HACHIYA Withdraw From Luggage OEM Business
HACHIYA, which is famous for producing "Xin cool" brand luggage, recently announced that it will quit the OEM processing business from December 2008. This means that the company has taken an important step towards the pformation of professional luggage production and retail enterprises. In the future, the company will sell mainly by TV shopping, catalogue marketing and network sales, and plans to open two street stores in Tokyo and Osaka.
5 years ago, OEM business was one of HACHIYA's pillar businesses, with sales accounting for 25% of total sales revenue. But general manager Kawai Mayuki believes that the existence of OEM business has affected the development of the original brand "Xin Gu Bi" business, and put forward the "zero OEM" strategic vision, gradually reducing the scale of the OEM processing business. At the same time, it proposed strengthening the construction of TV shopping channels and so on, and substantially updated the company's webpage. In 2008, sales exceeded the previous year, reaching 1 billion yen, and gross profit was expected to reach more than 45%.
From the perspective of channels, TV shopping accounts for 50% of sales, online shopping accounts for 15%, catalog marketing accounts for 10%, and wholesale and direct sales account for 20% and 5% respectively. In the future, in order to strengthen the control of circulation channels, wholesale business is limited to some reputable customers, and no store sales and direct selling shops become the main channel of HACHIYA. In order to enter the Tokyo market, HACHIYA has launched promotional activities on the first floor of the Koshi department store in October 22nd, involving 250 commodities.
Previously, although the company held such activities regularly in department stores, it was restricted to some commodities. The company hopes to carry out direct selling activities according to the reflection of Tokyo market. At present, the opening time of the first Street store in Tokyo has not yet been determined, but the location has been identified in the "relatively quiet" business district.
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