NO.139

Stick to Set Target to Make Resolute Progress Report on Wuxi Commercial Mansion Special Topic Business Analysis Meeting
ReleaseDate: 2009-10-01

On October 25, Wuxi Commercial Mansion Grand Orient Co., Ltd held a special topic business analysis meeting. At the meeting, all procurement and supply departments, subsidiaries and functional departments made quantitative and qualitative analysis and study on business operation in the first three quarters and holiday periods, and objectively analyzed the opportunities and challenges faced by “Grand Orient” amid the general background of global financial crisis. This time’s analysis meeting brought us much new information:

I. Brand association effects are becoming increasingly obvious. According to data analysis of Mansion member card operation, the percentage of member card consumption in overall sales of “Grand Orient” was only 4% on average before 2006, but soared to above 44% in the first three quarters of this year. Analysis showed that, member cards buying “NIKE” brands immediately purchased “ADIDAS”, “KAPPA”, “LI NING”, “CHOW TAI FOOK” and other branded products, whereas member cards purchasing “LANCOME” also continued to buy “NIKE”, “ADIDAS”, “E-LAND” and other branded goods. Obviously, the concept of stressing associated brand operation proposed by the General Manager’s Office was showing effects.

II. Opportunities and challenges brought by global financial crisis. Analysis showed that, the impact of global financial crisis on general merchandise retailing industry could even be felt in cities like Wuxi, for instance, some international luxury brands canceled or postponed their plans to enter Chinese market owing to capital or other reasons, some even pushed the plan to open shop in Wuxi to 2010. For “Grand Orient”, this posed both challenges and opportunities, doing a good job of running internationally famous brand shops already opened or soon to be opened would enable “Grand Orient” to move one step ahead of others and grasp the initiatives.

III. Higher awareness on cost and benefits. The phrases most frequently mentioned at the Analysis Meeting were Return on Asset, Gross Profit Margin, Unit Price of Each Customer etc. In the first three quarters, sales increase was relatively evident, but there was also the unsatisfactory condition of the growth of gross profit margin being lower than the growth in sales. After analyzing the reasons, the meeting participants suggested many counter measures, especially they stressed the need to heighten sense of crisis, awareness of cost and awareness of frugality, to lose no time studying sales measures for brand promotion, and go all out to ensure fulfillment of this year’s economic indexes for the whole year.

The Analysis Meeting lasted more than 4 hours; President Pan granted full affirmation on the results of the meeting. She pointed out that, all departments must earnestly digest the spirits of the Special Topic Analysis Meeting, promptly follow up and resolve already discovered problems, to ensure the uncompromised fulfillment of this year’s business target. She stressed that, it was imperative to look at the market in China in general and Wuxi in particular from a global perspective, no matter what happened in global economic situation, we must “stick to the target in view”. The pre-determined strategic targets of the enterprise was very already quite clear, sticking to “developing regional power”, striving for long lasting continuity, building up a sustained enterprise, these were the historic missions of each “Mansion employee”. At present, the polarization trends of consumption market was obvious, the middle end marketing route would face increasing difficulties. “Grand Orient” must adhere to the orientation of modern general merchandise operation determined after adjustment and renovation; correctly handle the relation between output and investment, between the present and the future, in order to become a winner with healthy existence and enduring continuity in the changing global economic environment.