Osaka A Suit Enterprise Integrates Subsidiary Business
Dahe company located in Osaka is a men's suit manufacturer. Recently, the company announced that it would adjust its subsidiary business and production system and withdraw from some areas of loss. In the future, Dahe plans to focus on the business of young men's suits and custom suits. On the production side, DHE plans to shut down the mutual foreign factories and concentrate the production of the suit on the Dahe factory. The original jacket production in the mutual foreign plant will also be pferred to Da's women's clothing processing plant. The company hopes to eliminate overlapping between parent and subsidiary companies through this adjustment, and further improve the efficiency of various businesses. After adjustment, the foreign factories only undertake the function of organizing promotional activities, and the business may also be pferred to the head office in the next two to three years.
While adjusting the business of the subsidiary, Dahe also decided to stop the production and sale of some brands.
From the beginning of spring and summer 2009, Dajie will stop manufacturing and marketing the men's clothing brand "ST Dupont Classics" facing department stores and the women's clothing brand "tile", which is also the main channel of department stores.
It is reported that Dahe company will also actively develop shop sales, involving men's suits and jackets.
At present, the annual sales revenue of the tailored suit business is about 4 billion yen, and its customers are mostly men over 50 years old.
The company plans to attract more customers under the age of 50 by increasing the custom-made suit design.
The sales revenue of Dahe company in 2007 (August 2007 to July 2008) was 13 billion 689 million yen, but there was still a deficit.
The company expects that the deficit scale will be greatly reduced in 2008. The effect of the current business adjustment will not be realized until 2009, when the annual sales revenue will reach 14 billion 200 million yen, so that the goal of turning losses into profits can be achieved.
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