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According to the World Apparel and Footwear Network, Vagnas, a well-known domestic clothing listed company, is accelerating its diversified and international brand development strategy. It has completed nearly 5 billion yuan to acquire the famous brand “Vini Bear†of Korea’s clothing and love. The upgrade will speed up the creation of a luxury clothing brand with Chinese elements.
"In the textile and apparel field, which represents the cultural charm of the Chinese nation, China will surely be able to breed a world-class brand in the future." Tao Weimin, vice president of Vignas, said in an interview.
M&A expansion invested 4.2 billion to acquire "Vini Bear"
Spending billions of dollars, Vignas acquired the "TEENIE WEENIE" brand three times larger than its size in 2017, and is hailed as an example of the "snake swallow" in the domestic apparel industry.
In September 2016, Vignas announced that it intends to acquire the TEENIE WEENIE brand and the related assets and business of the brand held by Korea Yilian Group. The acquisition is carried out in two steps. The first step is to acquire 90% of the equity of the target company; The company that is waiting for the target will run the remaining 10% of the equity after running three full fiscal years.
At the beginning of this year, Vignas has jointly registered and established Nanjing Jinweige Garment Industry Investment Partnership (hereinafter referred to as Jinweige) with its wholly-owned subsidiary Shanghai Hewei Fashion Co., Ltd., and the company will increase capital through Jinweige. The form takes the 90% stake in Sweet Wei (Shanghai) Trading Co., Ltd. (the target company) to realize the first acquisition of the TEENIE WEENIE brand and the related assets and business of the brand held by Hong Kong and its related parties.
In March 2017, Vignas announced that the company had completed the first-phase acquisition of the assets with the seller, and paid a total consideration of 4.128 billion yuan. The company has obtained the operational control of the target company, reorganized the board of directors of the target company, and changed the business license.
In order to smoothly promote the company's acquisition of the TEENIE WEENIE brand project, the company's actual controller Wang Zhiqin once provided guarantees for the company's acquisition of capital and loans through the form of share pledge.
According to the previous announcement, the company's actual controller Wang Zhiqin held a total of 481.282 million shares, accounting for 32.66% of the company's total share capital. Up to now, 48.726 million shares have been pledged, accounting for 32.62% of the company's total shares. Among them, 18,826,200 shares (12.34% of the company's total share capital) were pledged to Hangzhou Jintou Weige Investment Partnership, and 30 million shares (accounting for 20.27% of the company's total share capital) were pledged to China Merchants Bank Nanjing Branch; the company's actual controller Song Yanjun A total of 37.732 million shares were held, accounting for 25.50% of the company's total share capital. Up to now, 37.732 million shares have been pledged to Hangzhou Jintou Weige Investment Partnership, accounting for 25.50% of the company's total shares.
Through these several shares pledge, the company's actual controllers Wang Zhiqin and Song Yanjun provided the guarantee for the investment of Hangzhou Jintou Weige Investment Partnership and the company's loan to China Merchants Bank Nanjing Branch. The company said that there is no warning line and peace warehouse line in this pledge. Wang Zhiqin and Song Yanjun personally do not receive any funds through the stock pledge, and the relevant obligations of future equity decommissioning are borne by the company.
The Vignas fundraising project has been completed with the acquisition of its own funds, and the company's fixed plan is still undergoing the fourth revision.
This has also received the attention of the Securities and Futures Commission. In the feedback, the CSRC pointed out: "On February 28, 2017, when Vignas convened the board of directors to amend the issuance plan, he signed a target asset delivery agreement with the counterparty. Please confirm that Vigenas will continue to explain It is reasonable and necessary as a fundraising project."
"The acquisition of the TEENIE WEENIE brand, the company has invested about 4.2 billion yuan, of which the market financing is about 3.6 billion yuan, the annual cost of returning funds is about 240 million yuan, the major shareholder has mortgaged all the net worth and assets for the company's acquisition. Tao Weimin told reporters. He admits that the above-mentioned borrowings will be gradually returned through the financing of subsequent capital markets or the net profit of business operations, but the current situation in the capital market has undoubtedly made it difficult for Vignes to raise funds in the market.
