Japanese eyewear brand Aigan is set to withdraw from China after experiencing losses for years in this market, according to Nikkei Asia.
The ongoing Covid-19 situation in China has forced the brand to plan its way to pull out its operation from the country as it hopes for turning a profit fade. The company already saw weak turnover in the market before being hit by the Covid-19 disruption, which forced temporary store closures.
The eyewear retailer’s Chinese business has been recording a loss for seven years consecutively since 2015. Aigan entered China in 1994 and opened six stores in Beijing and Tianjin, including franchisees.
Based in Osaka, Aigan was founded in 1961, operating eyeglass specialty store chains offering eyeglasses, hearing aids, sunglasses, and other related products. As of March, the company has 223 stores and two consolidated subsidiaries.
The company estimates to record a group net loss of US$3 million for the fiscal year ending March. Losses related to liquidating the Chinese unit were estimated at $792,000, according to the company.
Last month, the world’s biggest eyewear maker EssilorLuxottica said its retail business bounced back strongly in the region after a negative second-quarter performance hit by Covid-19 lockdowns in mainland China.