Key questions:
1. What
are China Lilang's strategies?
"As one of
the leading menswear enterprises in China, we strongly believe that a prominent
brand image is integral to our corporate core value as it enables the Group to
thrive in the rapidly changing market environment and withstand market changes."
– Chairman of the Board.
- During
2012, China Lilang launched various promotional activities to strengthen
its brand imagine, including increased spending on advertising on CCTV
during UEFA European Football Championship final tournament held in June
and the Olympic Games held in July/August. To maximise brand exposure and
enhance brand awareness, China Lilang also used billboard advertising at
the Shanghai Hongqiao International Airport and the Bangkok airport in
Thailand, targeting frequent travellers with high spending power.
- In view of the increasing popularity of online sales in the
China Market, China Lilang paid extra attention to the development of the
E-Commerce channel. During 2012, China Lilang continued to make use of its
online sales platform to sell ‘Lilanz’ and ‘L2’ products.
- China
Lilang places great emphasis on recruiting and training quality personnel.
They recruit talents from universities and technical schools and provide
preemployment and on-going training and development opportunities to their
staff members. The training programs cover areas such as sales and
production, customer services, quality control, sales fairs planning,
workplace ethics and training of other areas relevant to the industry.
- China
Lilang continues to make every effort to strengthen the day-to-day control
over its sales channel. China Lilang embarked on developing software
systems with late 2009 for accessing the sales and inventory records of
each retail outlet online. By the end of 2012, all retail outlets except
those in department stores – were connected online. This enables the
company to obtain point of sales data accurately and in a timely manner so
that it can address specific problems promptly, and also help the research
and development of products meeting market needs better.
2. How does China Lilang plan on
further improving their sales and marketing profits and techniques?
- China
Lilang will continue to enhance its brand image and product design, and
improve the management of its retail channels and their
inventory. These measures will aim at consolidating China
Lilang’s leading position in the challenging market. The Group has geared
up for long-term and healthy development in order to realize
sustainable growth and reward its shareholders, employees and customers
for their support.
- In
2013, the objectives of China Lilang are to enhance the competitiveness of
its brands and ensure the viability of its sales channels. China
Lilang will also continue to invest in research and development
and strengthen its supply chain management to further improve
its product quality and produce products which are better value for
money to gear up for long-term development.
- In order
to provide the best services and products for consumers, China Lilang
will continue to arrange training on retail management for
distributors, and to allocate more resources to product research and
development. Specifically, it will add more staff for fabric research
and development and will strengthen cooperation with suppliers.
3. What are China Lilang's challenges are how are
overcoming these challenges?
- 2012 had been a challenging
year for the development of menswear industry in China. The debt crisis
facing by many of the world’s leading economies continued to cloud the
global economy and created great challenges for China’s economic
development. In the same year, China’s economy grew at its slowest pace in
13 years, easing to 7.8% for the year.
- China Lilang will continue to
set its pace for store opening according to market conditions. To reduce
the risk of excessive store expansion, China Lilang will not aggressively
increase the number of stores until there is obvious improvement in the
macroeconomic environment.
- Under such challenging economic
environment, sales channel management is more important than ever. During the
year, China Lilang conducted intensive training for the distributors and
their management teams. The training programs covered retail management,
franchise and chain stores business management, and methods of coping with
the dynamics of the changing market, in order to improve and enhance the
management of the retail channels.
- The unfavourable weather such
as a rainy spring and summer and a short autumn also significantly
decelerated the sales growth of menswear in 2012. The aggressive discount
offered by some of the menswear brands during the year impacted China
Lilang’s turnover. As a result, China Lilang cancelled some of the winter
orders after discussion with its distributors. In addition, the Chinese
New Year came in February in 2013, later than in 2012, and thus postponed
the festive shopping season. More winter products were delivered in
January 2013, affecting the sales of 2012. The overall performance was
below expectation.
- In 2012, China Lilang promptly
and prudently adjusted their operating strategy to cope with the abrupt changes
in the market. In view of the uncertain prospects, China Lilang revised
the ordering arrangement with the distributors earlier in the year and
duly adjusted its annual store opening plan as precautions to control
risks, in particular, to reduce the risk of overstocking in the sales channel,
and flexibly coped with market changes together with distributors.
