Shaoxing Haisa Textile And Garment Co.,Ltd , https://www.haisafashion.com
If the outdoor consumer market is viewed as a pyramid, Aigle from France stands at the top. But can Li Ning maintain its perseverance and endurance in a market still in its early development phase?
Li Ning made a strategic move in 2005 by divesting its Kappa brand, which was not performing well at the time, and instead partnered with Aigle International S.A. of France. Together, they formed Equao (China) Outdoor Sporting Goods Co., Ltd., each holding a 50% stake. The company aimed to bring Aigle’s outdoor products to the Chinese market.
Aigle, known for its high-quality technical clothing and footwear, had already gained popularity in France, especially for its iconic rubber boots. Celebrities like John Galliano and Marion Cotillard have been seen wearing them. In China, however, Aigle was still in its infancy—by 2005, it had only six counters and generated about 1 million euros in sales.
After the SARS outbreak in 2003, the outdoor market in China saw significant growth. Li Ning's decision to partner with Aigle was seen as a smart move, aiming to capture a niche but growing segment of consumers. At the time, there was optimism that Aigle could expand rapidly, with plans to open up to 500 stores within three years.
However, Aigle faced challenges. Its products were expensive, often costing more than competitors like The North Face, which limited its appeal. While the brand focused on style and design rather than just function, this approach didn’t always translate into strong sales.
Despite using Li Ning’s supply chain and distribution network, Aigle struggled to turn a profit. By 2007, it had not yet met its revenue targets. Some dealers were hesitant to stock Aigle due to high costs and low margins, leading to price cuts and even clearance sales online.
Today, Aigle has shifted its focus toward direct operations, prioritizing store quality over rapid expansion. While it has not achieved massive scale, the brand continues to build its presence in major cities through key retail locations. Zhang Jian, Aigle’s representative, believes the brand is still in the early stages of development and needs time to grow.
Looking ahead, Aigle aims to refine its positioning, focusing on both business travelers and leisure enthusiasts who value style and functionality. Li Ning, on the other hand, continues to develop its own outdoor line, targeting a broader audience without directly competing with Aigle.
The partnership between Li Ning and Aigle remains a long-term strategy, with both parties committed to building a strong brand presence in China. As Zhang Jian said, patience is key—this is a battle that will take time to win.