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Wensli has designs on European silk market
Last Updated: 2014-07-03 07:18 | China Daily
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Wensli Group announced Wednesday it had named a former Hermes executive as CEO of one of its companies in a move designed to make it one of the world's dominant high-end silk producers.

Patrick Bonnefond, former head of Hermes Textile Holdings, is now chief exectutive officer of Wensli Silk Culture Co. Still based in France, he will be in charge of the internationalization of Wensli's silk products, including mapping out a clear positioning for the company's three brands and promoting them in the high-end markets of Europe .

Bonnefond said that with the world's luxury market increasingly focused on Asia, Chinese brands stand to gain. And the silk industry, he said, has the highest potential to grow.

"China should not be merely a manufacturer of silk products. The country should have its own luxury silk brands. Among the many Chinese silk companies, I see Wensli as the top candidate," he said.

Bonnefond joined the company after his first and only visit to Hangzhou in May. He said he is confident that through collaborative efforts, this dream will be realized.

Tu Hongyan, chairwoman of Wensli Group, said that Bonnefond joining the company marks a turning point as the company transitions from a Chinese silk producer to a global brand.

"Our goal of becoming China's Hermes has been realized, as our products account for a majority of the Chinese high-end market," she said. "Now we are targeting at the global luxury market."

Headquartered in Hangzhou, Zhejiang province, Wensli Group is the largest silk-producing company in China in terms of annual output. In 2013, the company exported products worth $100 million, an increase of 20 percent year-on-year. Exports accounted for 40 percent of the company's total sales in 2013.

Hiring a former Hermes executive is just one part of the company's strategy to enter the global market.

In October 2013, Wensli purchased French silk company Marc Rozier. Going back more than 120 years, it makes products for more than 40 top-tier brands, including Hermes and Louis Vuitton.

Now, it will manufacture, as well as design, silk products for Wensli. Bonnefond also will become CEO of Marc Rozier.

Li Jianhua, CEO of Wensli Group, said the purchase represents a big step toward brand-building.

"For more than two decades, Chinese companies have been doing original equipment manufacturing for Eu ropean brands. Now it is time for them to manufacture for us. With Marc Rozier as our European front, our products, from design to craftwork, are exactly the same as European brands like Hermes," he said.

In 2011, Wensli began combining silk products with Chinese culture. The upgrading helped the company to win high-end Chinese customers over the past five years.

Domestic sales have grown by more than 20 percent year-on-year, but it was still proving hard for the company to enter the overseas luxury market.

Li said consumers of luxury products value manufacturing origins. "That is why Hermes' silk scarves are always produced in France or Italy. Thus, it is very difficult for Chinese brands to get recognition in the high-end market. But I always keep in mind that a Chinese company should be the best producer of silk products because this industry has been in China for 5,000 years," he said.

Apart from using Mark Rozier to enter Europe, the company also hopes to learn from the French manufacturer.

"One deep impression is that the equipment the company uses are 30 years behind ours," Tu said. "However, they can produce better quality products than us. This is what we have to learn from them."

The company's ambition is a lofty one: to become the most famous silk brand in the world.

"I hope in three or five years, when people think of silk, Wensli will be the first brand that jumps into their minds," she said.

Tu also revealed that Wensli is considering setting up a material foundation in Europe to get the price of raw materials under control.

Fei Jianming, chairman of the Hangzhou Silk Association, said the hiring of Bonnefond could be considered a milestone for the city's silk industry.

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