Montagut's channel transformation wants to rebuild high-end brand image

French Montagut, who once represented the trend of luxury clothing, has long since faded into the ranks of luxury brands in the Chinese market. Montagut China’s chief financial officer, Clement Masse, said today in Shanghai that Montagut’s ongoing channel transformation has shifted from wholesale to direct operations and franchise stores to rebuild the high-end image of the brand.

Channel change

"Twenty years ago, China's sales form was based on wholesale, but it is not suitable now. It is now an era of franchise," said Clement Masse.

Montagut is one of the first luxury brands to enter China 30 years ago. It is known worldwide for its "bright silk" T-shirt. In 1999, Montagut established liaison offices in Beijing, Shanghai, Chengdu and Guangzhou, China, and established two regional agents in Jiangsu Province and Guangdong Province to represent and distribute all of Montagut's domestic clothing collections. Montagut began to strictly select high-quality licensees in China to produce Montagut franchised products.

2010 Montagut's new spring and summer debut

With LV, Armani, and more and more world top brands entering China, Montagut has gradually faded out of the ranks of first-tier luxury brands. Since 2006, Montagut has gradually withdrawn its agency rights in China and has opened a large number of its own sales outlets in first and second-tier cities.

Pierre Gros, chairman of Montagut Group, once said that the reason for the large-scale withdrawal of department stores and other large distribution channels is because this model has started to distort the brand. “The future of the brand depends on high-end quality and high-end design, and it cannot rely on it. With price advantages, only by having its own channels and directly facing consumers, can we ensure brand management and customer service."

Last year, Pierre Gros revealed that at present, Montagut's own stores have changed from the first 3 to 20, and will soon open to 50.

Montagut now has more than 3,000 sales outlets in all parts of the country, and Montagut is integrating these points of sale. “Before it was sold to agents, there was no unified brand image. Now we have a unified store image and management for all existing stores, and then we will rigorously select franchisees to expand,” said Clement Masse.

As Pierre Cardin enters the Chinese market at the same time as Montagut, the first entrants did not laugh at the end. Because of the frantic release of franchise permits, the full street was Pierre Cardin's shoes and hats, and the brand image instantly collapsed. Finally sold to Chinese companies. In order not to repeat the mistakes of Pierre Cardin, Clement Masse told NetEase Finance that Montagut will strictly manage the franchise stores, and the company will use the information background to understand the store sales and inventory situation and conduct systematic management.

Reshape the image

Montagut once gave the impression that "the old man's wardrobe" was the first French brand to enter China. In order to attract more consumer groups, it also started to launch leisure series and women's wear series. "Monterey wants to change brand strategy, it is no longer The image of the old man represents," said Candice Meyer, Montagut's brand image and communications manager.

In addition to launching a new series of new clothes, Montagut also began selling jewelry to make its products more diversified. A senior personage in the clothing industry said that the jewelry's profit rate is higher than that of clothing, and many brands use jewelry to improve their profitability.

Montagut’s flagship stores in China are located in Hong Kong, Macau, Beijing and Guangzhou respectively, but they lack the city’s fashion center. Candice Meyer said that Shanghai is very important, Montagut does not rule out the opening of flagship stores in Shanghai, but can not reveal the relevant details.

Although Montagut's status as a first-tier city is not as good as that of other top brands, it is undeniable that Montagut has a first-mover advantage in the Chinese market. When LVs compete in first-tier cities, Montagut’s sales network has spread all over China. The second and third tier cities, and the wealthy class of second and third tier cities in China, still agree with Montagut, a French brand. “When the first-tier cities cannot compete with top brands, it is also wise to deepen the second and third tier cities and ensure broad and stable profitability,” said the clothing industry source.

However, Montagut’s top executives are reluctant to talk openly about their development strategy in the first, second and third tier cities, and they are unwilling to acknowledge pressure from competitors.