China'S Two Or Three Tier Cities Will Continue To Be The Marketing Focus Of PEAK'S Development Layout.

According to the report, PEAK group increased its average selling price in the first half of the year, so its turnover increased by 24.7%.

Sales of footwear, clothing and accessories increased from the same period last year compared with the same period last year. Sales of footwear and clothing in the first half of this year exceeded 1 billion yuan, including 11 million 800 thousand pairs of shoes and shoes, with a sales volume of 1 billion 19 million yuan, an increase of 22.9% over the same period last year, and 24 million 100 thousand sales of clothing products, with sales reaching 1 billion 194 million yuan, representing a 26.8% increase over the same period last year.

In addition, the gross profit margin increased by 0.2 percentage points to 39.9%, of which the gross margin of footwear products increased by 1.8 percentage points to 39.6%, while the gross profit margin of clothing products increased by 2.6 percentage points to 40.2%.

From the regional turnover, in the first half of this year, as PEAK sports expanded its distribution network to China, the Chinese market revenue was 2 billion 23 million yuan, an increase of 25.3% compared to the same period last year, accounting for 89.7% of the total turnover, of which the sales performance in eastern China was outstanding, and the income in the first half of the year was 855 million yuan, up 30.6% from the 655 million yuan a year earlier.

In addition, as Asia and Africa are emerging

China's two or three tier cities will continue to be the marketing focus of the development layout.

According to the report, as of June 30, 2011, the number of PEAK sports retail outlets increased by 395 to 7619 at the end of 2010, up 14.1% from the end of last year, and the total sales area and average sales area were 595 thousand square meters and 78.2 square meters respectively. The average sales volume of each retail outlets was 273 thousand yuan, up 10.1% over the same period last year.

The report said that in the first half of 2011, the increase in raw material prices was greater than the increase in direct labour costs, which led to a rise in the proportion of raw material costs to total production costs from 65.4% in the same period last year to 68.3%. The cost of PEAK sports in the first half of 2011 was 1 billion 357 million yuan, an increase of 20.3% over the same period last year.

In terms of product innovation, PEAK group launched 381 new footwear products, 644 new clothing products and 399 new accessories products in the first half of the year, compared with some 2000 new shoes and 2700 brand clothing products launched by XTEP group in the first half of this year, there is a slight shortage of product development.

Like XTEP, another major sports brand in China, PEAK sports also focuses on China's two or three tier cities as the marketing focus of its products. The number of retail outlets in two or three cities in China has reached 7193, accounting for 94.4% of the total number of PEAK brand retail outlets.

The report said PEAK group's new retail stores will also be located in most of the two or three tier cities in the future.

The report shows that at present, most products of PEAK group are still outsourced production. In the first half of the year, PEAK group produced 12 million 300 thousand pairs of footwear products, of which 52% were outsourced products, and about 5 million 900 thousand pairs of footwear products were produced by itself, 24 million 700 thousand of which were garment products, 75.3% of which were outsourced products, and 6 million 100 thousand of the clothing products produced by themselves. PEAK group plans to invest 80 million yuan in the second half of this year to exaggerate production capacity.

The footwear factory in Shanggao County of Jiangxi province is expected to be put into full production at the end of 2012, when the production of PEAK group footwear products will increase to 15 million 700 thousand pairs. Clothing products in Huian County, Fujian Province, are expected to be put into full production at the end of 2013, and the production of PEAK group will increase to 18 million 700 thousand.

In addition, PEAK group also plans to invest 1 billion yuan to build a garment production base in Heze, Shandong, and is expected to start construction in 2012, which has been completed for 3 years.