Mainland Shoe Market Is Strong! Surplus Potential

The world bank is optimistic about the strong domestic demand of the East Asian economies. It is likely to absorb the impact of the credit crisis and high oil prices. China's domestic demand has continued to expand, and has become a driving force for regional growth, and will increase China's economic growth target from 9.6% and 8.7% to 11.3% and 10.8% respectively this year and next.

The appreciation of the renminbi is expected to boost China's domestic consumption power, which is beneficial to the stock price of China's domestic demand stocks.

For example, in the mainland, Hong Kong and Taiwan, we are engaged in the design and sale of casual shoes, business casual shoes and sports shoes, and 1386 of them have 350 outlets.

289 of them are located in the mainland, with six self created brands and two authorized brands.

The company has a wide range of products and the average selling price is 280 yuan.

The mainland market accounts for 53% of the group's total revenue this year. With the continuous growth of the mainland's consumption capacity, 330 sales outlets will be set up in the mainland next year.

Some analysts believe that as urbanization and young people enter the service industry in large numbers, footwear products will become an important item in their shopping for non essentials.

Even if China's economy can not maintain its two digit growth this year, consumer spending will still be quite strong.

The number of shoes purchased by mainland consumers will reach the level of developed countries. UBS estimates that the volume of the mainland shoe market in 2010 will reach 12 billion dollars, and the number of shoe purchases per person will be 2.2 pairs.

According to DBS estimates, the expansion of surplus retail outlets is faster than the bank's initial estimate. Franchising and Acupuncture's authorized operation will increase in the second half of 2008, plus expansion of sales outlets and profit margins. Earnings growth will exceed 40% in the first half of next year.