Giordano has reported its 2007 first three quarters gross profit up 8.7% from the same period of prior year. For the period, the growth of total gross profit slowed down due to poor performance of manufacturing sectors compared with the retail and distributing sectors.
As the profit goes down for the manufacturing sectors, many garment manufacturers are gradually changing their usual business model in distributing channels. Chairman of Septwolves Zhou Shaoxiong said, “Septwolves does not want to be a largest garment manufacturer. We want to be the largest garment retailer in China.”To the outside, that seemed to be a signal of the company’s transferring from a brand manufacturer to a brand retailer. Under the currently conducted strategy of the company, ten out of the twenty men’s lifestyle stores will be operated directly by the company. It is reported that, besides Septwolves, many other brands such as LILANG, JOE|ONE, SEVER BRAND, Fordoo and K-boxing were also regulating their channel structure through increasing the number and proportion of directly operated and joint operated stores.
As the profit goes down for the manufacturing sectors, many garment manufacturers are gradually changing their usual business model in distributing channels. Chairman of Septwolves Zhou Shaoxiong said, “Septwolves does not want to be a largest garment manufacturer. We want to be the largest garment retailer in China.”To the outside, that seemed to be a signal of the company’s transferring from a brand manufacturer to a brand retailer. Under the currently conducted strategy of the company, ten out of the twenty men’s lifestyle stores will be operated directly by the company. It is reported that, besides Septwolves, many other brands such as LILANG, JOE|ONE, SEVER BRAND, Fordoo and K-boxing were also regulating their channel structure through increasing the number and proportion of directly operated and joint operated stores.
