Xtep to further enhancing brand recognition

06 Apr '09

4 min read

During the year under review, Xtep brand remained the Group's main driver of revenue and the revenue of Xtep brand increased by 117.3% over last year to approximately RMB2,606.2 million (2007: RMB1,199.2 million). The revenue from Xtep brand's footwear products and apparel products increased by 84.8% and 164.5% respectively, to approximately RMB1,340.6 million (2007: RMB725.3 million) and RMB1,215.5 million (2007: RMB459.6 million) respectively. Xtep brand's increasing recognition has led to the rise in retail price and average selling prices of Xtep brand footwear and apparel products, in which average selling price of footwear and apparel products grew by 5% to RMB73.2 (2007: RMB69.6) and by 7% to RMB56.4 (2007: RMB52.5) respectively.

In addition, economies of scale and effective cost control have enabled the Group to maintain costs at a stable level. As a result, the gross profit margin of Xtep brand footwear and apparel products rose to 35.6% (2007: 34.5%) and 38.1% (2007: 34.4%) respectively.

To manage its extensive retail network nationwide efficiently, the Group has formulated a stringent distributor management system and endeavored to strengthen the retail network management. The Group implemented a distribution resource planning (“DRP”) system to record and track inventory levels of products at certain retail outlets operated by the distributors and third-party retailers. As at 31 December 2008, the DRP system covered approximately 50% of the Group's distributors.

Click here to read more details:

Xtep International Holdings Limited