Our reporter Li Haoyue

　　On February 10, Yi Nian (Shanghai) Fashion Trading Co., Ltd. (hereinafter referred to as "E-Love China") publicly apologized for its products "because the cost of down jackets with a price of 1,500 yuan was only 75 yuan", and said that the person who was punished this time was punished. The main reason is that a style in the ELAND brand product was administratively punished by the Beijing Xicheng District Market Supervision and Administration Bureau because the ingredients did not meet the relevant standards.

　　Eland China is a wholly-owned subsidiary of South Korean fashion giant Eland Group in China.

Also a Korean company, Baijiahao (Shanghai) Fashion Co., Ltd. (hereinafter referred to as "Baijiahao"), a subsidiary of another Korean listed company TBH, has been acquired by Chinese company Antarctic E-commerce.

　　The industry believes that E-Land China's punishment and TBH's sale of its Chinese business (Baijiahao) are not only a sample of Korean fashion and apparel companies' localization in China, but also a microcosm of the changes in the "Korean Wave" Chinese market.

　　to pay off debt

　　All that can be sold

　　According to the data of Tianyancha App, on February 9, Baijiahao underwent a number of industrial and commercial changes. The original shareholder TBH HONG KONG LIMITED (hereinafter referred to as "TBH") withdrew and the new shareholder Antarctic E-commerce.

　　TBH entered China in 2004 relying on Baijiahao.

But in 2019, TBH announced plans to sell its China business and raise $200 million to reduce debt.

At that time, after TBH threw out its plan to sell its business in China, the stock price even soared nearly 30% against the backdrop of a net loss of 57.7 billion won in 2018.

　　In fact, in November 2021, Antarctic E-commerce announced that the company intends to acquire the ownership of TBH's Basic House and other trademarks in mainland China and 100% equity of Baijiahao, with a transaction price of about RMB 500 million.

So far, Antarctic E-commerce has successively included the Basic House, Mind Bridge, Jucy Judy and other brands operated by Baijiahao in China.

　　Compared with TBH, E-Land Group entered China earlier in 1994.

According to its Korean official website information, the company's apparel business is mainly concentrated in seven countries, with China accounting for the highest proportion.

According to the description, relying on the localization strategy in China, TBH has achieved a compound growth rate of 60% in the past 10 years and opened more than 3,000 stores.

　　Similar to TBH, in 2016, E-Land Group and E-Land China also sold their brand Teenie Weenie (hereinafter referred to as "TW") to the Chinese listed company Vignes (now renamed Jinhong Group), and its sale The same purpose is to "relieve debt pressure".

　　According to public information, as of the end of 2015, Eland Group had a total of 5.5 trillion won in debt, including 3.2 trillion won in short-term debt.

The sale of TW at that time generated 5.7 billion yuan (1 trillion won) in revenue for the company.

According to information on the E-Land Group China official website, TW once occupied the largest share of its Chinese revenue.

For example, in 2015, Eland China achieved revenue of 6.099 billion yuan, of which TW accounted for 34.42% of the company's main business revenue, and ELAND, which was punished this time, followed closely, accounting for 21.91% of Eland China's revenue at that time.

　　In addition, in 2019, E-Land Group sold the entire equity of E-Land Footwear USA Holdings to Chinese company Xtep International for US$260 million.

The company owns three global sports brands, K-Swiss, Palladium and Supra, as well as two sub-brands, PLDM and KR3W.

　　Times have changed

　　Quality control can't keep up

　　TBH and E-Lian Group were forced to sell or partially sell their business in China one after another, showing from one side that the Korean clothing that used to be like a duck to water in the Chinese market is no longer "popular". The cost of down jackets is only 75 yuan.” Represented by the decline in the quality of Korean clothing, or the lack of sincerity of related companies in China, it is the root cause of the sharp decline in Chinese consumers’ recognition of Korean clothing.

　　In fact, before being punished for not meeting the standards of ingredients, last year, SPAO, a brand of E-Lian China, was accused of falsely advertising a wool coat fabric and lining containing wool (actually 100% polyester fiber). The Shanghai Municipal Administration for Market Regulation imposed a fine of 200,000 yuan.

　　The "Securities Daily" reporter noticed that after the "down jacket with a price of 1,500 yuan costs only 75 yuan", a large number of consumers left messages on the official account of the ELAND brand Xiaohongshu to question the brand's serious decline in quality in recent years.

　　An analyst who did not want to be named told the "Securities Daily" reporter: "The growth and decline of Korean brands in China is inseparable from 'Korean Wave'. Twenty years ago, 'Korean Wave' drove Chinese consumers to Korean food. , clothing consumption, this stage is also the time when Korean clothing brands focus on entering China. 10 years ago, 'Korean Wave' triggered the Chinese people's pursuit of Korean cosmetics. However, cultural influence also fluctuates, and more careful management is required Maintenance. What's more, based on cultural self-confidence and the vigorous development of multiple industries, today's consumers have many choices in the Chinese market that can replace Korean products and even far surpass Korean products in terms of brand and cost performance. If the basic quality control cannot be guaranteed, then its development in China will only get narrower and narrower.” (Securities Daily)