We are one of the leading menswear brands in China. According to Frost & Sullivan, as at the year ended 31 December 2007, LILANG brand ranked top among menswear brands in China in terms of total sales. In 2007 and 2008, Lilang China was selected as one of the China Potential Enterprises by Forbes Chinese edition. As a comprehensive fashion enterprise, we design, purchase, produce and sell quality men’s business and casual suits. Established in 1995, we grew rapidly in recent years.
We provide customer with high-end fashion design for different seasons under LILANG Brand. The products provided by Lilang include suits, jackets, shirts, trousers, sweaters and accessories, which can be principally classified as business formal, business casual, fashion casual and sports series. Since we launched Lilang business casual series, this segment has developed rapidly and become China superior famous brand.
We design products by ourselves under the instruction of China renowned fashion designer Mr. Ji Wenbo, who has over 20 years experience in fashion filed. Our design and products development team also closely cooperate with suppliers and distributors for product development and design. We seek to start a new trend and style for menswear. We are confident that we can bring extraordinary value to the customer with a series of apparels embodying simple yet sophisticated life style. We aim to advocate our brand philosophy through our products, whereby customers can resonate in a life style choice.
We sell our products through extensive distribution network throughout 31 provinces in China. After we sell products to distributors, the distributors then sell our products to end customers through retail stores of themselves or their second tier distributors. Such retail stores shall only sell LILANG brand products. In order to maintain uniform brand image in distribution network, we made unified standard for store display, marketing campaign and daily operation in operation manual to which distributors and their second tier distributors shall comply. We are confident that our extensive and comprehensive management distribution network has helped us building unified brand image and enhanced our market penetration. *--+++-
While expanding our distribution network, we planed to open three to five flagship stores in main cities of China. The business area of such flagship stores would be significantly larger than that of existing stores of our distributors. We believe our new flagship stores enable us to directly contact end customers and receive real time feedback regarding the products. Moreover, our new flagship stores could enhance our product image by showing all product series, promoting sales of our distributors and their second tier distributors. Our distributors will also open their own flagship stores according to standard of our flagship stores in the main cities within their sales district.
We have established our brand through national advertisement campaign. We believe Mr. Chen Daoming, our television advertisement endorser and famous actor, can represent the life philosophy “simple yet sophisticated”. We also published advertisement in fashion magazines and product categories. We have been using the slogan “simple yet sophisticated” throughout the advertisement campaign, for the purpose of enhancing our brand image and expressing the life style which the brand is trying to embody. Recently, we started to participate in various international fashion shows, especially, we were invited to participate in Milano Moda Uomo in 2007. In our opinion, our marketing and promotion strategy, as elaborately designed by us, would enable our brand and products to reach major target customers. Meanwhile, we also believe regular exhibition in renowned fashion week could enhance our brand reputation and strengthen our brand image. In 2007, our LILANG brand was awarded as Chinese Well-know Trademark in garment industry.
Most of our garments are produced in our own plants in Jinjiang, Fujian. Our outsourcing production includes accessories and certain garments production. By integrating internal production and outsourcing production, we believe we can timely satisfy the demand in a cost effective manner. Quality is the priority of our consideration. Our quality management team supervises every phrase of the production procedure. In the meantime, we closely cooperated with outsourcing producers to ensure all garments and accessories to meet quality standard.