ENG: How the Chinese concept store attracts customers in times of crisis

Young fashion retailers, such as the Chinese concept store ENG, are managing to attract customers worldwide despite the difficult economic situation. They offer a product range and shopping experience that is not only attractive to local customers, but also has its finger on the pulse internationally.

In the bricks-and-mortar retail sector of China, conceptual stores and young brands create a special shopping experience. In addition to a range of trend-setting labels - from GmbH to Juun.J - visitors are attracted by huge installations and innovative shop design, turning them into loyal customers. Meanwhile, the avant-garde brand mix with international brands such as Rick Owens and exciting local discoveries also attracts customers worldwide.

The ENG concept store began with one shop opened shortly before the pandemic, and is now represented in the ‘most important cities’ in China. It is defying China's faltering economic growth, with luxury groups such as LVMH and Kering even feeling the effects of subdued consumer spending. On November 11, the upcoming Singles' Day, which is considered the biggest online shopping day and attracts shoppers with offers and exclusive collections, is an important indicator of demand in this sector.

In this interview, buying director Laura Darmon looks ahead to the upcoming shopping event, provides insights into trends that inspire Chinese consumers and how ENG is dealing with the economic developments. She has been with ENG since October 2020 and previously worked for the Chinese brand Didu in business development and wholesale as well as for the French concept store L'Insane.

What did you take away from the SS25 season?

I found this season to be much cleaner and more refreshing, with each brand focusing on their core strengths. It can be challenging to resist external trends when building a collection, but I felt that SS25 emphasised core garments over fleeting trends, which I really appreciate.

We're also moving away from logo mania, which is a welcome change after seeing it dominate for so long. I’m excited about oversized pieces as well as well-tailored options featuring good patterns and comfortable fabrics that prioritise everyday wear.

Which fashion weeks and trade fairs did you attend?

I usually go mostly to Milan and Paris, but recently, I’ve started attending London Fashion Week as well, and of course, Shanghai Fashion Week.

In terms of trade fairs, this season in China, Collective 6 made a strong impression by teaming up with On Time, one of the largest trade shows in Shanghai. Collective 6 is an independent group of six to seven top emerging designers—including Didu, Yueqiqi, Ximon Lee, Untitlab, and Karmuel Young—who are standing together to challenge the traditional wholesale system. It’s an exciting movement.

Did one event stand out in particular?

I liked the Ximon Lee runway show hosted by Collective HEIM, which I have a personal affection for. The simple setup emphasised the garments, with an elevated stage that brought the audience close, reminiscent of the old Margiela shows. This design allowed the focus to be entirely on the clothing, minimising distractions from the surrounding environment.

Have you discovered any new brands that you would like to include in your portfolio?

I really liked Hodakova this season; it was stronger than before. After winning the LVMH prize, they’ve likely improved their craftsmanship and overall quality.

While not a new discovery, I feel that Our Legacy aligns perfectly with what the Chinese audience desires today. It’s a brand that offers designs I personally like a lot.

Which pieces are currently doing well at ENG?

It can be challenging to scale because we represent various brands, each with unique category strengths and design elements. However, knitwear, jersey, denim are strong areas for us. Currently, pants, tops, pullovers and polos are performing well, and we're seeing a positive trend in jackets as the weather gets colder.

Which trends will inspire the Chinese public in the upcoming summer?

I’ve noticed the corporate and intellectual trend driven by Miu Miu is still totally on and I’ve also felt the growing influence of Korean fashion on the Chinese audience.

Brands like Open YY have found a receptive audience this season. The latest Shushu Tong runway showcased this shift perfectly. We’re seeing a rising appetite for more minimalistic brands; people seem to be moving away from streetwear and bold prints, focusing instead on well-cut garments made from quality fabrics and tailored pieces.

Local brands seem to be becoming increasingly popular, especially with a younger Chinese target group.…

The younger audience takes pride in their local designers and are eager to support them, as these designers understand the importance of building a community alongside their brand image and merchandising.

What role do Chinese brands play for ENG?

Supporting emerging designers from Asia has been a core value for us since day one, specifically being a China-based store. We’ve undertaken many exclusive collaborations with designers such as Didu and Rui Zhou, and we were one of the first stores to retail Windowsen in China.

Consumer behaviour in the Chinese luxury segment is currently subdued. Do you also notice this among your customers?

I see this not only in the fashion industry but also in food, art, and real estate—all of these sectors are facing challenges due to the current economic climate. However, we’ve worked hard to build a community among our customers. By presenting exclusive products and focusing on storytelling and education about the brands we carry, we’re pushing boundaries on a marketing perspective. We invest significant time and analysis into understanding what our audience wants to see.

What role does the upcoming Single's Day play for ENG?

Singles' Day, or 'Double 11,' is the biggest sales day in the world, and its impact in China is enormous. For us, it’s a crucial online event. We prepared our sales channels well in advance with special promotions and discounts, and we’ve been actively promoting products since early November, yielding significant profits.

Are special promotions or exclusive releases planned?

On November 8, we’ll release an exclusive capsule collection featuring Mowalola and Miss60, available only at ENG in China. The launch will be physically hosted in-store, and we’re excited to bring Mowalola to China to engage with her audience during a small in-store party focused on media, press, and our VIP customers.

Online, you deliver worldwide. What is the ratio between domestic and international customers?

Yes, we have domestic online channels like Tmall and an international e-commerce platform. When I joined in 2020, establishing the international channel was one of my first priorities. I noticed that no Chinese concept stores had an international presence, despite the appealing offering for Europe.

It took time to grow our Instagram organically, but results started improving about a year later. During the lockdown in China, when people couldn’t shop physically, our online sales thrived, and we now see a steady flow of orders almost daily.

From which international markets are orders frequently placed?

The US and Korea are our two biggest international markets, likely due to our unique brand mix. In terms of volume, our domestic channels are stronger, as we have multiple options and online shopping is deeply ingrained in Chinese consumer habits.

What is the balance between physical and e-commerce revenue?

Online channels account for about 60 percent of our sales, while physical sales account for 30 to 40 percent, which is quite strong for offline retail in China, especially as online shopping is more prevalent in the market. Additional live streaming allows customers to view garments from all angles, which improves their understanding of the products.

Are more stores planned?

We're definitely thinking strategically about the uncertain economic climate in China. Rather than opening more locations, we prefer to strengthen our existing spaces and enhance merchandising based on each city’s consumer habits. We already have a presence in most key cities in China.