Busen Shares Will Increase Investment In Direct Stores

25 years of concentration

Production and marketing

(002569) when it comes to the capital market, Chen Jianfei, chairman of the company, said in yesterday's online roadshow that he would use fund-raising funds to increase investment in Direct stores and raise the company's profitability.

According to the briefing, as of the end of 2010, Busen shares owned 11 Direct stores and 752 franchised stores.

The marketing strategy of "distributing mainly and directly supporting" has laid a solid foundation for the sustained growth of Busen's shares in the past 20 years, and has also shown great advantages in coping with market changes, collecting terminal information and reducing operational risks.

"The company will continue to maintain its existing sales model in the future, but on the basis of consolidating and developing the existing distribution network, we will gradually increase investment in direct investment network."

When talking about the marketing network construction, Chen Jianfei said that the direct store has the functions of management, demonstration, retail and advertising. Strengthening the construction of direct network is an urgent need to promote the company's brand strategy and improve its profitability.

Moreover, the average flat efficiency (the efficiency of terminal stores per square meter) is higher than that of franchised stores.

Data show that in 2009 and 2010, the efficiency of Busen's stock outlets reached 38.75 yuan / square meter / day, 41.85 yuan per square meter / day, higher than the 35.06 yuan / square meter / day of the franchised store, and the average level of 37.72 yuan / square meter / day, showing a good profit situation.

The construction of the marketing network of the fund-raising investment project will be used in the construction of the direct store. After the project is completed, 26 new outlets will be added.

Chen Jianfei further explained: "according to the future marketing network construction plan, it is estimated that there will be 900 stores, outlets and counters in 2011, reaching 1000 in 2012 and 1200 in 2013, when Busen shares will form a multi-level management and marketing network system with complementary distribution and direct operation."

In addition, in view of the trend of China's clothing consumption changing from low to high grade, branding and personalized consumption, Busen shares intends to use the fund-raising fund to make product structure adjustment and capacity expansion.

Data display

Since its entry into the market in 2003, it has been developing. By 2010, the total output has reached 393 thousand and 400, representing an increase of 25.47% over 2009. The jacket has gradually become one of the core products of Busen shares.

However, at present, Busen has no special equipment for producing jackets and other casual wear.

The products are commissioned by the mode of production.

The project "annual output of 400 thousand medium and high grade jacket production lines" will mainly solve this problem.

"After the project is released, the company will effectively improve product quality control and market reaction speed, and the jacket products will be pformed from commissioned processing to independent production, and gradually improve the proportion of jackets in the company's product mix."

Wang Jianjun, general manager of the company.