JINJIANG, China, Aug. 16, 2011 /PRNewswire-Asia/ -- China Xiniya Fashion Limited (NYSE: XNY) (the "Company" or "Xiniya"), announced the opening of three flagship stores. The three new stores include a 250-square meter (2,690 square feet) store in Zun Yi, Guizhou Province; a 490-square meter (5,270 square feet) store in Harbin, Heilongjiang Province and a 600-square meter (6,450 square feet) store in Chengdu, Sichuan Province. These three cities are Tier 2 cities which have had higher GDP growth rates compared to Tier 1 cities, such as Beijing, based on 2010 figures.
Located in southwest China, Zun Yi is the second largest city in Guizhou Province, with a population of 6.1 million. In 2010, GDP grew at 14.7%, outpacing Beijing's GDP growth of 10.2% in the same year. Retail sales of consumer goods grew at 19.8% in 2010. Disposable income grew at 10.7% in 2010. Harbin is the capital city of Heilongjiang Province, which is located in northeast China. Harbin's population is approximately 10.6 million. GDP grew at 14.0% in 2010 while retail sales of consumer goods grew at 18.8% in 2010. Disposable income grew at 10.5% in 2010. Chengdu is the capital city of Sichuan Province, which is located in southwest China, neighboring Tibet. In 2010, Chengdu had a population of approximately 14.0 million, GDP growth of 15% and retail sales of consumer goods growth of 18.8%. Disposable income grew at 11.7% in 2010.
The opening of these new flagships stores by Xiniya's distributors in July complements Xiniya's existing company-owned flagship store in Jinjiang, Fujian Province where the corporate headquarters is located. The additional flagship stores will further solidify the brand equity that Xiniya has already created in these markets and enable more targeted sales and marketing efforts in these cities and surrounding regions. The brand equity benefits of flagship stores are expected to be beyond simply single-store investment and returns, as these stores enhance the attractiveness of the brand perceived by potential distributors / retailers during recruitment and business development. They also serve as a model store for operators to follow as examples. In addition, the new flagships should enhance retail sales for stores within their provinces. As at June 30, 2011, Xiniya already had 41 authorized retail stores in Guizhou Province, 69 authorized retail stores in Heilongjiang Province and 25 authorized retail stores in Sichuan Province. Guizhou, Heilongjiang and Sichuan provinces contributed approximately 9% of Xiniya's total sales in the first half of 2011.
"We are excited to have three new flagship stores located in high-profile locations that will strengthen Xiniya's brand awareness with our customers and distributors and in other business development activities," said Qiming Xu, Chairman and Chief Executive Officer. "Xiniya supported the store openings with marketing activities including prospective retailers' recruitment activities, fashion shows and grand opening ceremonies such as ribbon cutting, traditional lion dances and fireworks displays. The receptions on the opening days were a success with many customers attending the events."
The floor plan and store design of the three new flagship stores will serve as model store plans for other new stores and flagships that will be opened in the future. Flagship stores are generally three to nine times larger than typical retail stores. Distributors in other provinces are actively looking for suitable sites to open more flagship stores. Xiniya is responsible for the store renovations for these three stores, which are estimated to cost a total of RMB5 million.
Safe Harbor Statement
This news release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipates," "believes," "estimates," "expects," "future," "going forward," "intends," "outlook," "plans," "target," "will," and similar statements. Such statements are based on management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
About China Xiniya Fashion Limited
Xiniya is a leading provider of men's business casual apparel in China. The Company designs and manufactures men's business casual and business formal apparel and accessories, which are marketed under the Xiniya brand, and sells through its distribution network that includes 28 distributors. Its products are sold to consumers at more than 1,480 authorized retail outlets owned and managed by third parties located in 21 provinces, five autonomous regions and four municipalities in China. The authorized retail network, which is owned and managed by third parties, focuses on second-tier and smaller cities, where increasing affluence has led to an improvement in living standards and where most international men's apparel brands do not have a significant presence. The Company's target consumers are male working professionals in China between the ages of 25 and 45 who seek fashionable clothing to suit their working and lifestyle needs. For more information, please see the Company's website http://ir.xiniya.com.
For more information, please contact:
China Xiniya Fashion Limited
Chee Jiong Ng,
Chief Financial Officer
Mobile +86 136 5593 9932 in China
Telephone +1 212 618 1978 in the USA
Telephone + 86 10 5826 4939 in China
SOURCE China Xiniya Fashion Limited