A Distant And Friendly Brand.

It depends on its quality and steady development strategy.

At the beginning of the interview, the author put forward a broad question: what is the secret of Montagut's success in the Chinese market for many years?

Sir, the success comes down to two points: the quality of Montagut products and the strategy of steady development of enterprises.

"If we sum up Montagut with several elements, it is a French family enterprise that produces knitted products, and attaches great importance to quality.

Montagut was born in 1880, and began to open up overseas markets in 1960s, first in the Middle East, the United States, and then in Asia, Japan, Korea, Singapore, China and so on.

Its success comes first from quality, which is what Montagut has been doing in Europe for a long time.

Consumers are smart. They will compare the quality of the products. The same T-shirts will be deformed and faded after washing, which are their concerns. Our unique bright wire technology is very good in these aspects.

The second is our steady development strategy, because Montagut is a family business, more traditional and robust, unlike some listed companies' clothing brands, under the pressure of investors, excessive pursuit of profits and rapid expansion, thus ignoring the requirements for quality.

We do not pursue speed, but focus on long-term development and cooperation.

If there is any business philosophy, this is our business philosophy.

China is not a market, but a lot of markets.

25 years of China's road has made Montagut more qualified to comment on the development path of an international brand after entering the domestic market.

"We have been exploring, understanding and adapting to the Chinese market. The Chinese market is too big. For us, China is not a" one "market, but rather a lot of markets, from the south to the north, from the coastal areas to the mainland.

People's cultural background, economic status and aesthetic concept are very different. We can't deal with the whole Chinese market in a way, and it is even more impossible to copy our business philosophy in Europe.

Mr. Yan Nord then introduced the evolution of Montagut in the Chinese market: "an interesting phenomenon is that when we entered the Japanese market, it was a brand of women, and when entering the Chinese market, it was completely a male brand image.

Because in 1979, China's reform and opening up to the outside world, the demand for designer clothes was mainly concentrated on male consumers in big cities, so 100% of the products we launched in China were men's.

With the development of society, our female products have begun to increase. Today, it has accounted for about 20%, and the cosmetics of Montagut series will soon be on the market.

On the other hand, when we first entered the Chinese mainland market, we only sold in big cities like Guangzhou, Beijing and Shanghai. Now, we have already entered many small and medium-sized cities, because the consumption ability of Chinese customers has improved.

Our designers come to China every year to directly touch the Chinese market and design products that meet the needs of Chinese customers.

For example, we have added many sparkling ornaments and metallic luster elements to the design of the buckle, which is not in the European style, but is in line with the taste of Chinese consumers.

We welcome competition, but not compete with counterfeit products.

With the massive entry of international brands

The competition and challenges facing Montagut are undoubtedly huge, at least not a few years ago, one of the limited international brands in the mind of the Chinese people.

Mr. Nord expressed an open and welcome attitude toward competition: "competition is a good thing. We welcome competition and yearn for competition.

Montagut's products now involve many areas, which can be said in addition to bright wire products in other fields.

We all have strong competitors. We respect every competitor and learn from them.

Of course, oral attention is not a problem. Montagut's advertising and publicity efforts in the Chinese market have proved their active participation in competition.

It is understood that Montagut's annual investment in Montagut brand market distribution and promotion costs of not less than HK $20 million, and they will gain 3% to 5% of the profits in the Chinese market for the promotion of products, every year in Shanghai, Beijing and other places for fashion distribution, to open up and occupy the mainland market.

Montagut has adopted a comprehensive advertising approach. Montagut ads can be seen in more than 20 TV stations, print media and outdoor light boxes, including CCTV.

This year, Montagut will also sponsor a large number of Olympic Games as a sponsor of the Olympic Games.

"Asia is the most important market for Montagut in overseas, and China is Montagut's most important market in Asia."

Mr. Yan Nord commented on the importance of the Chinese market for Montagut.

However, the long history in China has also brought many counterfeit counterfeit products to Montagut. Up to now, Montagut and Esprit Far East Limited have lodge a lawsuit against more than 40 companies in Hongkong, accusing them of infringing their exclusive right to use registered trademarks.

In early 2004, Montagut just won a trademark lawsuit in Shanghai and was awarded a compensation of 500 thousand yuan.

Mr. Yan Nord talked about the problem of counterfeit products: "we welcome competition, but we do not compete with counterfeit products.

We are resolutely opposed to counterfeit products and take a series of measures to resist and guard against it.

Speaking of this, Mr. Yan Nord showed the latest anti-counterfeiting mark to reporters. Every Montagut product will have a certificate of anti-counterfeiting in the future, and the euro technology will be used. At the same time, Montagut will also set up a telephone authentication hotline for anti-counterfeiting codes to help consumers identify counterfeit Montagut products. "Mr. Nord"

"We also want to thank the Chinese government for their work in fighting counterfeit products and have made great progress.

Of course, this is not a complete success overnight. As with our brand development, the fight against counterfeit products needs to be progressively step-by-step.

Choosing partners is the key to franchising.

Since 2000, Montagut has adjusted its development strategy in the Chinese market, withdrawing all its production and distribution rights in the Chinese market and embarked on the road of franchising.

Distributors and retailers of all Montagut products need direct authorization from Montagut Esprit Far East Limited to sell Montagut brand products.

So far, Montagut's cashmere sweater, leather belt, bedding, socks and underwear, children's wear, make-up and body beauty products have found the general agent in China.

In the retail sector, Montagut has set up more than 2500 outlets in the country and has opened 17 flagship stores.

Talking about the concept of franchising, Mr. Yan Nord seems to have great experience: "when we select partners, we have a particular interest in their experience and influence in this field. The general agents we choose are leading enterprises in related fields.

For example, our cashmere sweater has chosen the famous spring bamboo enterprise in China as the general agent, and our leather agent is also a Taiwan company with rich experience in leather agent.

The minimum sales guarantee policy is adopted in the form of franchise, and the royalty is paid in excess.

Montagut is responsible for advertising, training and product design. "

The close and harmonious cooperation between the company and its agents is the key to success.

For this point, Mr. Yan made an image analogy with marriage: "franchising is like a marriage. From different regions, two parties with different cultural backgrounds come together. In the process of cooperation, contradictions and conflicts are inevitable. They need contracts and understanding, flexibility and mutual benefit. In the interests of each other, let the other side make a profit, not just to maximize their own interests." Nord

If the bride or groom is too greedy, the marriage is bound to fail. "

The reporter then asked him if he had any suggestions for new investors to choose their own brands or join the franchise industry. Mr. Yan Nord did not hesitate to recommend the latter: "for new investors without industry experience, joining franchising is undoubtedly a shortcut. They do not need to open their own factories. Relatively small investments can get a greater return. After accumulating the experience of this industry, familiarize themselves with the market and establish a sales channel for products, it is not too late to create their own brand.

However, choosing the right partners is the key to franchising.

Some enterprises are expanding rapidly for profits, and only collect fees. For franchisees, apart from brands, almost nothing is provided.

Joining such an enterprise is hard to learn.

The choice of an enterprise like Montagut can not only learn the business philosophy of an enterprise, but also be supported by advertising, training, design and so on, which will be beneficial to the development of the same field in the future.

After all, we are a family business. We are concerned about long-term cooperation rather than short-term interests. "

Mr. Nord took the opportunity to publicize Montagut. However, apart from the brand, his advice is of great value to investors who are preparing to enter the franchise industry.