A wood comb is displayed at a Carpenter Tan store. The Hong Kong-listed company plans to further expand its network at home and abroad and promote its brand to increase sales. [China Daily]
Carpenter Tan vows to add 200 stores, 30 high-end outlets in '10
Carpenter Tan Handicrafts Co, China's largest comb maker, is planning to invest big to enhance its brand and expand its national network this year to become one of the world's leading comb producers, Tan Chuanhua, founder and chairman of the Hong Kong-listed company, said yesterday.
The Chongqing-based comb maker is forecasting its sales will surge by more than 30 percent in 2010, outperforming the previous years, Tan predicted.
Starting in 1997 as a small business with registered capital of 500,000 yuan ($73,231), Carpenter Tan has grown into the largest comb maker in China, with sales hitting 109 million yuan in 2008.
The company raised HK$140 million ($18.05 million) through a Hong Kong initial public offering late last month.
With the injection of funds Tan believes the company is geared up to improve itself and turn more profitable.
"We have quality combs, but the Tan brand has not been widely recognized nationwide. The company will be launching branding programs to promote the image," he said.
Carpenter Tan targets white-collar workers aged between 18 and 45, and wood combs are priced at 70 to 150 yuan each. According to the company's comprehensive survey launched last year, few of those questioned considered the combs were worth the price. Tan plans to work on that area, saying: "We have confidence we can change that."
The company's branding programs include redesigning existing stores, overhauling interior product displays, launching more high-end products and stores.
By the end of 2009, Carpenter Tan had 860 stores in China and abroad. "This year, we would like to update and modernize 60 existing stores, and in the near future all stores will be spruced up," said Tan.
By the end of 2010, the company aims to add 200 stores to its network, with 30 high-end stores named "Tan's" and another 25 stores overseas.
"Tan's will be larger and set up in the best locations in key cities," Tan explained.
The average Carpenter Tan store has a floor area of 15 to 20 sq m, while the new Tan's-branded stores will be 40 to 50 sq m.
Although Carpenter Tan plans to expand more into overseas markets, the China market is still the focus of the company in the short term. "We will be cautious in selecting overseas markets, with Asian nations given preference," the founder said.
Focused on making comb, Carpenter Tan made its listed debut on Dec 29, 2009, and its shares rocketed up 52 percent on the first trading day. In the first few days of January 2010, shares rose by 6 percent and ended at HK$4.11 yesterday.
"Our strong focus on making combs helps and we will continue to attract investors," said Tan.
But Carpenter Tan did have its ups and downs after the global economic downturn hit, and sales dropped by 12 percent to 109 million yuan in 2008. But Tan said 2009 was "ok for business", during the first half, with sales growing 23 percent.
"This year, we could post high growth no less than pre-2007 (30 percent)," Tan added.
