has been somewhat declining.

When the channel was king, mastering the channels of department stores naturally mastered the market and consumers, but BELLE, AGG, ONLY and other traditional brands were nothing more than that.

Zhang Qi, director of Ethernet capital investment, told reporters: "from the point of view of product and business mode, in recent years, it has not been well aligned with the parent company, and the supply chain is also underdeveloped, which has a clear gap with Zara.

In addition, the electricity penetration of IgG is very low, and the rise of Shopping Mall has also brought some impact to the original business, and the new customer market has not been opened in time, resulting in the shrinking of the business and become a brand name.

Jia Xiaoyi, a clothing consumer research expert, believes that the size of IgG's single store is small, and its drainage efficiency is far less than that of the fast fashion store. This greatly reduced the flow of IgG to some extent.

In addition, Iger's product design is not very strong, and the design itself lacks characteristics.

Ten years ago, agogue was still a fashionable low price leisure brand, but now he has no advantage in the over competitive market.

Undoubtedly, on the basis of guaranteeing product quality and supply chain capability, clothing chain brands need targeted marketing channels and pricing strategies, and actively promote the continuous growth of business through new forms of pmission such as electricity supplier operation.

At present, IgG is forced to withdraw from the market.

The future will shift from the garment sector to the underwear sector, especially in emerging markets such as Mexico, Chile and South Korea.

But for the future of the most important market in the world -- China's future development trend, he did not mention it.

This may be the beginning of a countdown for a brand to withdraw from the Chinese market.

More interesting reports, please pay attention to the world clothing shoes and hats net.