E-Land
Encyclopedia
E.Land Group is a South Korea
n conglomerate headquartered in Chanjeon-dong Mapo-gu Seoul
, Korea
. It started as a 6 sqm small clothing shop on a fashion street in front of Ewha University in Sinchon
in 1980. E.Land Group become a USD 7 billion group of companies, creating the phrase "Myth of 6 sqm (hangul
:2평의 신화)". E.Land Group now takes part in retail malls, restaurants, hotels and construction businesses as well as its cornerstone, fashion apparel business. It has operations worldwide through its subsidiary E-Land World, including China
, India
, Sri Lanka
, Vietnam
, the United States
and Europe
(England, Italy).
system. Franchising system is one of the most profitable forms of retail distribution due to its low initial investment requirement when opening new stores. Its first ever brand was called "England", which later changed to "E-Land" due to restrictions on trademark registration.
During the Asian financial crisis of 1997, E.Land Group successfully carried out several corporate reform initiatives, including corporate restructuring, overhaul of its finances and transformation of its management system. As a result, E.Land Group became the 37th largest corporation in Korea (excluding SOE
's) with assets totalling over 2 billion USD as of the end of 2005.
E.Land Group transformed Korean apparel retailing, which was historically divided into high-priced department stores and low-priced traditional markets, by creating a new medium-priced market using street shops. This market has now grown to over USD 20 billion in 2006.
E.Land Group currently takes part in fashion apparel, hypermart retail, fashion outlet malls, department stores, hotels and restaurant businesses.
of production and distribution of consumer goods that include apparel, groceries and housewares. Products are sold through two different channels, namely, approximately 5,000 franchise stores and E.Land Group owned stores consisting of 25 premium fashion discount stores, two department stores and 32 discount stores.
The strength of E.Land Group lies in its ability to generate synergies between its fashion and retail businesses, and this strategy being implemented through a business portfolio that includes infant wear, children's wear, women's wear, sports wear and underwear and a multitude of channels such as outlets, department stores and super supermarkets.
The Group's current retail business comprises Homever, Kims Club, NC Department Store, NewCore Outlet and 2001 Outlet.
which operated 32 discount stores. Carrefour Korea, despite its global presence and experiences overseas, struggled to understand the local Korean culture. Carrefour was rebranded to Homever by E.Land Group after the acquisition.
The acquisition moved E.Land Group from 6th to 2nd largest discount/outlet operators with respect to total number of stores.
Using experiences accumulated from prior operations of 2001 Outlet and NewCore Outlet, E.Land Group successfully integrated its winning strategy to revive the stores after the acquisition.
During 2007, E-Land received media attention regarding new Korean non-regular protection laws. E-land laid off more than 900 non-regular female cashiers at its affiliate retailers, Homever and New Core, just before the law went into effect on July 1 2007. The group, instead, outsourced their jobs to workers from temporary agencies. The new law requires a company to grant its non-regular employees regular status after they have worked with the company for two years.http://www.hani.co.kr/arti/english_edition/e_national/222034.html
On 14 May 2008, the British retail group Tesco
, which already operated in Korea, agreed to purchase 36 hypermarkets with a combination of food and non-food products from E-Land for $1.9 billion (976 million pounds) in its biggest single acquisition, making Tesco the second largest retailer in the country. The majority of the E-Land stores formerly belonged to French retailer Carrefour
before 2006 and most of the stores will be converted to Tesco Homeplus outlets. Tesco's South Korean discount store chain, Home Plus, currently has 66 outlets.
Casual
Deco & Netishion (Women's)
Women, kids, underwear and accessories
Eland also operate the following global brands under license
permeates the organisation, encouraging the generation of new ideas and sharing of best practices. E.Land's Knowledge Management network is superior to that of many leading global companies and therefore is constantly benchmarked by others.
E.Land Group has been recognised for best practices in their area by Forbes, Booz Allen and Harvard Business Review:
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
n conglomerate headquartered in Chanjeon-dong Mapo-gu Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
, Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...
. It started as a 6 sqm small clothing shop on a fashion street in front of Ewha University in Sinchon
Sinchon
Sinchon or Sinchon-dong is a neighbourhood and a judicial dong in Seodaemun-gu in Seoul, South Korea....
in 1980. E.Land Group become a USD 7 billion group of companies, creating the phrase "Myth of 6 sqm (hangul
Hangul
Hangul,Pronounced or ; Korean: 한글 Hangeul/Han'gŭl or 조선글 Chosŏn'gŭl/Joseongeul the Korean alphabet, is the native alphabet of the Korean language. It is a separate script from Hanja, the logographic Chinese characters which are also sometimes used to write Korean...
:2평의 신화)". E.Land Group now takes part in retail malls, restaurants, hotels and construction businesses as well as its cornerstone, fashion apparel business. It has operations worldwide through its subsidiary E-Land World, including China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
, Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
(England, Italy).
History
In the 1980s, E.Land Group revolutionised the retail channel by pioneering new markets using a franchisingFranchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
system. Franchising system is one of the most profitable forms of retail distribution due to its low initial investment requirement when opening new stores. Its first ever brand was called "England", which later changed to "E-Land" due to restrictions on trademark registration.
During the Asian financial crisis of 1997, E.Land Group successfully carried out several corporate reform initiatives, including corporate restructuring, overhaul of its finances and transformation of its management system. As a result, E.Land Group became the 37th largest corporation in Korea (excluding SOE
SOE
- Organizations :* Special Operations Executive, a British World War II covert military organisation* State-owned enterprise, a government-owned business* Sega of Europe, a computer game developer* Sony Online Entertainment, a computer game developer...
