Sales hit RMB4 billion at China Dongxiang
Chinese sportswear brand China Dongxiang posted a 19.5% sales increase in 2009. Sales for the year totalled RMB4 billion ($585.8 million). Profit rose 23.4% to RMB2.4 billion.
Chairman, Chen Yihong, said: "2009 was a year of opportunities and challenges for China's sportswear market. With further accelerated urbanisation in China and rapidly growing spending power in second- and third- tier cities, coupled with enhancing awareness and increasing spending of consumers in the aspects of health, leisure and sports, the entire sportswear industry is blessed with expansion momentum. In the face of a complex market environment in 2009, China Dongxiang has delivered satisfactory achievement by making full use of the management's understanding and insight of the PRC sportswear market, and by exercising effective control over the distribution channel and supply chain."
The Kappa brand business the group’s main business, accounted for 85.5% of its total China sales for the year. Sales of Kappa Brand products in China rose 21.1% to RMB34 billion. Apparel was the major product, representing 75.9% (2008: 71.8%) of the brand's total sales. The proportion of footwear and accessories were 20.1% (2008: 23.9%) and 4% (2008: 4.3%), respectively.
Mr Chen added: "In light of vivid economic development in China, we are confident of the medium- to long-term prospects of the sportswear market in China...We believe that China's sportswear market is set to gear towards new heights."
