Another Giant Of Women'S Wear Brand Went Bankrupt And Closed More Than 2000 Stores!

According to the civil ruling, Shanghai Luzhou knitting apparel Co., Ltd. (hereinafter referred to as "Shanghai Luzhou") once filed a lawsuit with Aige company over processing contract disputes. In December 2018, the court made a civil mediation statement, and egger company paid Shanghai Luzhou 4.4973 million yuan. However, Aige did not fulfill the relevant obligations, so Shanghai Luzhou applied to the court for enforcement. In March 2019, the final execution procedure was terminated because there was no property under the name of AIG.

Therefore, in July 2019, Shanghai Luzhou applied to the court for bankruptcy liquidation on the ground that Aige could not pay off its due debts. On October 8, 2019, the court made a civil ruling No. 155 Hu 03 Po, ruling to accept the bankruptcy and liquidation case of the debtor Aige company, and appointed an administrator. In March this year, bankruptcy documents were sent to aiger.

In addition, Shanghai yingmo Garment Co., Ltd., a branch of Aige when it entered the Chinese market in 1994, was also applied for bankruptcy reorganization.

Up to now, the two companies involved in a total of more than 1500 cases of legal proceedings, mainly concentrated in labor disputes, labor contract disputes, processing contract disputes, sales contract disputes and so on, and has been repeatedly listed as the person to be executed, and the person to be executed for breaking faith. In addition, its general manager and legal representative, LV Yixun, have been listed by the court as restricting high consumption personnel.

This year's double 11, a "double 11 special" news released by the official number of Shanghai bankruptcy court, is to deal with egger's remaining assets at the price of "one off the whole house".

The shop name of this batch of clothes on the shelves is "Shanghai egger manager's special store". At present, there is only one product left in the relevant online stores, the price is only 39.9 yuan, and the sales volume is more than 200 pieces.

As one of the first batch of overseas clothing brands to enter the Chinese market, egger's localization strategy can not be said to be unsuccessful. It adopts the business model of "local procurement, local production and local sales" to better meet the needs of the Chinese market. Today, when it comes to the impression of egger, many consumers mistakenly think that it is a "fake foreign brand".

In fact, Etam started with underwear and socks in 1916. Although it is a French brand, its founder is German. In 1994, egger officially entered the Chinese market and opened its first retail store in Shanghai in 1995. In the next 10 years, egger has had a good journey in China. As of 2012, egger has opened 3460 stores in China, reaching the peak.

Egger's most brilliant period was from 1999 to 2007. At that time, its performance in China was able to maintain double-digit growth, while the profitability of France was not strong. The development of China region made up for the brand's performance in Europe, but now the situation is just the opposite.

But since 2012, egger's performance has been falling precipitously. In 2012, AIG group's operating revenue in China market dropped from 25.4 million euro in 2011 to 1.5 million euro. The company attributed the reasons to the development of distribution channels, fierce market competition and unattractive products.

In the second half of 2014, the company began to close stores in China. By 2017, egger's stores in China were reduced to 2442. Now, in 2020, egger almost disappeared in China. "Slow" brand has not been able to compete with "fast fashion" wave.

Some analysts believe that there are two main reasons for Etam's declining in the fierce competition. One is that the main way for Etam to expand in China is to join in. The fast-growing stores were once regarded as a powerful tool to increase revenue, but excessive expansion also brought hidden dangers. With the increase of the number of retail outlets, the number of retail outlets has been increasing. In addition, there are loopholes in the production mode of authorized brand and agent production in his early years, which also led to a continuous stream of interest disputes and painstaking efforts.

Second, its change speed can not keep pace with the overall industry trend. While domestic brands such as taipingniao and oushili continue to make efforts, Etam is still in the same place. Especially after the fast fashion brand entered China, its rapid expansion speed in China also greatly overstocked AIG's market share. Egger's product design is far less attractive and cost-effective than UNIQLO, H & M, Zara and Forever 21.

In order to save China's market performance, egger has tried to introduce underwear stores. In November 2015, the first egger underwear store officially opened, but still unable to save the brand decline. In 2015 and 2016, AIG's operating losses in China reached 7.4 million euro and 19.4 million euro.

In August 2017, Etam D é development (hereinafter referred to as "egger group") was officially delisted from the market at the same time as the overall failure of the Chinese market.

For many post-80s and 90s, despite the changes of the times and the emergence of various fashion brands, egger is still the most impressive "white moon" in their youth. Therefore, after a long time, I suddenly saw the news of "the bankruptcy of the women's clothing brand egger" on the hot search, which was undoubtedly a bolt from the blue.

Some netizens recalled that wearing egger as a student was a matter of double face. Many female college students are proud of having a piece of egger's clothes, but as time goes by, things that can't keep up with the times will eventually be eliminated.

But more netizens still lament: the tide card of their school days is so cool, the end of youth.

As a matter of fact, under the impact of the new retail mode and e-commerce, egger is not the only one who has been photographed on the shore. The big brands of the contemporary youth's school age have declined one by one

JeansWest, which officially entered the mainland market in 1993 and once swept China like a tornado, is now experiencing a decline in its business in China. It has laid off more than 6000 people, closed more than 1300 stores, and its performance has declined by more than 65%.

Founded in 1998 and known as "China's version of Zara", La Chabel has also rapidly declined after reaching the goal of "the first domestic garment enterprise listed in both a and H". After Gaoguang, which has a revenue of 10.4 billion yuan in 2017, in 2019, La chapel closed 4391 stores, with an average of 12 stores closed every day. At the same time, it has a debt of up to 7.3 billion yuan. The share price of La chapel has also suffered Waterloo together with the performance. In the three years since the A-share listing, the company's share price has plummeted by 75%, and the latest stock price is only 1.86 yuan, which is on the verge of delisting.

Daphne, a generation of "shoe king" founded in 1990, has also completely withdrawn from physical retail. From 2016 to 2019, the company lost nearly HK $4 billion in five years, and the number of stores has dropped from 6881 in 2012 to less than 300 now. What's more, in the secondary market, the company has dropped 97% since its record high of HK $11.17/share in 2012, and its market value has shrunk by nearly HK $20 billion.