On November 10, the Shanghai Bankruptcy Court’s public account released a “Double 11” special news, mentioning the bankruptcy and liquidation case of Shanghai Aige Clothing Co., Ltd. (hereinafter referred to as “Aige Company”), which will be displayed in the online store with the slogan “All Dispose of assets at a special price of 10% off. It is reported that during the “Double Eleven” period, the store attracted more than 84,000 views, nearly 6,000 visitors and more than 400 transactions that day. The first batch of more than 400 pieces of clothing put on the shelves was quickly sold out as soon as it went on sale, achieving good results. Children’s Clothing Observation browsed the Taobao online store Shanghai Aige Manager Specialty Store and found that there was only one product left in the online store, priced at 39.9 yuan.
As the first batch of overseas clothing brands to enter the Chinese market, Aige’s localization strategy is not unsuccessful. When talking about the impression of Egger today, some consumers mistakenly thought it was a “fake foreign brand”. In fact, Egger started its business in the sock industry in 1916. Although it is a French brand, its founder is German. In 1994, Egger officially entered the Chinese market and opened its first store in Shanghai in 1995. It has been 26 years since.
But in March this year, the Shanghai No. 3 Intermediate Court issued a notice to the effect that “based on the application of Shanghai Luzhou Knitting Clothing Co., Ltd., made on October 8, 2019 (2019) Shanghai 03 broke the Civil Ruling No. 155 and ruled to accept the bankruptcy liquidation case of the debtor Shanghai Egg Clothing Co., Ltd. and appointed Shu Lun Accounting Firm (Special General Partnership) as the administrator.” Next, there are creditors after a series of companies entered bankruptcy Declaring claims, convening creditors’ meetings, etc. were all carried out in June and July this year.
In 1994, Egger officially entered the Chinese market and adopted a business model integrating procurement, production and sales, that is, “local procurement, local production, and local sales” to better meet the needs of the Chinese market. It has rapidly expanded through franchising and has almost become a standard brand for women’s clothing in shopping malls. As of June 2014, Egger had 3,083 stores in China. In fact, in 2010 and 2011, Aiger Group’s performance in the Chinese market continued to grow, and the change began in 2012. From the perspective of revenue, in the Chinese market in 2012, the AIG Group’s revenue plummeted from 25.4 million euros (approximately 198 million yuan) in 2011 to 1.5 million euros. The group attributed the reason to the development of distribution channels and fierce market competition. and unattractive products. In 2013, Egger began its most serious performance decline, and they began to close stores in China one after another. In the first half of 2014 alone, 88 stores were closed. By the end of 2016, the number of Egger stores in China had dropped from 2,877 in 2015 to 2,596.
Some analysts pointed out that the main way for the Iger Group to expand in China is through franchising. The rapid growth of stores was once regarded as a revenue-increasing tool. However, over-expansion also brings hidden dangers. In 2012, the number of Aiger Group’s retail points in China reached 3,460. As of the end of August this year, Uniqlo, which has always topped the Double 11 sales list, had only 767 stores in China.
Problems such as customer diversion, inventory backlog, low efficiency of retail points, and profit sharing among franchisees, etc., followed one after another with the increase in the number of retail points, forcing the Aige Group to start closing stores. As of June 30, 2017, Iger Group’s sales points in China had shrunk to 2,442, but still accounted for 64.83%. In order to digest store inventory, discounts have become the norm, and this damage to the brand is inevitable. To this day, some consumers still have the impression that Egger is always on sale.
In addition, Iger’s product design has also become a problem that consumers often criticize. After fast fashion brands entered China, the pressure on Aiger Group increased sharply. If it does not develop quickly in the Chinese market, it will be a setback.
Some analysts believe that there are two main reasons for Etam’s decline in fierce competition. One is that there were loopholes in its production model of licensing brands and agent production in its early years, which later led to interest disputes. The other is that The reason is that its speed of change cannot keep up with the overall industry trend. While domestic brands such as Peacebird and Oshili continue to make efforts, Etam is still standing still. In addition, Qianzhan Industry Research Institute pointed out that with the explosion of commercial real estate, international fast fashion brands are expanding rapidly in China. With the entry of many foreign fast fashion brands such as UNIQLO, H&M, ZARA, and Forever 21 into China, fast fashion has ushered in an era of “horse racing” that has lasted for nearly 10 years.
In this context, channel adjustment is imperative. After the Chinese market performance declined sharply in 2012, Aiger Group became aware of this problem. However, facing a total of more than 3,000 Aiger retail outlets, mainly located in department stores, adjustment is not easy. According to conomie reports, the relevant person in charge of Egger Group once said that one of the reasons for the decline of Egger’s performance in the Chinese market in 2012 was the deterioration of revenue efficiency in department stores, but the brand only has 88 sales points in shopping malls. The person in charge also added that it is not easy to enter Chinese shopping malls, where rents have reached European levels, but customer consumption rarely meets corresponding expectations, making it difficult for points of sale to make profits. At the same time, Aige’s expansion method focusing on franchising also limits its expansion into independent stores with high rents.
Etam’s 2016 financial report shows that the companySales fell by 0.3% year-on-year to 1.292 billion euros, comparable sales fell by 1%, and sales in the Chinese market fell by 12.3% to 366 million euros. During the same period, Zara parent company Inditex’s sales recorded double The number of digits increased rapidly and exceeded 23 billion euros for the first time.
In this regard, in the 2016 annual report, Egger Group bluntly stated: “Eiger’s performance in China in 2016 was disappointing. We have opened ready-made clothing stores in China for 22 years, but due to the slowdown in consumption and store Customer traffic has declined and is currently facing difficulties. The three major brands ETAM Paris, ETAM Week-End and ES are mainly distributed in department stores. However, due to the continued decline in department store customer traffic, the above-mentioned brands have been affected. At the same time, the series of these brands The products are also not very popular.” Now, Iger has retreated into the original underwear field.
In addition, Tianyancha App shows that Shanghai Aige Clothing Co., Ltd. was established in July 2001 with a registered capital of US$17.03 million. Its legal representative is Lu Yixun. Its business scope includes the design, production of clothing, leather shoes and related accessories. , sells self-produced products, etc., and is wholly owned by FRESH START.
Can be associated with Shanghai Aige Clothing Co., Ltd. Ten items of information on persons subject to execution and information on dishonest persons subject to execution. In addition, its legal representative Lu Yixun also received multiple consumption restriction orders, and all of its branches have been cancelled.
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