The two companies are not strangers to one another. 3G has invested in Grendene numerous times over the years and saw an opportunity to “combine forces,” Assumpcao said. 3G and Grendene’s combined initial commitment in the JV is about $100 million, and each company’s investment is proportional to its ownership stake.
“China and the U.S. are 40 percent of the global footwear market but for Grendene they are only 4 percent, which is a big opportunity,” Assumpcao said. The company says it is already on track to double the sales volume of Melissa’s Possession sandal in the U.S. by the end of this year. The label is famous for its jellyThe executive shied away from calling the venture a distribution deal, saying that it encompasses more ambition.
“We don’t want to step away from our brand roots or soul but we need more relevance and to speak the language of these markets. Back to school in the U.S. and Brazil mean different things at different times of the year. The mix of self-expression and comfort is different in the U.S. and China. We were lacking this knowledge before,” he said.
E-commerce is another key focus for GGB, and Assumpcao said that Melissa’s direct-to-consumer sales have already increased 300 percent year over year, due to improvements in staffing, systems development and marketing. “D-to-c is one of the main priorities where we were really lacking. We will still have wholesale but want to make our website connect more with what consumers want to see,” he said.