Key concepts:
- China Lilang is dedicated to
providing new designs and high quality to our consumers, so as to enhance
its brand image and add value to its products.
- The slowdown of turnover growth
was attributed to the impact of the macroeconomic situation and weather
factors on the sales of China Lilang’s products.
- In spite of such a challenging
economic environment, China Lilang still attaches great importance to
brand positioning and the profitability of the distributors and thus
insists on maintaining a consistent pricing and retail discount policy.
- Turnover of “L2” for the year
went up by 50.5% to RMB194.1 million due to a low base figure for the
previous year.
- Despite the difficult business
environment, China will stay on track for economic growth and its
accelerating urbanization will continue to increase the people’s income.
These developments will support the steady growth of the country’s
domestic consumption. The demand for fashionable and branded high-quality
products will remain robust. As a leading business casual menswear
enterprise in China, China Lilang is still confident about the long-term
growth potential of the menswear industry in China.
- The improvement in the gross
profit margin was mainly attributable to China Lilang’s measures to
streamline supply chain including the selection of more cost-efficient OEM
suppliers, requiring more OEM suppliers to purchase from designated
fabrics suppliers and the change of suppliers’ payment terms. These
successfully reduced the cost of sales and improved gross profit margin.
During the year, stable raw material cost also helped to improve gross
profit and gross profit margin.
- Eastern China and Central and
Southern China regions, which were two main contributors of China Lilang’s
turnover, accounted for 52.9% of the total number of stores.
- One of the most valuable assets
of China Lilang are their brand names. Prominent brand image and unique
brand identity add value to the brand names and products of the Group,
which would help to consolidate the leading position of China Lilang in the
business casual menswear market in China.
- China Lilang believes that
product design and quality are the keys to a successful brand, and thus
always attaches great importance to product style and quality. Adhering to
this philosophy, China Lilang has committed to achieving excellence through
continuous research, design and development of new products over the
years, focusing on fashionable and simple style with innovative product
designs to become the trend-setter in the business casual menswear market
in China. In addition, China Lilang also strives to enhance the products’
value for money by improving the garment fabrics used in its products.
Key questions:
1. What
are China Lilang's strategies?
"As one of
the leading menswear enterprises in China, we strongly believe that a prominent
brand image is integral to our corporate core value as it enables the Group to
thrive in the rapidly changing market environment and withstand market changes."
– Chairman of the Board.
- During 2012, China Lilang launched various promotional activities to strengthen its brand imagine, including increased spending on advertising on CCTV during UEFA European Football Championship final tournament held in June and the Olympic Games held in July/August. To maximise brand exposure and enhance brand awareness, China Lilang also used billboard advertising at the Shanghai Hongqiao International Airport and the Bangkok airport in Thailand, targeting frequent travellers with high spending power.
- In view of the increasing popularity of online sales in the China Market, China Lilang paid extra attention to the development of the E-Commerce channel. During 2012, China Lilang continued to make use of its online sales platform to sell ‘Lilanz’ and ‘L2’ products.
- China Lilang places great emphasis on recruiting and training quality personnel. They recruit talents from universities and technical schools and provide preemployment and on-going training and development opportunities to their staff members. The training programs cover areas such as sales and production, customer services, quality control, sales fairs planning, workplace ethics and training of other areas relevant to the industry.
- China Lilang continues to make every effort to strengthen the day-to-day control over its sales channel. China Lilang embarked on developing software systems with late 2009 for accessing the sales and inventory records of each retail outlet online. By the end of 2012, all retail outlets except those in department stores – were connected online. This enables the company to obtain point of sales data accurately and in a timely manner so that it can address specific problems promptly, and also help the research and development of products meeting market needs better.
2. How does China Lilang plan on
further improving their sales and marketing profits and techniques?
- China Lilang will continue to enhance its brand image and product design, and improve the management of its retail channels and their inventory. These measures will aim at consolidating China Lilang’s leading position in the challenging market. The Group has geared up for long-term and healthy development in order to realize sustainable growth and reward its shareholders, employees and customers for their support.
