Hongkong Shoe Enterprises Xinxing Actively Expand The Mainland'S Retail Business

According to Hongkong media reports, Huang Xichao, executive director of the shoe industry and footwear manufacturer (1170), said that the group will reposition its market strategy in the two to 11 years. This year's development focuses on casual casual shoes and strengthens the development of retail business. It is believed that retail business can develop into another major source of income in the medium and long term.

Xinxing and its main customer Skechers jointly develop the new "healthy" shoe series "ShapeUps". Since the launch of the product, the market has responded well, and the new product series 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

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,

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.