Garment Tycoon Cultivates Many Series Of Business &Nbsp, Will Enter Underwear Field.

Even from 3 Wenzhou

With these questions, China Securities Daily interviewed Wu Zhize, chairman of the news bird group and director of the wedding bird.

He said that the company will steadily promote the development of multi brand and multi series business, and expects that the company will enter a new round of development cycle in 3 years or so.

Steady and steady development

China Securities Journal: in the first half of the year, the number of news bird brands and San Jie Luo brand outlets, as well as the total sales area expansion rate of the company were slightly lower than the market expectations.

Will the expansion speed increase next?

Wu Zhize: we think dot quality is more important than quantity.

On the one hand, we insist on the strategy of opening large stores, and pay more attention to the single store area than the number of stores.

In today's business ecological environment, shopping malls are relatively strong, so the company has basically requested more than 500 square meters of large flagship stores in the past two years.

On the other hand, the company made a structural adjustment to the distribution of stores in the first half of the year. The number in the semi annual report is the net number of final net increase, and this adjustment will continue in the future to fully tap the performance of individual stores.

China Securities Journal: St.

Wu Zhize: there are two completely different modes of operation: the birds of good luck and the San Jie Luo: the good birds are dressed positively and take the added value route; Saint Angelo is casual wear and fast moving consumer goods.

Western clothing market has been showing negative growth in recent years. It is not easy for us to win and achieve positive growth. Therefore, we must break through the value mining.

The rapid development of casual wear market is the current trend. Of course, the growth of the company's performance will be tied down in the next 2 to 3 years, and the casual wear market is also facing fierce market competition. But the market capacity of western style clothes is limited after all.

For specific input and expansion speed, we will go through further investigation and demonstration before making a decision.

If we choose to increase investment, we expect that the company will enter a new round of development cycle in 2-3 years.

China Securities Journal: you anticipate

Wu Zhize: the first half of the professional group buying business picked up because of the bad market in the same period of 2009. The first half of this year returned to normal level in the same period in 2008. It is expected that the development trend in the second half of this year will be similar to that in the first half of the year.

In the future, the competition of professional group buying business will be fierce. The gross profit margin will be lower and lower. On the one hand, bidding will reduce profits. On the other hand, labor costs will rise faster. Our factories are in Shanghai and Wenzhou. The cost of living in these two places is relatively high, which makes the company face more labor cost pressure in a short period.

Now we are also looking for production bases elsewhere, but the pfer is not completed in two days. It will take several years to complete.

Exploring multiple products

China Securities Daily: at present, the company is also developing leather goods series, testing water women's clothing series, and actively exploring underwear series and sports products. Please tell us about the development of these businesses and what they hope to achieve.

Wu Zhize: in planning, the news bird brand will include eight series, namely classics, business, leisure, leather goods, leather shoes, women's wear, underwear and sports.

Leather goods business has been launched since 2009, and the scale has expanded this year. Women's clothing business has been designed this year and is now on the way. Underwear and sports series are just beginning this year and are in the conceptual and design stage.

As a preliminary exploration, we have chosen dozens of stores to launch these series.

If separately calculated, these series need to wait for two or three years to perform financially, but on the whole, the cost of production and circulation is fixed, and these series can be said to be incremental.