[Exclusive] E-Land Retail Withdraws 9 Children's Apparel PB Brands... Closing Store Operations

9 out of 17 Children's Clothing Brand Stores Cease Operations
Structural Reorganization for Business Efficiency Post-COVID-19
Launch of Online Platform and Transition to Online Brands

E-Land Retail Cocorita X Sioufit Collaboration Product.

[Asia Economy Reporter Lee Seon-ae] E-Land Retail, the distribution business corporation of E-Land Group, is discontinuing the offline (store) operations of its children's clothing PB (private brand) brands. This decision comes from the judgment that a business structure reorganization is necessary to efficiently manage post-COVID-19 operations.

According to E-Land Group on the 24th, E-Land Retail will cease offline operations of 9 out of 17 children's clothing PB brands sold at directly operated retail stores such as NewCore Outlet and Icheonil Outlet. However, the group clarified that while they are withdrawing from physical stores, they are not completely shutting down the brands. E-Land Group stated, "It is true that we are discontinuing offline operations, but since we may utilize the brands in the future, we plan to retain the brands themselves."

E-Land Retail acquired the children's clothing business from E-Land World's fashion business corporation in 2017. Previously operating 7 children's clothing PB brands with annual sales of 150 billion KRW, E-Land Retail expanded by acquiring the children's clothing business segment of E-Land World, which operates 9 brands including Roem Girls, Yusol, and Cocorita, generating annual sales of 240 billion KRW. This acquisition propelled E-Land Retail to become the company with the largest number of brands and highest sales scale in the domestic children's clothing sector.

Unlike adult clothing, which is mainly operated in large stores, children's clothing is characterized by being operated primarily in medium and small-sized stores. The deal was made based on the judgment that having multiple children's clothing brands simultaneously located within E-Land Retail's stores would not only increase customer attraction but also facilitate easier expansion. Since then, through brand launches, the number of children's clothing brands currently operated has reached 17.

However, after experiencing the COVID-19 crisis, E-Land Group decided that a business structure reorganization was necessary and chose to focus on strengthening online platforms. They plan to actively restructure the business around online channels, including launching an online children's clothing platform and converting existing offline brands into online-exclusive brands. On this day, they took the first step toward leading the online children's fashion market by launching the online children's lifestyle select shop 'KiddyKiddy.' Through this, E-Land Retail aims to increase its market share in the online children's clothing market and properly prepare for future growth by improving the business division's structure.

E-Land Kidikidi.

Meanwhile, the 9 brands to be withdrawn have not been finalized. E-Land Group stated, "Since coordination with each business division is necessary, the final decision has not been made, so it is difficult to disclose the brand names at this time."

Concerns about restructuring affecting employees responsible for operating the withdrawing brands were raised, but E-Land Group drew a clear line, stating there will be no forced layoffs. E-Land Group explained, "Employees who were responsible for operating the existing brands will transition to internal business division roles such as V-commerce, media commerce, online MD, and online sales through necessary job training, competency enhancement processes, and internal recruitment."

This content was produced with the assistance of AI translation services.