Chinese fashion group Vi-ein to go public in Shenzhen – WWD

SHANGHAI— The high-end women’s fashion group Vi-ein Fashion Stock Co., Ltd. filed an initial public offering prospectus earlier this month. The company plans to go public on the Shenzhen Stock Exchange.

The Shenzhen-based company plans to issue 19.63 million shares and aims to raise 402 million renminbi, or $59.6 million.

Founded in 2001 by husband and wife duo Lin Ma and Zhonghong Ma, Vi-ein owns contemporary womenswear brands Ein, Pure Tea and Plain People. She also bought London-based Chinese designer Renli Su in 2017. The brands all take a natural and artistic approach, rather than an avant-garde approach to design, carving out a niche for themselves in the high-end women’s fashion market. .

In 2021, Vi-ein’s revenue increased by 31.7% to 631 million renminbi, or $93.6 million. Net profit rose 36% to 113 million renminbi, or $16.8 million.

Vi-ein is betting on the strength of China’s high-end fashion market to drive growth. According to Euromonitor, the women’s clothing market reached 814.92 billion renminbi, or $120.83 billion, in 2021. Despite slowing growth due to COVID-19 related lockdowns, the high-end market will increase steadily to account for 24.74% of total women’s wear. market by 2026.

According to the filing, in 2021, Vi-ein’s results were largely driven by the growth of flagship brand Ein, which accounts for more than 70% of total sales. Pure Tea follows with 24%, Plain People and Renli Su represent 1.9% and 3.2% respectively.

Ein is known for her light dresses in sober colors, with prices ranging from 1,000 renminbi, or $148, to 5,000 renminbi, or $740. The brand’s sale per square meter reached 36,300 renminbi, or $5,382 this year, slightly above competitors such as Jorya, Dazzle and Ellassay.

Ein named Chinese actress Cecilia Liu, known for her roles in Chinese time travel dramas, as its 2021 brand ambassador.

Vi-ein said he plans to use IPO funds to expand marketing efforts, increase retail channels and build warehouses or logistics centers.

Vi-ein operates 133 retail stores in China, and about half of the outlets are franchises. The company also sells on e-commerce sites such as Tmall, Douyin and JD.com, which account for 28% of total sales.

Renli Su, the eponymous womenswear brand launched in 2014, is described by Vi-ein as having an “aristocratic British” sensibility, with the brand’s styling in line with Ein’s romantic ideals but adopting a more feminine approach.

When purchasing the brand, Vi-ein pledged to invest £3 million in it, according to media coverage at the time. Renli Su is currently offered at well-known multi-brand fashion retailers such as Dover Street Market, Selfridges and Ssense.

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