100 Years Ago, Etam AGG Sold Himself To Dongguan Boss And Another Brand Was Eliminated.

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Etam AI, who once monopolized the market of young girls with a fashionable women's clothing brand such as Europe's power and Taiping bird, quietly announced that she had withdrawn from China.

France, May 18th

The brand Etam (Chinese name is AGG) announced the sale of its garment business in the Chinese market, including Etam Weekend, ES and E & JOY, to an investment organization in Hongkong.

And itself, it only keeps underwear business.

The paction is run by an entrepreneur named Zhou Jinguo in Dongguan. He will also take over the Etam business in the Chinese market.

Hearing such news, those who listen to Jay Chou wear Metersbonwe and listen to SHE wear Daphne days.

It reminds us of those brands that have contracted many 80's and 90's youth wardrobes. JEANSWEST, Tonlion and lady's house are slowly disappearing in people's perspective.

Are young people gradually changing their tastes, or are they not changing fast?

Seize opportunities in the industry?

Hundred years of European brands lose China

As early as 1916, founder Max Lindemann opened its first Etam retail store in Berlin, Germany.

At that time, it was only selling underwear and socks. Until 1928, it developed into one of the mainstream chain stores in Europe. It hatched out sub brands including Etam Weekend, E-joy, ES, EHOMME, Etam Kids and Etam LINGERIE, and moved its headquarters to Paris, France.

As a European brand with a history of 100 years, Etam started the internationalization strategy very early, and it was also the first batch of international brands that came to the Chinese market first.

In 1994, Etam entered the Chinese market through the establishment of Shanghai British model Clothing Co., Ltd., and opened its first store in Shanghai in January of next year.

This mode determines the Etam's determination to implement localization in China, and adopts the business mode of integration of mining, manufacturing and marketing, that is, "local procurement, local production and local sales", which is better able to meet the needs of the Chinese market and respond in a timely manner.

On the other hand, Etam also upgraded its sales outlets from the exclusive stores to special counters in shopping malls, and expanded rapidly in the form of franchising.

These measures do help Etam quickly conquer young Chinese consumers in the short term.

In just 2 years, Etam has opened 723 stores in China, with annual sales exceeding 9 billion yuan.

There are only 1000 stores in the world.

Thanks to the rapid growth of the golden age, Etam was listed on the Paris stock exchange in 1997.

By June 2014, the total number of Etam shops reached 4246, of which 3083 were in China.

Almost half of it.

However, since 2002, fast fashion brands have entered China in succession, and the business model of Etam has begun to be hit.

According to LADYMAX reports, some analysts believe that there are two main reasons why Etam has been declining in the fierce competition. One is the loopholes in the production mode of its authorized brand and agent production in the early years, resulting in subsequent interest disputes. The other is that its pace of change can not keep pace with the whole industry trend. While the domestic brands such as Taiping, Europe and so on continue to exert their strength, Etam is still in the same place.

The younger pformation of local fashion brands is squeezing the market share of Etam.

The fashion awakening of the younger generation, coupled with the right to fashion discourse, is still in the West. Too Sinicization of Etam has made it look like an international brand from the fashion capital of Paris for a time.

Etam's apparent decline began in 2013 and then closed in China, closing 88 in the first half of 2014.

By the end of 2016, the number of Etam shops in China has decreased from 2596 to 2877 in 2015.

Clothing rages and turns to old underwear.

In the clothing market retreat, Etam picked up the old business.

Laurent Milchior, chief executive of IgG group, has said that IgG will enter a new stage of development and "focus on developing its international strategy of underwear business with core advantages".

In Europe, Etam has shifted its efforts towards underwear earlier.

In 2009, Etam sought the endorsement of Russia's supermodel Natalia Vodianova.

Since 2013, Etam has held a large underwear show every year. During the fashion week, it will also invite musicians such as Breakbot and Kavinsky to give special performances.

In November 2015, Etam opened an underwear store in Shanghai's Zhengda square, with an area of more than 100 square meters, the first one in China.

In the first half of 2017, Etam opened 21 new lingerie stores in the world.

In Shanghai, Etam has also opened second lingerie stores in the Crystal Galleria Galleria shopping mall, which is much larger than the first one.

At this time, Etam, in style and choice of goods, is close to the keynote of its French stores, and began upgrading the brand image it had accumulated in China.

"We are now busy looking for new sites, in addition to Shanghai and Shenzhen, Chengdu and other major cities in China.

We used to have a strong sense of existence in department stores, but now we prefer shopping centers.

Marie Schott, general manager of Etam, interviewed by retailinasia.com at the end of March last year, said: "underwear is completely different from garment business.

Our underwear business is getting better and better, but the clothing business is struggling. "

But Etam, which shifted to the underwear market, has undermined the foundation in the fashion industry.

After that, it was difficult to stop the decline, and continued to shut down. In August 2017, Etam had no choice but to withdraw.

According to the last earnings report issued by Etam, by the end of June 30, 2017, the quarterly revenue plunged 28.7% to 48 million 400 thousand euros, with the group's revenue in the two quarter falling by 3.2% to 275 million 500 thousand euros.

Unfortunately, the gap between fast and fashionable brands is also gradually widening. The Zara parent company's Inditex sales have double digit growth in the same period.

The market size of underwear industry is generally optimistic, and there is no oligopoly in the industry, gross margin is higher than clothing.

But can Etam rely on underwear to restore its growth momentum in the Chinese market?

Boss of Dongguan

Public information shows that at present, Etam has 1600 garment sales outlets in China and more than 4 million of Tmall flagship stores.

And these are in China.

The business will be fully taken over by a Dongguan boss Zhou Jin Guo.

There is so little information about Zhou Jinguo in the media that he can only see his face.

He was the founder and chairman of Joe Fashion International Fashion Group and came to China in 2008.

Famous town, Humen Town, Dongguan.

Initially, the brand focused on foundry and export, providing OEM OEM processing and design and R & D services for well-known women's clothing brands both at home and abroad.

After that, gradually formed six brands, including JAOBOO, AN&ANMAN, JINFEN, YINFEI, and RUISE.

Today, the group is headquartered in Hongkong, targeting light luxury, targeting 25-40 year old women.

According to the report in November 2016, Qiao Bo has more than 1300 outlets nationwide, developing more than ten thousand new products every year, producing about 1200000 high quality garments, and won the 2013 influential brand of CCTV's clothing industry in China in 2013.

In November 2016, Zhou Jin Guo also said in the media interview that in the next three years, the company will develop more than 1500 shops and more than 100 fashion art life experience museums.

"Set up O2O experience shop, open online private customization platform -- APP.

JAOBOO will also provide free overall image design, booking on door fitting service and coffee gourmet, and promoting a series of free mode and cross boundary thinking and introducing direct selling mode will take the road of light luxury development.

For this matchmaking, Zhou Jinguo responded that taking over the garment business in the Etam China market is conducive to its management team's better access to the operation mode of the international brand, and has a positive synergy with Etam's long-term accumulation of consumer groups in China.