The Brand Of &Nbsp Is Dependent On Large Customers.

Brand single

During the reporting period, all the main business revenue came from the brand of "noble bird".

The achievements of the birds are influenced by the popularity, loyalty and reputation of the brand.

Despite the fact that you are constantly improving the brand influence of the great bird, under the single brand, once you are unable to maintain the brand's market image and status in the future, it will have a significant negative impact on your business, finances and business performance.

Relying on big customers to store risks

Strict annual assessment is carried out on dealer's sales target, level of return, payment and channel development results. 32 teams of distributors are gradually formed through survival of the fittest.

If a regional distributor sells, refunds or expands the channel, it fails to complete the plan. The company will coordinate its move out of the regional market and find a better dealer to take over the market to ensure the company.

The dealer management mechanism of this kind of "inferior fittest" led to a gradual increase in the sales revenue of some outstanding dealers.

In 2011, the sales revenue of the five major customers (dealers' actual controllers) accounted for 51.47% of the total sales revenue in the year. Among them, the sales revenue of the regional distributors controlled by the first largest customer, Mr. Chen Chun and Yin Xiaojun, accounted for 22.40% of the total sales revenue.

Despite the signing of exclusive strategic cooperation agreements with existing customers, and the provision of brand promotion funds on the condition of continuing operation of "noble bird brand" to support distributors' expansion of marketing network, the sales performance of the company will be adversely affected if the distributor's contracts controlled by the top five customers are no longer renewed after expiration.

Raw material prices and labor costs rise

Main products of sports shoes and clothing

In recent years, China's labor costs continue to rise, which has a negative impact on sports shoes and clothing enterprises.

The labor cost of our company accounts for about 17% of the cost of production. If the increase in labor costs is too fast, it will also bring pressure on our company's cost control.