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    Hongkong Shoe Companies Actively Develop The Mainland'S Retail Business To Resist The Fluctuation Of The Macro Environment

    2010/7/30 11:04:00 80

    Faith Star Skechers Health

    July 30th hearing

    Xinxing

    Huang Xichao, executive director of footwear industry, said that this year's development focused on casual casual shoes, and strengthened the development of retail business, so as to effectively resist the fluctuation of the macro environment and actively expand the retail business in the mainland.


    According to Hongkong media reports, Huang Xichao, executive director of leisure shoes and baby shoes production company (1170), said that the group will reposition its market strategy from 2010 to 11. The development of this year will focus on casual casual shoes and strengthen the development of retail business.

    retail

    Business can develop into another major source of revenue in the medium to long term.


    Xinxing and main customers

    Skechers

    Jointly develop the new "healthy" shoe series "ShapeUps", since its launch.

    market

    The new product line also contributes to the marginal profit of the group and the overall average selling price.

    The gross profit margin of the general product is on average twenty percent, while the new product is 20% to 25%.


    He pointed out that the cooperation between the group and its customers in research and development of new products' functions and design, improving production systems and improving productivity will help to enhance the value of product mix, and the annual expenditure on new product development will account for three percent to four of turnover.


    Rio Tinto's mainland turnover ratio


    Huang Xichao pointed out that the US market has gradually recovered from the trough after the financial tsunami. Although the European market is uncertain, the order growth is relatively slow. However, in the first quarter (April to June), even for the off-season industry, the group's total orders still recorded an increase of ten percent, while the current order has been followed by September, with double-digit increases year by year.


    However, in order to more effectively resist the fluctuation of the macro environment, Xinxing actively develops the retail business in the mainland. He said that the target will grow to five in the United States, Europe and China in the next three to five years.

    As of the end of March, the number of products exported to the United States accounted for about 50% of the turnover, while the European market accounted for 42%.


    Three tube parallel anti money raising


    Huang Xichao said that the retail sector has launched a new baby footwear brand Fiona 'sPrince, which now has two and four shops in Hongkong and the mainland respectively.

    The brand will also be flagship in the future, and plans to add ten to fifteen shops in the mainland, of which nine belong to Fiona 'sPrince.


    In addition, Xinxing also specializes in MOCCA, a retail chain business of women's shoes and handbags. As a measure of long-term diversification and profitability, MOCCA has entered China for the first time in the year. Its network now includes five shops in Hongkong, four in the mainland and one in Macao.

    As for the acquisition of Chi Chi Group, the latter operates male fashion retail business and owns the brand AIMS.

    Chi Chi Club currently operates two shops in Guangzhou, China.


    He disclosed that the group uses about two to 30% profit every year to expand its business, about twenty million to thirty million yuan, and uses five percent to ten turnover as a brand promotion.


    When asked about the rising manufacturing costs and the trend of RMB in Southern China, Huang Xichao pointed out that the group planned to adopt three parallel production strategies.

    First, the existing facilities in Zhuhai and Zhongshan are further upgraded to high-end R & D centers, focusing on American customers and higher value-added production needs.


    In addition, the Kampuchea plant is allocated to support the special delivery to European orders.

    As for inland facilities located in Jiangxi, China, it will be designated as labour intensive processes and low cost products.

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