- In 2013, the objectives of China Lilang are to enhance the competitiveness of its brands and ensure the viability of its sales channels. China Lilang will also continue to invest in research and development and strengthen its supply chain management to further improve its product quality and produce products which are better value for money to gear up for long-term development.
- In order to provide the best services and products for consumers, China Lilang will continue to arrange training on retail management for distributors, and to allocate more resources to product research and development. Specifically, it will add more staff for fabric research and development and will strengthen cooperation with suppliers.
3. What are China Lilang's challenges are how are
overcoming these challenges?
- 2012 had been a challenging year for the development of menswear industry in China. The debt crisis facing by many of the world’s leading economies continued to cloud the global economy and created great challenges for China’s economic development. In the same year, China’s economy grew at its slowest pace in 13 years, easing to 7.8% for the year.
- China Lilang will continue to set its pace for store opening according to market conditions. To reduce the risk of excessive store expansion, China Lilang will not aggressively increase the number of stores until there is obvious improvement in the macroeconomic environment.
- Under such challenging economic environment, sales channel management is more important than ever. During the year, China Lilang conducted intensive training for the distributors and their management teams. The training programs covered retail management, franchise and chain stores business management, and methods of coping with the dynamics of the changing market, in order to improve and enhance the management of the retail channels.
- The unfavourable weather such as a rainy spring and summer and a short autumn also significantly decelerated the sales growth of menswear in 2012. The aggressive discount offered by some of the menswear brands during the year impacted China Lilang’s turnover. As a result, China Lilang cancelled some of the winter orders after discussion with its distributors. In addition, the Chinese New Year came in February in 2013, later than in 2012, and thus postponed the festive shopping season. More winter products were delivered in January 2013, affecting the sales of 2012. The overall performance was below expectation.
- In 2012, China Lilang promptly and prudently adjusted their operating strategy to cope with the abrupt changes in the market. In view of the uncertain prospects, China Lilang revised the ordering arrangement with the distributors earlier in the year and duly adjusted its annual store opening plan as precautions to control risks, in particular, to reduce the risk of overstocking in the sales channel, and flexibly coped with market changes together with distributors.
Key concepts:
- China Lilang is dedicated to providing new designs and high quality to our consumers, so as to enhance its brand image and add value to its products.
- The slowdown of turnover growth was attributed to the impact of the macroeconomic situation and weather factors on the sales of China Lilang’s products.
- In spite of such a challenging economic environment, China Lilang still attaches great importance to brand positioning and the profitability of the distributors and thus insists on maintaining a consistent pricing and retail discount policy.
- Turnover of “L2” for the year went up by 50.5% to RMB194.1 million due to a low base figure for the previous year.
- Despite the difficult business environment, China will stay on track for economic growth and its accelerating urbanization will continue to increase the people’s income. These developments will support the steady growth of the country’s domestic consumption. The demand for fashionable and branded high-quality products will remain robust. As a leading business casual menswear enterprise in China, China Lilang is still confident about the long-term growth potential of the menswear industry in China.
- The improvement in the gross profit margin was mainly attributable to China Lilang’s measures to streamline supply chain including the selection of more cost-efficient OEM suppliers, requiring more OEM suppliers to purchase from designated fabrics suppliers and the change of suppliers’ payment terms. These successfully reduced the cost of sales and improved gross profit margin. During the year, stable raw material cost also helped to improve gross profit and gross profit margin.
- Eastern China and Central and Southern China regions, which were two main contributors of China Lilang’s turnover, accounted for 52.9% of the total number of stores.
- One of the most valuable assets of China Lilang are their brand names. Prominent brand image and unique brand identity add value to the brand names and products of the Group, which would help to consolidate the leading position of China Lilang in the business casual menswear market in China.
- China Lilang believes that product design and quality are the keys to a successful brand, and thus always attaches great importance to product style and quality. Adhering to this philosophy, China Lilang has committed to achieving excellence through continuous research, design and development of new products over the years, focusing on fashionable and simple style with innovative product designs to become the trend-setter in the business casual menswear market in China. In addition, China Lilang also strives to enhance the products’ value for money by improving the garment fabrics used in its products.
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