When I was in early teenager, E-land TV commercial often seen at golden hour and their brand was so strongly appealed to my peers. So, I ever wanted to buy clothing like E-land which was very popular and famous brand. Actually it was a synonym for high-quality fashionable and has competitively low price.
Now, if my mom buys me the clothes, I would never happy with it. It’s like old fashion’s brand which mean’s they lost brand power. So it was not a news when I heard that some of their brand like HUNT has been expelled. The HUNT (dismissed brand), twenty year old brand, it was very popular and major brand. So everyone knew the brand – maybe you too have one or two of this brand clothes in your wardrobe). But they failed to be innovated at maturity level. As every product has its life cycle and if the product arrives at the stage, they don’t have much choice. Innovate the product, differentiate and drawing another product life cycle or die (go decline stage).
‘HUNT’ was the one of most powerful brand they ever had. It marked one-billion dollar of turnovers worth a year in doing business until mid 90’s. However, competition in the casual brand market was getting stronger from 2000’s. So E-land retargets the market segment from early twenties to late twenties and thirty’s semi-formal suit (which is more convenience than suit) who are used to their brand. But it was too late. They expelled ‘HUNT’.
But there’s news that E-land shows a great performance in China. Turnover worth of business last year in China was 3.5 billion dollars and their approximate annum worth this year is 5 billion. Average growth rate in past seven years was 79% and annual profit increased average 63% every year. Rules of E-lands success was planting luxurious brand image. The reason they could make great success in China is they never exposes their previous brand image in Korea. All their brands have own brand image. One of brand of E-lands is ‘SCOFIELD’. Its formal suit cost 700 dollars (average salary of business person who are just graduate from university is 300 dollars). But this brand’s annual turnover worth last year marked on highest place above other luxurious brand like Boss, Luisvitton 'Babaean department store'.
When I analyze this case with BCG graph, we can see that during other E-Land brands in Korea working for CASH COW, they invest the money for R&D toward another WILD CAT brand like WHO.A.U and SCOFIELD. When they successfully move to STAR square, they withdraws their brand which is old and moving to DOGS. Also, we can apply this to product lifecycle graph. Before their brands like HUNT begin declines, they introduce new brand with different target segment. So E-Land could extend its company lifecycle.
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