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Winner Medical expands marketing efforts for PurCotton

19
Nov '09
Winner Medical Group Inc. announced plans to launch its Company-owned PurCotton branded products and to construct sales channels in China.

PurCotton is 100% cotton nonwoven material, for which the Company has its unique patented manufacturing technology. It is comfortable, safe, and healthy, which makes it ideal for medical, health care, and daily home care products. The Company will develop finished functional products made by PurCotton, and plans to launch these products mainly through Company-owned PurCotton concept chain stores.

The high profile chain stores will be located in densely populated commercial and residential communities, with high visibility and foot traffic. Stores will cater such consumers who prefer high-quality products made from Winner Medical's PurCotton. Each store will contain a broad range of PurCotton branded personal products and healthcare supplies. Stores will be staffed by a total of eight to ten employees running two shifts. The total projected cost to open each initial pilot store will be approximately $80,000 to $100,000, including securing the lease, build-out and inventory stocking. The Company expects to open its first two or three stores in Shenzhen by January 2010. If the operating metrics of the stores show feasibility, the mid-term plan will be to launch the Company's own stores or joint ventures in several geographic areas to open multiple locations.

Winner Medical has retained an experienced, reputable, and extremely well known consulting firm to implement a marketing strategy for the promotion and sales channels construction of its PurCotton branded product. This firm successfully designed, launched and marketed several famous brand names in China, including Wanglaoji, one of the leading canned drink manufacturers in China, Huiyuan, one of the largest fruit juice manufacturers, and Tasly, a manufacturer of modern TCM, biological medicine, and functional foods.

Jianquan Li, Chairman and Chief Executive Officer of Winner Medical, commented, "We are extremely pleased to announce this initiative which underscores our strategy to significantly grow our domestic China business focused on higher margin PurCotton branded products. We will be the first to market with a concept store specifically focused on offering customers a broad range of disposable, daily use products which will simplify their shopping experience. We will prudently manage this marketing strategy while controlling investment risks through staged store openings."

Winner Medical Group Inc


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