Seven Wolves: Relying On Channel Expansion To Achieve Rapid Growth

In the first half of the year, the seven wolves achieved a total revenue of 844 million 742 thousand and 100 yuan, an increase of 151.6% over the same period last year, and realized a profit of 116 million 102 thousand yuan, an increase of 150.98% over the same period last year, and a net profit of 85 million 298 thousand and 600 yuan, an increase of 190.45% over the same period last year.

Companies rely on the rapid expansion of channels to achieve a leap in performance. The expansion of franchise channels also makes the company's inventory turnover speed faster.

Under the rapid growth of the domestic clothing consumption market, we continue to give the company highly recommended rating.

There are several reasons for the substantial increase in company performance.

First of all, companies rely on channel expansion to achieve rapid growth.

In the first half of 2008, the company added 392 new terminals, representing an increase of about 20% compared with the end of 2007 (1976).

With the rapid expansion of sales channels, the company achieved a total revenue of 844 million 742 thousand and 100 yuan, a profit of 116 million 102 thousand yuan and a net profit of 85 million 298 thousand and 600 yuan in the first half of the year, representing an increase of 151.6%, 150.98% and 190.45% respectively over the same period last year.

Secondly, the company's expansion of channel quantity and the improvement of the quality of single business ensure the company's performance growth.

The company's revenue per channel in 2007 was about 3759 yuan per square meter, down 4.52% from 2006.

In the first half of 2008, the single area income was about 4135 yuan / square meter, an increase of 10% over the same period last year, and the quality of monomer business has improved.

Although the quality of the company's channel monomer is increasing less than the speed of the expansion of the channel (it is expected that the sales channel area will increase by 100% in 2008 compared with that in 2007), the company's channel has been expanding rapidly, which has benefited the company in recent years.

Thanks to the expansion of affiliate sales channels, the company's inventory turnover speed has also been accelerating.

In the first half of 2007, company inventories accounted for 81.4% of the operating cost, accounting for 54% of the operating cost at the end of 2007, and the proportion of the company's inventory accounts for about 19% in the first half of 2008.

In addition, the growth rate of the domestic clothing consumption market 20% supports the rapid growth of the company's performance.

According to the statistics of the China National Business Information Center, the retail sales of domestic textile and apparel commodities increased by more than 25% in the first half of 2008, of which the increase in clothing was about 20.75%.

The high growth domestic market has provided a better stage for the company. As a famous brand of domestic casual wear, the company will rely on channel expansion to achieve rapid development.