Swot - Peace Mark

Introduction

Peace Mark was established in 1983 which is vertically integrated engaged expanded into watch distribution in 2003 and started its retailing business China in 2005. Mainly engaged in watch should enter the design, production and distribution business involves the original equipment manufacturing (OEM), original design manufacturing (ODM), franchise brand and own brand manufacturing (OBM).

Strength

In order to further the development of U.S. downstream distribution business into the profit with the United States should import and distributor Omni Quartz joint venture company was established in 2002 in which it has a 51% stake and these chains has a perfect distribution network, they can facilitate the provision of suitable into the national logistics facilities.

Peace Mark is one of the largest OEM and ODM watch manufacturers by volume with seven production facilities in China and Hong Kong. Besides, they has the largest retail chain in China with 650 point of sales.

Weakness

When Peace Mark engaged in the downstream distribution business, it will produce more inventory and liabilities of the financial risk and when the appropriate entry to further expand its distribution network benefits, or may generate more capital expenditure and distribution costs. The inventory turnover cycle could lengthen because of the vertical integrated manufacturing and distribution, and the aggressive expansion in its luxury watch retail sales.

Opportunity

Watch the development of after-sales service business in the Mainland. own-brand business to further expand its profit margin. Watch has become a part of the trend of clothing. Benefit from CEPA, "Hong Kong" products can be sold at higher prices and profit

Threats

To carry out the downstream business in the implementation of the risk. Local and foreign watch manufacturers a variety of competing. Group's investment