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Annual sales of 1 billion yuan is considered the "ceiling" for the underwear industry. However, just after the Spring Festival, Cat International, the largest underwear company in central China, announced an ambitious expansion plan: to open more than 1,000 Cat Living Halls across China, aiming to achieve over 1 billion yuan in sales within 2-3 years, and to build the first unit of China's lingerie brand on the GEM (Growth Enterprise Market).
"The strategy of creating the Oriental version of Victoria's Secret has been clear from the start. We hope that within the next five to ten years, we can establish thousands of 'sexy lingerie life experience museums' nationwide, which is our clear strategic goal," said Lin, Chairman of Cat International.
**Creating the Eastern Version of "Victoria’s Secret"**
It is well known that Victoria’s Secret is the top lingerie brand in the U.S., with over 1,000 stores and annual sales of nearly $6 billion in 2007. The brand offers a wide range of products, including women's undergarments, bras, swimwear, casual wear, shoes, cosmetics, accessories, luxury shorts, perfumes, and related books.
In 2007, after several overseas trips led by Lin, Cat International began a dramatic transformation and quietly tested the Victoria’s Secret strategy. Its strategic goal shifted from "making China's first underwear brand" to "becoming China's first fashion brand."
In the second half of 2008, Cat International started building more than 10 domestic-style, one-stop lifestyle halls that integrated multiple categories of apparel. These living museums offered not only cat’s fashion clothing but also sports wear, jewelry, and perfumes.
After a year of testing, in early 2009, Cat International officially launched large-scale construction of its lifestyle museums across the country.
Currently, Cat International owns five brands: "Millow Secret," "Millow Sport," "Zoka," "Millow Jeans," and "Catwoman." These brands cover fashion underwear, sportswear, personal wear, and other fashion-related categories. The company's business development has expanded from fashion underwear to broader fashion clothing.
With declining profits in the traditional underwear sector, Cat International is trying to diversify. According to Huang Shuoshuo, a senior planner at the Shanghai Jianshe marketing team, many well-known brands like Tingmei, Arctic Fleece, and others have struggled in the underwear industry, with some even operating at a loss.
Li Guang-dou, a well-known brand expert, believes that the 5-year plan to build over 1,000 lifestyle museums is similar to Victoria’s Secret’s model, which helps boost brand visibility. In recent years, Cat International has shifted from underwear to cat costumes and fashion lingerie, a strategy to cope with seasonal fluctuations. By expanding product lines and brand portfolio, it’s essentially a smart marketing move.
**Can Cat International Be the First Lingerie Brand Listed?**
To create the Eastern version of Victoria’s Secret, Cat International is adopting a "not selling underwear" approach to break through its business model.
In the second half of 2007, Cat International began raising funds with the help of a Shanghai-based consulting firm, setting a target for an IPO. The original plan was to go public in 2009, but this timeline has since been pushed back to two or three years.
In 2009, Cat International built over 900 lifestyle museums domestically. Tao Kai, the brand director of Cat Tao, revealed that besides over 100 directly operated locations, the rest were funded by social investors.
Tao Kai explained that by copying Victoria’s Secret’s business model, Cat International has created a full industrial chain, significantly increasing its sales potential. In the third quarter of 2009, a well-known Beijing-based investment bank invested in Cat International as a strategic investor. However, Tao refused to disclose specific details due to commercial confidentiality.
"In my planning, everything except the brand can be outsourced—sales can be outsourced, and the best thing we do is build the brand itself," said Swimin, referring to their business strategy.
The rapid expansion of Cat International is driven by the desire to capture a 200-billion-yuan market in the underwear industry. However, some experts believe that such fast growth comes with significant challenges.
Opening over 1,000 lifestyle halls represents a major shift from Cat International’s traditional agency management model. Beyond the financial investment, the success of this model largely depends on whether the company’s operational model can adapt to new changes.
Additionally, the shrinking capacity of the underwear market poses another challenge. In recent years, changing consumer habits—such as the decline in young people wearing undergarments—have led to sharp drops in sales. Rising procurement costs and falling prices have also impacted the industry.
Once a dominant player in the domestic market, Antarctic People has now disappeared, and established brands like Sanzhang and Ying'er have seen their prices drop significantly.
Besides Cat International, brands like Love, Carrie Poems, and others are also preparing for an IPO. However, compared to traditional retail models, Cat International’s self-built sales channels and integrated supply chain make it more attractive to investors.
"From an agency model to controlling the terminal chain, the Chinese market is certainly huge," said Lee, reflecting on the company’s ambitions. "But the lingerie industry is seasonal. Ensuring consistent revenue throughout the year will be the biggest challenge."