Price Competition Intensified, Giordano Sales Fell Seriously

< p > Giordano announced sales of HK $5 billion 673 million in 2012, an increase of 1% over the same period last year, with sales of HK $1 billion 898 million in mainland China, a decrease of 6% over the same period last year, while sales in Hongkong and Taiwan were flat compared with the same period last year. Sales in other parts of the Asia Pacific region (mainly Singapore, Malaysia, Indonesia and Taigu) increased 7% over the same period last year.

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< p > sales decline in mainland China. Giordano believes that as the 2012 Lunar New Year is earlier than that in 2011 and 2013, sales of accounting decreased significantly in 2012 compared with 2011. This effect has a greater impact on the delivery time of franchised stores and imposed restrictions on the growth of stores' stock, thereby reducing the stock of franchised stores by HK $78 million.

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< p > because of price competition and general demand decline, the "a href=" http://sjfzxm.com/news/index_f.asp "brand sales" of the self run store decreased by 5% in the second half of the year, but increased by 4% in the first half.

The retail atmosphere in mainland China has weakened, and the number of people in shopping malls and department stores has decreased. Meanwhile, new competitive brands are coming.

Sales in the third quarter were particularly weak, including sales during the National Day golden week. In the fourth quarter, a href= "http://cailiao.sjfzxm.com/matertial/show/default.aspx" > Sales < /a > volatility was highly dependent on weather conditions, but recovered slightly compared with the third quarter.

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< p > in terms of online sales, sales in 2012 amounted to HK $145 million, an increase of 25% over the same period last year, benefiting from the development of online promotion activities, which increased from 17% in the first half to 32% in the second half.

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< p > in 2012, the number of stores in mainland China decreased by 129, including 11 self operated stores and 118 franchised stores.

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< p > Giordano's gross profit margin increased by 0.2 percentage points to 58.7% in 2012, and gross profit was HK $3 billion 331 million, an increase of 1.5% over the same period last year.

Cotton prices have lagged behind the cost of sound field, resulting in a significant increase in the price of suppliers during the year.

In addition, the appreciation of the renminbi against the Hong Kong dollar and the continuous rise in wage costs resulted in an increase in the cost over last year. This increase has been reduced from the first quarter to the fourth quarter.

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In 2013 P, Giordano will maintain healthy inventory level, low operating costs and continuous down production costs.

In terms of store development, < a href= "//www.sjfzxm.com/" > Giordano < /a > continues to expand in Beijing, Shanghai, Guangzhou, Wuhan, Shenzhen and online stores.

At the same time, we should focus on franchised outlets.

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