's) with assets totalling over 2 billion USD as of the end of 2005.
E.Land Group transformed Korean apparel retailing, which was historically divided into high-priced department stores and low-priced traditional markets, by creating a new medium-priced market using street shops. This market has now grown to over USD 20 billion in 2006.
E.Land Group currently takes part in fashion apparel, hypermart retail, fashion outlet malls, department stores, hotels and restaurant businesses.
Vertical Integration
It currently focuses on vertical integrationVertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
of production and distribution of consumer goods that include apparel, groceries and housewares. Products are sold through two different channels, namely, approximately 5,000 franchise stores and E.Land Group owned stores consisting of 25 premium fashion discount stores, two department stores and 32 discount stores.
The strength of E.Land Group lies in its ability to generate synergies between its fashion and retail businesses, and this strategy being implemented through a business portfolio that includes infant wear, children's wear, women's wear, sports wear and underwear and a multitude of channels such as outlets, department stores and super supermarkets.
Retail
E.Land Group is currently the second largest retailer in Korea based on number of stores as of September 2006 (Source: Korea Rating).The Group's current retail business comprises Homever, Kims Club, NC Department Store, NewCore Outlet and 2001 Outlet.
2001 Outlet
In 1994, E.Land Group introduced the first outlet in Korean market by opening the first store of 2001 Outlet. It took a form of multi story outlet stores with groceries, houseware and apparel.NC Department Store & NewCore Outlet
In 2003, E.Land Group purchased a 75% stake in NewCore, a department store operating in 25 different locations in Korea. Following the acquisition, NewCore was transformed to and operated as two department stores and 15 fashion premium outlets.Homever (ex. Carrefour)
In April 2006, E.Land Group acquired the entire South Korean operations of CarrefourCarrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
which operated 32 discount stores. Carrefour Korea, despite its global presence and experiences overseas, struggled to understand the local Korean culture. Carrefour was rebranded to Homever by E.Land Group after the acquisition.
The acquisition moved E.Land Group from 6th to 2nd largest discount/outlet operators with respect to total number of stores.
Using experiences accumulated from prior operations of 2001 Outlet and NewCore Outlet, E.Land Group successfully integrated its winning strategy to revive the stores after the acquisition.
During 2007, E-Land received media attention regarding new Korean non-regular protection laws. E-land laid off more than 900 non-regular female cashiers at its affiliate retailers, Homever and New Core, just before the law went into effect on July 1 2007. The group, instead, outsourced their jobs to workers from temporary agencies. The new law requires a company to grant its non-regular employees regular status after they have worked with the company for two years.http://www.hani.co.kr/arti/english_edition/e_national/222034.html
On 14 May 2008, the British retail group Tesco
Tesco
Tesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
, which already operated in Korea, agreed to purchase 36 hypermarkets with a combination of food and non-food products from E-Land for $1.9 billion (976 million pounds) in its biggest single acquisition, making Tesco the second largest retailer in the country. The majority of the E-Land stores formerly belonged to French retailer Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
before 2006 and most of the stores will be converted to Tesco Homeplus outlets. Tesco's South Korean discount store chain, Home Plus, currently has 66 outlets.
Apparel brands
E.Land Group owns in excess of 60 brands in Korea.Casual
- Brenntano
- Underwood
- Hunt
- R.Athletic
- Teenie Weenie
- Who.A.U
- Shane Jeans
- So Basic
- There's
- Coin
- C.o.a.x
- Prich
- G-Star
Deco & Netishion (Women's)
- Deco
- Ana Capri
- Telegraph
- XIX
- Dia
- EnC
- 96 New York
- A6
Women, kids, underwear and accessories
- E-Land Junior
- Underwood School
- Ohoo
- Little Brenn
- Roem Girls
- The Day Girl
- Cocorita
- Usall
- New Golden
- Hunt Kids
- Caps
- Vianni Kids
- Cheek
- Entetee
- Celden
- Hunt Innerwear
- The Day Underwear
- Eblin
- Petit Lin
- Body Pop
- Roem
- The Day
- 2Me
- Teresia
- Fiorucci
- Clovis
- Lloyd
- Clue
- Vianni
- Eco Mart
- Paw in Paw
- OIX
- Vicman
- OIX Milano
- NIX21
- Marie Claire
- OST
- Beall
Eland also operate the following global brands under license
- Berghaus
- Ellesse
Restaurant
- Ashley: A New England-style family restaurant that targets women customers. Its buffet style salad bar features 50+ different menus.
- Rimini: An Italian restaurant that mainly serves pasta in an Italian-style interior setting.
- Pizza Mall: An Italian style pizza bar which was the first major restaurant chain in Korea to sell pizza at under 10,000 won (about $10 US) at the time of its launch in 1994.
Knowledge Management
Knowledge ManagementKnowledge management
Knowledge management comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences...
permeates the organisation, encouraging the generation of new ideas and sharing of best practices. E.Land's Knowledge Management network is superior to that of many leading global companies and therefore is constantly benchmarked by others.
E.Land Group has been recognised for best practices in their area by Forbes, Booz Allen and Harvard Business Review:
- 2004: The Best Practice in Knowledge Management by Forbes
- 2005: Featured Harvard Business Review Case Study - The Right Stuff
- 2005: Used by SAP as a successful implementation case study for their ERP system