 The Group’s business is broadly divided into two main segments – the footwear business and the sportswear business.
Company-owned brands include Belle, Teenmix, Tata, Staccato, Senda, Basto, JipiJapa, Millie’s, Joy & Peace and Mirabell, etc. Distribution brands include Bata, Geox, Clarks, Mephisto, BCBG, ELLE, Merrell and Caterpillar, etc.
For company-owned brands, the Group mainly adopts a vertically integrated business model which covers product research and development, procurement, manufacturing, distribution and retailing. For distribution brands, the Group operates the business in two different models, brand licensing and retail distribution.
The majority of our sportswear business is in the form of retail distribution, including first-tier sportswear brands Nike and Adidas, and second-tier sportswear brands Kappa, PUMA, Converse, Reebok, Mizuno and LiNing, etc. (The distinction between first-tier brands and second-tier brands is based on two major factors. First, their relative importance - Nike and Adidas account for more than 80% of the sales of the sportswear business; Second, their operational, managerial and performance characteristics - Nike and Adidas have much better brand recognition among Chinese consumers and richer product offerings, as a result their store productivity is much higher than second-tier brands and thus profitability is also stronger.)
According to the China Industrial Information Center, for the year 2010, 6 of the top 10 brands in ladies’ leather footwear market in PRC in terms of sales revenue belonged to the Group, incluing Belle(1st), Teenmix(2nd), Tata( tied for 2nd), Staccato (6th), Senda(7th) and Basto(9th). Senda ranked first in men’s leather footwear market.
As at 30 June 2011, the total number of company-managed retail outlets of the Group reached 13,157 in Mainland China. The Group also managed 164 retail outlets in Hong Kong and Macau. |
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