[Thinking] AGG China'S Business Pformation: Why Does A Generation Of Youth Brands "Fall"?

The French fashion brand, known as the lady wind, carries a generation of young people's youth memory. It has experienced rapid expansion and localization, but it eventually shrank in the competition.

After delisting 9 months ago, AGG recently announced that the group has sold its brand clothing business in the Chinese market to a Hongkong investor, retaining underwear business in the Chinese market only.

Experts in the fashion industry believe that even though they have changed hands with dot resources, the brand has lost its dominant position in the Chinese market, and it is difficult to turn over again.

Business pformation

AGG sells clothes made by Etam Weekend, ES and E&JOY brands in the Chinese market.

AGG will only retain the underwear business of the group, and will hand over all the garment business that has been sold to the Chou Jin State.

Public information shows that Zhou Jinguo is the founder and chairman of Jaoboo Fashion Group International, Dongguan.

Laurent Milchior, chief executive of IgG group, said that after the completion of the paction, the group will focus on the development of AIG's core underwear business.

It is reported that after the paction, Hongkong investors will not only have the right to use Etam Weekend, ES and E&JOY in the Chinese market, but also get the full platform network sales channels of the IgG group's relevant brands in Greater China.

The paction is expected to be completed by May 31st of this year, but the amount has not yet been announced.

Beijing Business Daily reporter found that at present, China's official website has been closed, the 400 customer service of the website has also been invalid.

Ai Group China brand agent Shanghai British model (IgG) Clothing Co., Ltd. telephone has been unable to connect.

Subsequently, the reporter learned from the customer service of Tmall's flagship store that the Chinese official website has merged with the flagship Tmall flagship store, and has not received the notice from the brand side about the ready-made garment business. The flagship store will not be closed in the near future.

Losing China

Last year, IgG was forced to privatize its market because of its continued performance.

In August 2017, agge announced its delisting on the Paris stock exchange.

At that time, IgG's move was not a group's initiative to privatize, but a mandatory delisting behavior initiated by major shareholders.

According to public information, the two family members of Milchior and Tarica and Lindemann share a 96.28% stake in the group. In June last year, they announced the privatization of the Ege group at a price of 49.3 euros per share.

Edgar once led the fashion industry and gradually declined in the market shock and slow development.

According to the pre earnings report of ege group's delisting, in 2016, sales fell 0.3% to 1 billion 292 million 100 thousand euros, down from 1 billion 296 million 600 thousand in the same period in 2015, and 1% in comparable sales.

In those days, the group's sales in the Chinese market fell 12.3%, from 417 million 300 thousand euros in the previous fiscal year to 365 million 900 thousand euros.

At that time, IgG said that after delisting, it would focus on the European market as the potential international market.

According to the data, by the end of 2016, the number of stores in the Chinese market of IgG group was reduced from 2877 in 2015 to 2596.

In the Chinese market, the Ege group accounts for more than 50% of its stores. In 2016, it closed 281 stores, closing almost 10% of the Chinese market.

In the two quarter of 2017, the number of doors in the Chinese market was reduced to 2442.

The Beijing Commercial Daily reporter saw the official public number of the Etam member club of the IgG group. At present, the brand has 796 stores in the Chinese market, and online stores only enter a channel of Tmall mall.

The Beijing Commercial Daily reporter also learned that the APM store in Beijing was also removed from stores in early April and replaced by domestic clothing brand Taiping bird.

Reporters in the review and retrieval platform to see that the brand of IgG group currently has 66 stores in Beijing, many of which are located in the mainstream trading area of Xidan Joy City and Han Guang Department store.

Why fall?

In the past, IgG officially entered China in 1995.

And opened its first store in Shanghai.

But by 2014, IgG gradually shrank, closing 88 stores in the Chinese market.

How has the youth brand that has been popular has been on the road of decline?

Yang Dayun, a well-known fashion industry investor and excellent Italian CEO, said that in 90s of the last century, IgG entered China, which had fewer brands in the same period, and its products updated and opened faster.

Subsequently, Iger and the brand Taiwan dealer generated a five year equity dispute. During this period, the development of the brand was stagnant.

Commentators Ma Gang said that during the sensitive period of the new consumption revolution in China, he did not catch the market change hot spots in time, and the product renewal speed was too slow. He still used the original marketing and management operation strategy, and was unable to cope with the rapidly changing market.

The international brand that is very popular in the Chinese market is not an IgG family, and the Esprit of the same period is also declining.

When foreign clothing brands rush to China, Zara, H&M and other international brands, as well as the ONLY, VERO MODA and Jack Jones brands of the group, rapidly expand and occupy the share of China's young clothing market.

Yang said that IgG missed the best opportunity for development and was gradually replaced by the above fast fashion brands.

At present, the Chinese market is changing rapidly. Even though IgG is pferring with high-quality channel resources, consumers can choose more brands instead of brands.

He believes that the brand has lost its dominant position in the Chinese market, and it is difficult to turn over again.