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1. Overall Strategies
For the retail division, we plan to systematically open various concept shops that offer and deliver an array of high-quality, and highly sensitive products.
establishment and penetration of each brand, while reviewing sales channels and building an efficient sales system.
2. Retail Strategies
| (1) |
We strive to increase the percentage of SPA products and thereby improve our gross margin rate. |
| (2) |
We do not confine ourselves to developing shops based on only one concept, but rather we systematically roll out shops of various genres. |
| (3) |
We continuously pursue and develop new types of stores.
(cf. KU, Huntington Garage, etc.) |
| (4) |
Approach to shop location
We open concept shops primarily in big cities with populations of 1 million or more.
As for AVIREX, we open shops mainly in regional hub cities with populations of 500,000 or more, as well as in big cities. |
| (5) |
For underperforming shops, we implement appropriate measures such as changing shop styles or divesting them on a scrap and build basis. |
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〔Shop Opening Plan〕
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50th Year |
51th Year |
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Ended August 31, 2005 |
Ended August 31, 2006 |
| AVIREX |
1 |
|
| B'2nd |
1 |
1 |
| BEAVER |
1 |
1 |
| Huntington Garage |
1 |
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| ROYAL FLASH |
1 |
1 |
| KU |
1 |
|
| L.H.P. |
|
2 |
| Total |
6 |
5 |
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3. Wholesale Strategies
| (1) |
With our four licensed brands of AVIREX, KU U.S.A., Schott, EVERLAST, at the core, we develop medium- and long-term strategies by brand through our brand manager system that encompasses all brands, promotes retail sales, wholesale sales, planning, and PR activities in a comprehensive manner. |
| (2) |
We conduct sales efficiently by clearly defining brand concept, target, and distribution channels for each brand. |
| (3) |
Based on real-time market information obtained from company shops, we make proposals to wholesale partners regarding planning and sales. |
4. Overseas Strategies
In the developing Asian region, Shanghai, Taipei, Hong Kong, and Seoul are places of utmost interest, as they seem to have the highest potential as apparel markets.
We are now conducting a feasibility study to underpin the business potential of the brands we currently hold in these areas.
Although the decisions regarding which store types will be introduced have not yet been made, we intend to produce tangible results in three years.
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