French garments a perfect fit for China (hktdc.com)


	Elodie Gros is the fifth generation of France's Montagut family to leverage the opportunities Hong Kong offers

A French clothing company run by a family for five generations has found a strong niche in the Chinese market. Montagut's ties to Hong Kong and the Chinese mainland go back nearly 40 years when it started out as a small enterprise, only to grow quickly when business in the mainland took off.

"When we first set up in Hong Kong in the 1970s, we already knew we wanted to expand in China and we wanted to use Hong Kong as a platform," said Elodie Gros, Montagut's Brand Image Manager. Ms Gros is part of the fifth-generation to run the business. "When my grandfather came to set up the company in Hong Kong in 1971, he could sense a huge opportunity in this market. He loved that Hong Kong was the centre of Asia and an international platform. As a gateway to Asia, it was a wonderful setting and place to set up a private business." Montagut broke into the mainland market in the 1980s and expanded rapidly in the 1990s. It now has points-of-sales in every province in the mainland.

Montagut started in 1880 as a family-run silk yarn factory in the Auzene Valley at St Sauveur de Montagut, initially producing lingerie and silk stockings. In 1962, Ms Gros' grandfather came up with a patented fabric called Fil Lumiere, a bright and shiny yarn, which is strong and elastic. The signature material, used in many of its knitwear and polo-shirt lines, has proved to be a hit in the mainland market because of its adaptability to hot and humid weather. The material continues to be manufactured in France. "It's successful because of the quality. You can keep it for many years without alteration. Chinese customers like it for that: it looks precious, silky and soft, a bit like Chinese silk."

Efficient logistics

While Montagut's main customer base in Asia is in the mainland, Ms Gros said everything has always been managed from Hong Kong because of the city's top-notch infrastructure. "Shipping merchandise is really easy and fast to do in Hong Kong. Time is very precious in our business, so we really need an effective logistics system."

And with business still expanding, Montagut has set up mainland regional offices, including its newest mainland headquarters in Guangzhou. "We need to be closer to the market for sales and operations. But we still need to control everything from Hong Kong," from where the marketing team serves as the "brain" of the company.

Montagut, whose market is the mainland's growing middle class, is launching a new collection this coming fall-winter season, targeting the younger set. "China is a really good test market because of the scale of it and because customers change very rapidly. It's a very dynamic market. The younger people are very eager to learn about new brands. They want to try many different things and express their own personality. This generation of customers is making fashion change very fast."

Window to China

In a bid to have greater control of its Greater China business, the company opened four flagship stores in Beijing, Guangzhou, Macau and Hong Kong. "Flagship stores always serve as the model shop, where you try new things, get more insight and get quicker feedback from customers. We get a lot of marketing information through this channel.

"It's very important for us to be successful in Hong Kong because it's a window to China. It's the premier tourist destination and that's the reason we opened a flagship store in Hong Kong two years ago."