South Korea’s E-Land Group completes US shoe business exit
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South Korean conglomerate E-Land Group is pulling its OTZ Shoes brand from the US market, six years after buying it.
E-land Group, through its subsidiary E-Land USA Holdings, bought the California-based OTZ Shoes at US$8.5 million in 2013. But now, the conglomerate has decided to withdraw the brand from the country and develop it in South Korea instead, completing its exit from the US footwear market.
OTZ will be marketed as a private brand in South Korea by its fashion unit E-Land World and will be sold at its multi-shoe brand store Folder. The brand is aimed at catering to young customers aged 15 to 25.
Aside from growing the brand at home, E-Land Group says it plans to boost its sales overseas to achieve its target of 50 billion won (US$43 million) sales annually.
E-Land Group sold its subsidiary E-Land Footwear, which owns brands K-Swiss, Palladium, Supra, PLDM and KR3W, to Chinese sportswear company Xtep International Holdings for US$260 million three months ago.
E-Land Group is Korea’s largest integrated fashion and retail company, owning around 250 brands and operating more than 10,000 stores worldwide.
Questions & Answers
Q.Why did E-Land Group decide to pull OTZ Shoes from the US market?
Why did E-Land Group decide to pull OTZ Shoes from the US market?
The conglomerate decided to withdraw the brand from the US to develop it in South Korea instead. This move completes E-Land Group's exit from the US footwear market, focusing on its home territory for the brand's growth.
Q.How will OTZ Shoes be marketed and sold in South Korea?
How will OTZ Shoes be marketed and sold in South Korea?
OTZ Shoes will be marketed as a private brand by E-Land Group's fashion unit, E-Land World. It will be sold specifically at E-Land's multi-shoe brand store, Folder, targeting young customers aged 15 to 25.
Q.What is E-Land Group's sales target for OTZ Shoes?
What is E-Land Group's sales target for OTZ Shoes?
E-Land Group plans to achieve an annual sales target of 50 billion won for OTZ Shoes. This includes growing the brand domestically in South Korea and boosting its sales overseas as part of their strategy.
Q.Which brands did E-Land Group sell prior to exiting the US footwear market?
Which brands did E-Land Group sell prior to exiting the US footwear market?
Three months ago, E-Land Group sold its subsidiary E-Land Footwear to Chinese company Xtep International Holdings. This sale included brands such as K-Swiss, Palladium, Supra, PLDM, and KR3W, for US$260 million.
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