Eden Park wants to make a name in China
Eden Park, the famous French brand founded by Franck Mesnel (the major shareholder) and Eric White has decided to make business in China. Created in 1987, the Eden Park brand today has a turnover of 59 million euros spread over 39 countries. It is important to add that 20% of the turnover is generated outside France.
The brand with a pink bowtie is mainly known for its rugby jersey. However, the founders are aware that its main attraction in China lies more in its added value “Made in France” and “Designed in Paris” than in its rugby inspiration. Franck Mesnel was thinking of selling both shirts and polo shirts as streetwear and formal dresses.
A strong association
The Chinese challenge is a timely boost for the brand, whose sales have been stagnant for the past three years. Eden Park so would double its sales within five years by opening 89 stores in China, including six in Shanghai and Beijing (this year). The joint venture is today based in Hong Kong.
To talk about joint ventures, we have to necessarily talk about the partner. Eden Park has chosen to join the giant Taiwanese Ruentex (created in 1973). Ruentex is already partnered with other premium brands (Nautica etc.). Ruentex has a good experience and knowledge for the proper development of the brand in the Chinese territory. It can easily offer strategic locations in major shopping centers.
Importance of joint venture
The association with a local partner is a way to ensure a good brand development activity. The credibility and influence of the Chinese partner are evaluated according to their experience, financial resources, the position he holds in his sector, stability and ability to act. As an association, a joint venture abroad has many advantages. This allows the pooling of resources and knowledge, reducing risk in foreign territory, expanding its network and gaining some legitimacy in the country invested. This strategic choice will really accelerate international development. The partner will guide the company in its choice of locations (shop, business and headquarter), distribution channels, and marketing strategy. Besides, the partner will enable negotiations with various local actors.
A bright future
The conquest of China is a milestone in the full integration of Eden Park. The key factor of success for a foreign company in China is the international scene. It will allow the brand to rebound and grow even more in the Scandinavian countries, Russia, or the United States. Franck Mesnel’s objective is to achieve 50% of its turnover abroad within 5 years.