Fuanna Lin Guofang: The Home Textile Industry Is The Dark Horse Of E-Commerce In 2010.

Under the expectation of inflation, the concept of big consumption concept is continuously pursued by the capital market, and is the leading enterprise in the listed companies of the textile industry. Fuanna The company also has a good performance, favored by many institutions such as time fund. Despite the involvement of Listed Companies in traditional department stores Electronic Commerce General performance, but in the subdivision of the home textile industry, fuanna has been active. New economic factors To integrate into the development of enterprises, and vigorously develop the traditional channels, while developing e-commerce, not only set up its own official B2C website, but also opened the website to Taobao.

Fuanna Home textiles The industry is a sub sector in the textile industry. It is affected by the policy of stimulating domestic consumption and upgrading consumption. It has been in the stage of rapid development in recent years, and has maintained a two digit growth in recent years. Today, not only is fuanna, Luo Lai home textiles, Meng Jie home textiles and other home textile listed companies are also building their own network marketing channels. For home textile products with more standardized product packaging, e-commerce is not only a powerful supplement to offline channels, but also a higher proportion of the future. To this end, the securities daily visited the chairman of fuanna company. Lin Guo Fang 。

Securities Daily: as a traditional textile listed company, how do you think of doing e-commerce?

Lin Guofang: e-commerce is the future trend of shopping. More and more consumers, especially young consumers, like online shopping this way of consumption. In particular, it became the mainstream shopping mode after 70, 80 and 90's. Therefore, entering e-commerce is an important supplement to traditional sales channels.

Securities Daily: how do you view the current market structure of home textiles e-commerce?

Lin Guofang: at present, the market structure of home textile e-commerce is almost the same as that under the line, that is, no one has a particularly large proportion of e-commerce sales, and the largest sales estimate is around 50 million. The market structure shows two low and one high status. The first low is the low entry threshold of e-commerce, and the second low is the low proportion of online sales of each brand to total sales. One is that the home textile industry has a high proportion of sales in e-commerce (50-60% growth). Home textile industry is the dark horse of e-commerce this year, besides the non-staple food, followed by home textiles. The two are the fastest growing. The main reason is that consumer demand for home textiles is increasing.

Securities Daily: what are the main competitors of fuanna in the field of e-commerce? Where is the advantage of fuanna?

Lin Guofang: fuanna has the advantage in R & D and management. Fuanna owns a strong home textile design team in Asia. It is one of the largest independent intellectual property companies in the same industry in China. In the same industry, there are the largest number of new materials, new technologies and new technologies in the same industry. More than 200 new products and 600 new products are launched every year. In the manufacturing process, fabric use and style, we have created a number of first home textile industry: the first domestic manufacturer of flat screen printing products, the first to apply the world's largest single largest single silk jacquard technology in the R & D design... These advantages have played a very important role in our research and development for e-commerce products.

Next is a professional and efficient operation team and management system. Fuanna is the first home textile industry to introduce the German SAP-AFS enterprise management system. Information resources sharing such as R & D, supply, production, sales and finance has been realized, so that the management and management of the company are more standardized and transparent, and the management level and operational efficiency have been continuously improved. This provides a powerful system guarantee for the company's rapid decision making and market expansion. This system also laid a good foundation for the development of e-commerce. {page_break}

Securities Daily: at present, what is the sales volume of fuanna's e-commerce? How much does it account for the total sales volume? What is the growth of e-commerce?

Lin Guofang: because our e-commerce is just at the beginning stage, the current sales account for a small proportion of the total sales, but we can see clearly the growth of e-commerce. For example, a holiday of Taobao (November 11th) has made a 936 million single day turnover, which exceeds the total retail sales of the shopping paradise Hongkong one day (the total retail sales of Hongkong is 850 million a day). It can be said to be very magical.

Securities Daily: before the central leadership inspected fuanna, did the company evaluate or instruct the innovation in the field of e-commerce?

Lin Guofang: when Vice Premier Zhang Dejiang visited fuanna, I made a detailed report on the overall development of the company. Our company is in the textile industry of traditional industries, but we are an innovative enterprise. We have highly valued Zhang Dejiang in the three aspects of scientific research, marketing and management.

Securities Daily: in addition to the official website, do you have any sales of third party websites like Dangdang, excellence, fan and other department stores? How do you consider them?

Lin Guofang: in addition to the official website, we only have official flagship stores in Taobao. Dangdang, excellence and van guest are not currently distributing. We will focus on standardizing network channels in the beginning of this year, and will do so in the first half of next year. We will take the official website as the focus of promotion. Taobao will also increase the speed of updating our products. We will have specialized R & D teams to plan e-commerce products.

Securities Daily: at present, what is the sales volume of the official website and the official online shop of Taobao?

Lin Guofang: at present, the sales volume of Taobao's official store is large. The company's official website is currently making new plans, and all sales will be based on the official website's radiation. In November 11th, our Taobao's single day business revenue was high, mainly in suite and core products. About 75% of the customers are old members, and two times a lot of consumption. Therefore, on the basis of official website, we will also attach great importance to the platform of Taobao.

Securities Daily: what is the difference between the online and offline prices of the company's products? Will network sales have a negative impact on the offline channels?

Lin Guofang: online and offline will not conflict, but on the other hand, it is a complementary channel. Because we know that online shopping consumers hardly buy products in traditional stores, while consumers who like shopping shopping do not like shopping online. So there will be no conflict. In addition, the products of our two channels are different, because they are the two consumption patterns, so we start to divide the products from R & D.

Securities Daily: fuanna's share price continues to rise. What kind of return will fuanna give investors in the future?

Lin Guofang: according to the statistics of the China Textile Industry Association, the output value of the whole home textile industry reached 978 billion yuan in 2009. At present, the industry market is scattered, the scale of enterprises in the industry is not large, and the growth space is huge. Fuanna is one of the leading enterprises in home textile industry. For many years, home textile market share is the top three in the industry. In 2009, it successfully landed in the domestic capital market and became one of the small and medium-sized listed companies. Taking this opportunity, fuanna will continue to give full play to the brand and professional advantages of the leading enterprises in the industry with the help of the strength of the capital market, adhere to the independent innovation, constantly improve the added value and core competitiveness of the products, and share with the vast number of investors a feast for the rapid growth of the industry and enterprises.