China'S Local Valentino, Chinese Clothing Brand V-Grass

Have bold plans and hope to become China's Valentino.

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.

Nanjing, China -- the V-Grass Fashion Co. of Nanjing has a grand plan to become the Valentino of China's fashion industry. (Vigna S, Fashion)

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.

Vigna S agreed this month 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 concentrate on doing what we want to do," Tao Weimin told 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. "

Lovely teddy bear design

The famous Teenie Weenie has 1400 stores in China. There are only about 215 V-Grass under the banner. The 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.

"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, the two largest companies in China's competitive apparel market are Hai Lan's home and Uniqlo's Fast Retailing Co. (Uniqlo), which share 1.2% and 1% market share in 2015 respectively.

"The clothing market here needs consolidation. The successes 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 has a good location and has a foundation for young fashion and leisure consumption."

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.

At about 3000 yuan, V-Grass plans to further invest in the Teenie Weenie women's wear line. Tao said that this category is losing market share.

He added that the Korean brand performed well in men's wear, children's wear and accessories, and sales increased 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 in contrast, V-Grass has 112 million yuan and 814 million yuan in 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.

"We hope to become a fashion luxury company that combines traditional Chinese culture with elements," he said.