The business improved as scheduled: Consistent with our previous survey results, the company’s brand operations have gradually experienced some positive phenomena since the fourth quarter of 2009: Stores purchased and leased from marketing network construction projects have been put into operation one after another, and sales revenue has been realized on schedule; Meters/ The bonwe division gradually matured, and the revenue of comparable stores continued to increase. The ME&CITY division continued to strengthen brand building, improve product quality, and rationally adjust marketing strategies. The performance of terminal retail has improved. In the fourth quarter, under the efforts to effectively control the proportion of various expenses, net profit in 2009 can finally achieve a slight increase. Franchise stores have been effectively promoted. In 2009, franchisees' sales and opening conditions were not satisfactory. In the fourth quarter, the company adopted many ways to stimulate franchisees, such as props, new store support, credit support, etc., which led to an increase in sales of franchise systems. Some franchisees The intention of opening a store has also appeared in a positive state. At present, it is estimated that there have been nearly 200 store openings in 10 years. We believe that the expansion of the ten-year joining system can be sustained and will effectively boost the company's revenue growth. Strictly controlling costs is an important task. In 2009, due to the opening of a number of new stores, the company has brought about a problem of excessively high costs: One-off spread of hundreds of stores, the cost and profit time did not match well; the speed of building new brand stores was delayed, and the income progress was achieved. Not in line with expectations; the labor costs for the construction of stores and headquarters have also greatly increased. Accompanying the company's understanding and resolution of this issue, the future will be more reasonable in the expansion plan of the store, and the company will also strictly control the cost as one of the top priorities for 10 years. As the ten-year direct-to-operate store's deferred expenses are relatively fixed, along with the increase in income, the fee rate will decline. 10 years is expected to be the breakthrough year for Me&City. In 2009, Me&City had many mistakes in its strategy. However, under the support of a powerful marketing network and operation platform, and in line with the company’s outstanding integrated marketing and promotional capabilities, continuously improving design capabilities, continuously improving product quality, and more reasonable development strategies, it is expected to achieve break-even breakthrough in 10 years. . At the same time, the company will also introduce franchisees as a channel for new brand development, and its progress is worthy of attention.
The business improved as scheduled: Consistent with our previous survey results, the company’s brand operations have gradually experienced some positive phenomena since the fourth quarter of 2009: Stores purchased and leased from marketing network construction projects have been put into operation one after another, and sales revenue has been realized on schedule; Meters/ The bonwe division gradually matured, and the revenue of comparable stores continued to increase. The ME&CITY division continued to strengthen brand building, improve product quality, and rationally adjust marketing strategies. The performance of terminal retail has improved. In the fourth quarter, under the efforts to effectively control the proportion of various expenses, net profit in 2009 can finally achieve a slight increase.