Vigna S Fashion V-Grass:Made In China Go Abroad

Nanjing Vigna S fashion Fashion (V-Grass Fashion Co.) has a grand plan to become China.

The Valentino of the boundary.

To achieve this goal, the company recently acquired Teenie Weenie, Korea's fast fashion brand, which has 6 times the number of Chinese stores in the Vigna S brand.

This month agreed to acquire the Chinese business of E-Land Group's brand Teenie Weenie, which is worth about $900 million.

Tao Weimin, vice president of Milan, said that the acquisition would help boost sales and profits for Vigna S, now planning to open its first overseas branch in the country, after the listed retailer has shut down its scattered 1/3 stores and focused on developing high-end businesses.

"We hope to find a brand to support our performance, so that we can be in the"

"Concentrate on doing what we want to do," Tao Wei Min said in an interview in Nanjing. "As a listed company, if we spend too much time making profits from restructuring, the market will react negatively.

This acquisition can make us more open to work. "

Teenie Weenie, famous for its cute teddy bear design, has 1400 stores in China.

Its V-Grass is only about 215, and its target group is the middle class consumers who are increasingly willing to pay more for high-end products.

Tao Weimin said or will be further integrated.

More acquisitions

"After the Teenie Weenie is done, we will seek to acquire other foreign high-end fashion brands," Tao Weimin said. "We believe that now is the period of merger and integration, and the leading local fashion companies will be able to stand out.

Our goal is to become such a company.

According to Euromonitor International, a fierce competition in China

The two largest companies in the market are Hai Lan home and Fast Retailing Co. (Uniqlo). In 2015, the two companies had 1.2% and 1% market share respectively.

"Here.

It is also necessary to consolidate, and those who will succeed in the future will be those companies that will do the right systems in place, such as inventory management and store location, "said Ben Cavender, analyst at China Market Research Group." Teenie Weenie is well positioned and has a casual consumer base at a young age. "

Shutting down stores

In the past year, VGrass has shut down its 1/3 stores in the three or four tier cities of China and the low-end mall stores in a second tier city, Tao Weimin said.

Although these stores have already made profits, the company still hopes to win the high-end position in China's largest city.

V-Grass, which sells for about 3000 yuan, plans to invest further in the Teenie Weenie women's clothing line, and pottery says this category is losing market share at the moment.

He added that the Korean brand is in the

,

Accessories and accessories are performing well, with sales increasing 20% to 30% annually in China.

Teenie Weenie sales in China last year amounted to 2 billion yuan, and net income exceeded 500 million yuan.

He also said that compared to V-Grass, there were 112 million yuan profit and 814 million yuan revenue.

Shop in Milan

Tao Weimin said that V-Grass's own operation can generate positive cash flow without capital injection.

The company plans to open its first overseas V-Grass boutique in Milan, Italy, Valentino, and will open early next year.

In order to reinvent the company and inject cultural connotations, the company acquired the Limited by Share Ltd of Nanjing Yun Brocade Research Institute for 135 million yuan in July 2015.

The company produces exquisite and complex jacquard silk fabric "Yun Brocade", and the Yuan Dynasty began to become a tribute to Royal costume.