CompetitiveStrengths

One of the largest distribution network in terms of point of sales ("POS") in over 2,000 strategic locations across PRC for outdoor casual wear segment *
  • Our products under "Gertop" brand are distributed across 26 provinces, municipalities and autonomous regions within the PRC.
  • We have appointed 31 authorised regional distributors and 43 direct retailers to distribute our "Gertop" products and our products are sold via more than 2,000 POS and is estimated that we have 3.8% market share in 2010*.
  • We have the first mover advantage and have one of the largest network of POS in outdoor casual wear segment in China.

* Based on Market Research performed by Converging Knowledge in 2011

Vertically integrated business model with strong manufacturing capabilities for shoe soles and shoes
  • We have developed a vertically integrated business that combines our shoe sole production process with our shoe manufacturing process thus lowering our production costs and ensure that the quality of our products is consistently.
  • We are able to reduce the lead time for the development and production of our shoe products, thereby giving us an advantage over our competitors in the introduction of new shoe products into the market.
  • We were accredited with the internationally recognised ISO 9001:2000 certification for Addnice Sports in 2004 which was subsequently renewed in 2008.
  • In 2006, Addnice Sports was awarded the Certificate for Product Exemption from Quality Surveillance Inspection (产品质量免检证书) for our products sold under the "Addnice" brand.
Market positioning and competitive pricing

We have positioned ourselves in the consumer product industry in particular the outdoor casual wear market. As most of the players in the outdoor casual wear market are predominantly international brands and are priced at a premium, we are able to compete effectively due to our relatively lower price structure.

Strong production capabilities for shoe sole
  • Our Group has the capability to produce our shoe soles via injection moulding process and foam moulding process. Our foam moulding process produces MD midsoles which have greater elasticity - generally more flexible and comfortable compared to shoes produced via injection moulding process due to the soft and flexible properties.
  • MD midsoles produced by injection moulding process are typically fitted to shoe soles for mountain climbing and tennis whereas MD midsoles produced by foam moulding process are typically fitted to shoe soles for running, basketball and leisure shoes.
  • In the PRC, not many of our competitors are able to produce shoe soles utilizing the foam moulding process. Our product quality and success in shoe sole products can be evidenced by our list of customer which comprises amongst others of established sports PRC brands such as Xtep (特步), China Peak (匹克), 361o (三六一度) and Qiaodan (乔丹).
We have an experienced, dynamic and committed management team and board of directors
  • Our Executive Chairman and CEO, Mr Wu Qingquan, has over 22 years of experience in the shoe industry and he has played a pivotal role in the growth and development of our Group. Mr Wu Qingquan is ably supported by our senior management team, whom are experienced in sales and marketing, manufacturing, quality control and financial management.
  • Mr Wu Qing Quan is also the Vice President of Chendai town, Jinjiang city Forth Executive Committee of the Chamber of Commerce (晋江市陈埭镇商会第四届执行委员会副会长), Honorary Vice President of Quanzhou Young Entrepreneur Association of the Fifth Council of the Chamber of Commerce (泉州市青年企业家协会、青年商会第五届理事会名誉副会长) and the Council Member of Fujian Young Entrepreneur Association (福建省青年企业家协会第十一届理事会).
We are strategically located in Jinjiang City, Quanzhou City, Fujian Province, one of PRC's largest sports shoe manufacturing bases

Our strategic location gives us easy access to labour and suppliers of raw materials which, in turn, allows us to lower our production costs and obtain timely delivery of our raw materials.

Established good working relationships with our customers who include other well-established sports brands
  • We have established good working relationships with our OEM customers, many of which are owners or manufacturers or export distributors for established sports brands including PRC brands such as Xtep, China Peak, 361o and Qiaodan.
  • Our Group has also established a strong working relationship with our customers who are regional distributors of our "Gertop" products in the PRC.