Grand Ocean Retail Group Ltd (大洋百貨集團), a Chinese department store chain operator listed on the local stock market, posted 5.56 percent annual revenue growth last quarter, benefiting from China’s disposable income.
In the first three months of this year, revenue rose to NT$2.14 billion (US$68.67 million), compared with NT$2.03 billion a year ago, the company said in a statement released on April 10.
Grand Ocean operates 16 department stores in second and third-tier Chinese cities.
DISPOSABLE INCOME
“Even though China’s economic growth is decelerating, rising disposable income in China makes the retail sector a major driving force of the economy,” Grand Ocean said in the statement.
China aims to bolster its retail sector by 12 percent annually this year, outpacing its GDP growth target of 7 percent, the statement said, citing a Chinese government forecast.
In addition, improving salaries for China’s middle class, as well as the nation’s strong stock market performance in the first quarter, could help drive department store operators’ business this year, the statement said.
CHILDREN’S WEAR
That could also help drive consolidated sales of TOPBI International Holdings Ltd (淘帝國際控股), one of the three major children’s clothing brands in China, this year.
TOPBI saw consolidated sales in the first three months of the year total NT$1.03 billion, an increase of 18.19 percent from a year earlier, marking the best first quarter in the company’s history, a company statement showed.
China’s move to ease its one-child policy in 2013 has helped domestic children’s clothing brands maintain strong sales growth, with the expected increase of newborns and parents’ demand for children’s clothes to be major drivers for the sector this year, TOPBI said.
The company might expand to 1,400 stores by the end of this year, an increase of 10 percent from last year, and launch more themed series sales to broaden product diversification and boost its market share.
CASUAL FASHION
However, fashionwear firm Jinli Group Holdings Ltd (金麗集團控股), which runs two medium-priced casual clothing and shoe brands — G-Apple and e.t — has held a more conservative attitude toward severe price competition.
Consolidated sales in the first quarter of the year showed a 4.64 percent decline from the same period last year to NT$1.28 billion, company data showed.
However, the company said it plans to continue broadcasting television commercials, while improving design and the development of new series for fall and winter this year in a bid to maintain its average unit price.
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