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(2008-05-05 09:50:24)






Distribution channel



 works closely with its partners, both international and domestic, to assure a clear and consistent product presentation.  International wholesale represented more than 90% of their total sales.



International wholesale: currently serves the following export markets: the United States, Europe, Japan, Korea, and South East Asia.  This channel represents sales to international wholesale distributors and authorized retailers. The American and European markets represent 70% of total sales.continues to improve productivity in this channel by developing more distributors.




Domestic wholesale: This channel offers products to Chinese consumers through regional dealers.  There are about 50 entities in three regions.  They are Shenyang-based Northeast region dealers; Chengdu-based Middle-south region dealers; and East region dealers.




Department stores in China also play an important role as a distribution channel.  Department stores continue to increase square footage for it’s fine leather products.                                                             continues to enhance presentation, primarily through the creation of showroom with live characters, which drive the growth of sales tremendously. The showroom is very unique.  It is designed as a living space with furniture, clothes, and small decorations. A female live character (you mean it’s a real person who works there, right?) will live in this space to show an outstanding life style.  The company has a plan to add one male live character in the living space to express a family life.  This showroom will tour in major cities in three big marketing regions and some cities that the company will develop new markets.  



Retail stores: now has one wholly-owned retail store, located in Zhongshan, Guangdong province, a city of TK people (population?).The store, with modern design, creates a distinctive style to display the products.Store associates are trained to maintain high standards of visual presentation,merchandising and customer service.                                                                                                            plans to open more retail stores in China in coming years.



Internet sale: In 2008, set up its own website to extend its distribution channel and build brand awareness.  Its website provides a showcased environment where consumers can browse through a select offering of the latest styles and colors.  This online distribution has helped create easier access for additional group of customers that live in regions of China with no dealerships. There were more than 40,000 unique visitors to the website as of March, 2008. (I’m still waiting for the information on the amount of sales)  

网络销售:为打开销售渠道树立品牌意识,2008年,我们开同了自己的网站(www.leather.com)。提供了一个展示环境,在这里客户可以浏览选择最新的款式和颜色。这种模式增加了客户的流量,2008 年3月已经超过40,000人次。


Leather basically manufactures two main leather products, wet-blue leather and leather embryo. Wet-blue leather have very high profit margin with a high entry barrier. Sophisticated echnology and capital are both needed to enter to tannery business. Capacity in China is now inadquate to meet demand.  Therefore, there is now a strong market for wet-blue leather. Some of the wet-blue leather is produced to be leather embryo. Leather embryo are sold to either wholesale purchasers or used by another                                                                                                           factory,  Leather. Leather manufactures semi-finished goods. Its products are very attractive due to high quality at international standards and competitive price. The products are mostly sold through international and domestic wholesale distribution and a small portion supplies another factory, wear Industrial Co., Ltd. Leather manufactures suitable leathers to meet the need of various customers via testing and creating unique textured leathers for requirements. Has built business with Calvin Klien, Fossil, Michael Kors, among others. Leather’s capability of producing wet-blue leather and leather embryo provides Leather sustained quality of leather.  Furthermore, advanced technology and abundant experience make Leather more appealing in terms of quality.  

Leather生产蓝湿皮革和皮革初级产品。由于准入壁垒较高,技术含量高,投资大等因素的影响,蓝湿皮革利润很高。目前国内市场供不应求,因此蓝湿皮革市场较大。一些蓝湿皮革是皮革初级产品的原料。 然后把蓝湿皮革卖给采购商或者其他的皮革厂。它也生产半成品。由于按照国际标准生产,价格具竞争力,在市场上很受欢迎。其产品,大部分在国际市场和国内市场上销售,小部分卖给wear Industrial 公司。Leather公司生产产品适销对路,结构独特,经过不同消费者的检测,适应消费者的要求。已经同Calvin Klien, Fossil, Michael Kors以及其他的客户建立了业务关系。Leather生产蓝湿皮革和皮革初级产品的能力已经提供了质量保证。还有,先进的技术丰富的经验使得皮革产品质量上乘。,










Possesses abundant technology, research and development, and design capability specifically for leather products and fine leather goods. Product Design and Development Center was completed and the Leather Coating Research and Development Center was built in Zhongshan. research and development efforts go toward developing various textures, colors, styles of finished leather and to improve overall environmental protection during production. This makes the company more competitive to customers demand, market trend, and conceptual design. 