It is understood that the TEENIE WEENIE brand was established in South Korea in 1997 and introduced to the Chinese market in 2004. It has now become a leading mid-to-high-end fashion casual wear brand.
"The acquisition of the TEENIE WEENIE brand not only enriched the product line of Vignas, but also increased the scale of the income and profits of the Vignas Group, and opened up new space for the further development of the group. On the basis of the success of the merger, In the next step, the company will continue to promote this strategy and build a diversified brand strategy and industry chain advantage through mergers and acquisitions." Tao Weimin said.
Transformation and upgrading of direct sales stores reduced to 160
According to the company's semi-annual report, in the first half of 2017, there were 24 stores in Vignas, including 21 directly operated stores. The number of stores decreased by 20.79% compared with the same period of the previous year. The number of franchised stores closed three, compared with the same period of the previous year. Reduced by 46.15%.
“This series of changes is actually a continuous upgrade of the VGRASS brand.†Tao Weimin told reporters that it must be seen that the current apparel industry is facing very fierce challenges. In addition to the competition between domestic brands and international brands, sales channels have also occurred. Great changes, the traditional single retail department store has gradually been replaced by a variety of shopping centers, such as shopping, catering, entertainment, traditional offline sales are gradually impacted by online sales models such as e-commerce. This also forces apparel companies to make a transition in advance, otherwise they may face a crisis.
He told reporters that it is precisely because of this that the company has been transforming since 2015. On the one hand, it began to adjust and close traditional department stores and specialty stores; on the other hand, it also increased shopping malls and online layout.
“In the short term, profit will definitely be affected, but in the long run, it will bring more benign driving force to the company's development,†he said. The reform and upgrading have already achieved initial success. Although the continuous increase in the number of brands has continued to increase since 2015, the number of stores has continued to decrease, and operating income and net profit have continued to decline. However, revenues in the first half of 2017 have turned positive year-on-year (number of stores and the previous year) Down 22% year-on-year).
In addition to building a good sales channel, the reporter learned that in order to better achieve brand upgrades, Vignas began to cooperate with international advanced fabric suppliers in 2015 to increase investment in design and development, in Milan, Seoul. The design teams in Shanghai and Nanjing learn from each other and compete with each other; continue to optimize product processes; while polishing and improving the supply chain system.
“The goal of consistent series of actions has significantly increased the value of VGRASS products and brands. The core competitiveness and market position of the brand have been significantly improved. At the same time, it has accumulated experience, exercise ability and training for the next step to create a luxury brand with Chinese cultural elements. Team." Tao Weimin told reporters.
Layout overseas to create a "Yunjin" brand
“Brand internationalization†is also an important part of the Vignas strategy. The "Economic Information Daily" reporter learned that Vignas registered VGRASS ITALYS.RL in Italy at the end of 2016, and rented shops and office space in the top fashion districts of Milan, Italy in the first half of this year. Established a fashion R&D design agency, hired internationally renowned creative directors and designers to launch high-end branded fashions with both Chinese cultural elements and international fashion trends.
It is worth mentioning that the VGRASS high fashion store in Milan is scheduled to open at the end of this year to showcase the fashion and art of Chinese cultural elements such as Yunjin embroidery.
"The reason why the acquisition of Yunjin brand is actually an important strategic layout of the company, I hope to create a luxury brand that truly represents China and can represent Chinese culture." Tao Weimin told reporters. It is understood that Vignas acquired the Nanjing Yunjin Research Institute in 2015. Yunjin has a history of more than 1600 years, of which more than 600 years are royal royalties, representing the peak of the development of ancient Chinese silk textile technology, and the enrichment and embodiment of Chinese culture in the field of textile and clothing.
He said that in addition to the acquisition of funds, Vignas has invested tens of millions of yuan in the daily operation of the Yunjin Institute, although the acquisition of Yunjin project can not see the return in the short term, but in the long run, it will be Weige. Nass offers a brand new brand for the international market to provide the freshest blood.
"We hope to expand the pattern of overseas markets, integrate the elements of Yunjin into VGRASS women's clothing, test the international market, and lay the foundation for the next step to launch a new independent women's brand with Yunjin as the core." He said. In his view, the luxury brand that creates the "characteristics of Chinese cultural elements" is a business that competes with powerful rivals such as international first-line brands and international luxury brands.
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