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Opening of Six PurCotton Chain Stores in Shenzhen
21
Apr '10
Winner Medical Group Inc. a leading manufacturer of medical dressings, medical disposables and non-woven PurCotton materials for the medical and consumer products industries, announced that since January 1, 2010, it has opened nine PurCotton chain stores, and an additional eight new stores will be opened by the end of April in Shenzhen, Guangdong province, China.

In December 2009, Winner's subsidiary Winner Industries (Shenzhen) Co., Ltd. established a wholly owned subsidiary, Shenzhen PurCotton Technology Co., Ltd. to develop sales channels in the China marketplace and sell its PurCotton branded products. PurCotton is a non-woven fabric made with 100% natural cotton products. PurCotton promotes the concept of "Let medical products close to your life, Let pure cotton take care of your health." Using PurCotton patented technology, the company develops many healthy, comfortable, safe and environmentally friendly daily care and home living products.

PurCotton products are classified into four main categories: baby personal products, feminine personal products, daily home care products and medical care products. The raw materials of all PurCotton products are imported from the United States, are natural cotton and additive-free. The average total cost of each store, with sizes ranging from 50 to 100 square meters, is approximately $40,000 to $60,000, which includes the lease, build-out, one month's salary for salespeople and inventory stocking.

PurCotton enters into a niche market by promoting medical products for daily use. The main distribution channels will be chain stores (PurCotton stores), on-line sales, supermarkets and wholesales to large customers, while promoting the concept of high quality life by using pure cotton products. PurCotton stores are mainly located in downtown shopping malls and high-end communities with high visibility and significant foot traffic. Shenzhen PurCotton Technology Co., Ltd. employs professional retailing and brand building consultants to advocate the concept of a healthy life.

On April 15, 2010, Winner Medical entered into an employee agreement with Mr. Zihan Wu, who was appointed general manager of Shenzhen PurCotton Technology Co., Ltd. Mr. Wu graduated from Wuhan University with majors in Economic Management and Computer Science. He has solid experience in Internet and media businesses from when he was a partner of Shanghai Angel Venture Capital Management Company. Mr. Wu's strong e-commerce experience will assist the Company's efforts in building PurCotton business-to-consumer online stores in order to better meet consumer's diversified shopping requirements.

Winner Medical Group Inc

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