The manufacturing of  animal hides into wet-blue leather and to leather embryo is high-margin production process.  However, it is not a business that is easy to enter in China because of large capital input, the need to establish raw material supply from the US, and the increasingly stiff environmental regulations in China that govern leather productin.has accumulated systematic technical skills in leather production industry through many years of experiment and experiences. 



In its technical teams, has senior engineers from leather research institute, many experienced engineers from Korean leather manufactory in Shandong province, and engineers from Sichuan Leather College.The manager of  Leather was the former    manager of Hebei Leather Manufactory. has received ISO9001:2000 Authentication Corporation and leather industry ISOC Member Corporation.  Quality Control staff inspect the quality of incoming materials, online production, cleaning, until packaging.  Before packaging, inspectors examine the products again and random tests are done after packaging to ensure product quality.

技术方面,我们拥有皮革研究方面的高级工程师,许多山东韩国企业的经验丰富的工程师,以及四川纺织学院的工程师;经理是河北皮革厂的前任经理。公司通过ISO9001:2000认证;是 ISOC成员企业。质量监测整过生产过程,直到包装,在包装是也要进行随机抽查,确保产品质量。









Low labor cost: leather manufacturers have similar production processes worldwide;                                                                                              Chinese-made leather products are indistinguishable, in terms of quality, from the highest-quality Italian-made leather products.with its low labor costs compared to Europe, has gained great competitive advantage.



Right products and right customers: products from different regions have their own absolute advantages compared to others. (Any examples of this? Do you mean regions in China, or this is comparison of China and Italy,Spain,Korea?) has chosen the right products to develop and manufacture for certain customers to make it more competitive.



Rational allocation of resources:                                                                                                           is highly efficient in its production process, minimizing waste.  Therefore, cost is reduced and profit is maximized.



High profit production segment: the manufacturing process from cow hides to wet-blue leather is the most profitable segment in leather industry.  The manufacturing period is about 10 days and the margins are about 10%.  There is a high entry barrier in this segment.  First, the manufactural and managerial authority is not easy to obtain in China.  Second, without large capital, technology, and sewage treatment systems, this business is difficult to run.  In addition, there is more potential for profit increase, because of increasing market demand and constraints on supply.



Lower tax rate: as an agricultural by-product, fur-skins are taxed by the Chinese government at a rate of 13% compared to industrial products with a tax rate of 17%.



Material and style: fine leather goods are made out of leather with great quality and its appealing European fashion style attracts consumers in Europe, US and increasingly the domestic market in China.







The company’s business model has evolved as the company responds to market trends and increasing consumer demand for greater variety at lower cost. 



Our research and strategic evaluation indicates a strong potential for long-term                                                                                                           for this company.The foundation for that long-term has already been created, with a vertically-integrated business model. The company operates in all three segments of the industry: leather manufacturing, leather finishing, and fine leather goods.



In fine leather goods manufacturing segment, the company sells 90% of its products to the international market and the remainder to the Chinese domestic market.The company distributes domestic market through three (the usual rule in English is that you write out any number from one to ten, and above ten, you use the number) regional dealerships and a total of 50 dealers.  The company will continue to utilize its existing global distribution infrastructure to capitalize on the potential to achieve significant growth in volume and revenue in the least amount of time with the minimum additional investment in equipment and personnel. This part of business will be conducted by wear Industrial Co., Ltd.

在高级皮革生产阶段,公司90%的产品销售到国际市场,国内市场占10%的份额。国内市场主要通过三个销售区的50个经销商来进行。公司会继续利用国际现存全球分销结构的资本化潜力来实现销售额的大副提高,用最小的设备和人力投入使公司收入提高。这部分计划将由wear Industrial 公司来实施。



Secondly, the company operates in the high-margin leather fabric and products segment. The company offers semi-finished product to many wholesale purchasers.These wholesale purchasers do not choose to operate in this segment due to high entry barrier.  The company also sells its products to one of the three divisions in                                                                                       Leather Ltd. 



Third, the company operates in leather finishing segment.  It sells finished leather products to international market and domestic market.  It includes wholesale purchasers and retailers.  This part of business is conducted thro Leather Ltd. Leather also sells the company’s finished leather products to one of the three divisions in                                                                                                                    wear Industrial Co., Ltd..

第三,公司对皮革染整阶段的运作。公司把皮革制成品销售到国内外市场的经销商和零售商。这部分由Leather公司来实施,同时公司也把产品销售给wear Industrial公司。








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