Despite a difficult and challenging economic environment, women’s footwear retailer C.banner International Holdings reports a steady performance for the six months to June 30.
It managed to increase total revenue by 6.1 per cent to about RMB1.5 million (US$224,570). Gross profit increased 2.2 per cent to RMB908.5 million while gross profit margin and net profit margin were 60.4 per cent and 6 per cent respectively.
Meanwhile, the profit contributed by toy brand Hamleys, acquired last year, is expected to boost the group’s annual performance.
C.banner chairman Chen Yixi says Chinese enterprises have been encouraged to invest overseas through the new “One belt, one road” strategy launched the by the government, and Hamleys was acquired to gain a head start over competitors.
He says the first Hamleys flagship store is planned to open in Nanjing in October.
Revenue from toys for the half-year reached RMB 241 million – 16 per cent of the group’s total revenue. Meanwhile, revenue from retail and wholesale sales of shoes fell 11 per cent to RMB1150.5 million, mainly because of a 12.4 per cent drop in same-store sales and the closure of inefficient outlets.
Revenue from contract manufacturing of shoes dropped 10.1 per cent to RMB111.4 million, mainly attributed to reconstruction of the group’s OEM production lines.
During the six months, the group closed 21 proprietary retail outlets and 11 third-party outlets. This gives it a network of 1711 proprietary outlets and 456 third-party outlets across China.
Meanwhile, the company is focussing on innovative services, including customised 3D foot- scanning in selected stores. It is also building a new factory store mode, and implementing interactive marketing strategies through online platforms like JD.com, Tmall and WeChat.
Launching this year is a mid-premium women’s footwear brand, Badgley Mischka.
C.banner says it grasps the enormous potential of the toys industry arising from China’s second-child policy, and has established a dedicated team to develop the Hamleys business in China. Hamleys-themed shopping malls are planned for Beijing, Shanghai and Xuzhou next year, as well as expansion into tier-one cities.