Our Growth Strategy

Brand-building initiatives

Hongguo is charting a three-pronged strategy to achieve the targeted growth of every year:

• Building brands, enlarging product range and improving retail penetration
• Building OEM business and ride on global outsourcing trend
• Building international partnerships

Hongguo is embarking on the following brand-building initiatives:

• Strengthening brand image and positioning of our two brands in their respective market segments to be able to compete effectively against other brands, foreign and local, operating in China
• Extending our product range beyond ladies' shoes. We have added a small range of accessories such as ladies' bags, which will be expanded further.
• Growing our retail outlets and expanding into second and third-tier cities to tap the unrealized potential while setting up more flagship stores in the first-tier cities.
• Improving merchandising and product displays while using traditional tools of advertising and marketing.
• Balancing our logistics, geographical spread and distribution mechanics to avoid cannibalisation of brands and improve retail efficiencies.
• Preventing copyright infringement of our brands and add to brand uniqueness by design innovations and improving delivery schedules to hasten speed-to-market.

OEM initiatives

Hongguo is embarking on the following OEM manufacturing initiatives:

• Improving cost-efficiencies and quality standards to improve volumes from existing customers like Nine West and Colorado
• Leveraging the brand-equity and endorsement of foreign brands like Nine West and Colorado who use us as outsourcing vendors to grow our OEM business
• Enhancing design capabilities to value-add and improve margins in the OEM business
• Increasing capacity for outsourcing both at Dongguan and Nanjing and improve utilization rates

Global alliances initiatives

Hongguo will embark on the following initiatives to build international partnerships:

• Entering into joint-ventures or distributorship arrangements with overseas partners to distribute foreign brands in the local market
• Improving our retail management practices
• Enlarging our brand portfolio and product range with the international alliances