Mei Bang Clothing Response To Join In Negative Growth Questioned

Q: what is the main reason for the company's direct revenue growth in 2009 and the negative growth in its revenue?

The company replied:

In 2009, the company's direct revenue increased by 61% year-on-year, much higher than the growth rate of franchise income. This is mainly due to the rapid expansion of direct store outlets during the reporting period, and the number of stores increased from 412 at the end of last year to 523 at the end of this year. In the second half of 2009, new stores opened one after another, and direct sales grew faster. In addition, during the reporting period, Transformers launched a series of highly praised products, the overall upgrading of the terminal store image, and the rapid promotion of the manager's responsibility system contributed to the growth of sales. However, the impact of the financial crisis on joining the market is more obvious. The lack of confidence in franchisees leads to weak growth in shops and tends to be conservative in business. Therefore, the wholesale income of the company has dropped by 4% compared with the same period last year.