DGAP-News: Ultrasonic AG: ULTRASONIC is extending its distribution strategy for the Chinese market
(firmenpresse) - DGAP-News: Ultrasonic AG / Key word(s): Strategic Company
Decision/Development of Sales
Ultrasonic AG: ULTRASONIC is extending its distribution strategy for
the Chinese market
07.12.2012 / 10:05
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ULTRASONIC is extending its distribution strategy for the Chinese market
- Plans for new distribution partnerships to market sandals and slippers
via retail chains in China
- Dependence on exports in the Sandals and slippers segment will be
reduced considerably
- New online distribution portal for urban footwear
- New urban footwear brand to target younger customers through direct
internet sales
Cologne, 7 December 2012 - Ultrasonic AG (Prime Standard, ISIN
DE000A1KREX3, US5), the German holding company of an established Chinese
producer and supplier of high-quality branded footwear, is extending the
distribution strategy for its home base in China to increase its market
share even faster.
ULTRASONIC will be raising production capacity considerably from the start
of 2013 following acquisition of a new factory complex and expansion work
at its present site. To utilise this new capacity, the company will be
using a wider range of marketing channels. The plan is to enter into
partnerships with distributors who supply sandals and slippers to major
retail chains such as supermarkets. ULTRASONIC is currently negotiating
with several suitable distributors and expects to conclude agreements in
the next few months. The domestic market only accounts for around 35% of
sales in the Sandals and slippers segment at present. Through new
distribution agreements the company aims to raise this to up to 55% in the
next two to three years. To prevent dilution of the premium 'ULTRASONIC'
brand, which is used for high-quality leisure shoes and accessories, a
separate brand concept is planned for the sale of sandals and slippers
through retail chains.
In addition, the Management Board of Ultrasonic AG has decided to set up an
online portal to drive forward direct sales of urban footwear products via
the internet. To step up marketing to a younger target group which makes
extensive use of the internet but for which the ULTRASONIC premium products
are often too expensive, the company is also planning to introduce a second
urban footwear product line. This new brand will be priced below the
ULTRASONIC brand but should nevertheless meet the company's high quality
standards. The management expects the cost efficiency of direct marketing
to have a positive effect on the achievable margin. It is currently
considering acquiring an existing brand because brand registration
processes can take several years in China. If these strategic plans are
realised successfully, the management expects to enter direct marketing via
the internet around the middle of next year. The ULTRASONIC premium brand
of urban footwear and accessories will still be distributed via the
established distributor concept.
Qingyong Wu, Chairman of the Management Board and CEO of ULTRASONIC,
believes that the company is therefore well-positioned for faster growth on
the Chinese market from 2013: 'Thanks to the acquisition of the new
production complex, additional capacity will be available from the first
quarter of 2013. Expansion of the present production site, which started
about a year ago, should be completed in the second quarter, allowing a
further rise in output. These investments enable us to meet strong demand
from our customers for our shoe sole products and continue to grow our
sandals and slippers business. In addition, in the first quarter we will be
starting up in-house production for the Urban footwear segment - a
milestone in the development of ULTRASONIC. By raising production capacity,
we are creating scope to participate even better than in the past in the
rapid growth of consumer spending in China. Expanding our distribution
concept is the logical next step to utilise all the potential this gives
us.'
About Ultrasonic
The Cologne-based company Ultrasonic AG is the German holding company of
the Chinese ULTRASONIC Group, an established manufacturer and supplier of
high-quality branded urban footwear. With around 1,400 employees the Group
operates in three market segments, each of which contributes about a third
to the Group's revenue. ULTRASONIC produces sandals and slippers for the
upper price segment and is a long-term supplier of shoe soles for leading
manufacturers in the booming Chinese sport shoe industry, for example Anta,
Xtep and Unisuper. Moreover, the company has successfully established its
own 'Urban footwear' collection which is marketed under the ULTRASONIC
brand and is specifically designed to meet the needs and taste of China's
growing urban middle class. ULTRASONIC's branded urban footwear collection
is currently marketed in around 100 ULTRASONIC mono-label shops, which
achieve selling prices in a range from RMB 400 to RMB 1,200 per pair,
equivalent to approx. EUR 50 to EUR 140. Within the last three years
ULTRASONIC's business had a compound annual growth rate of more than 34.4
percent. In FY 2011, the company generated total revenues of EUR 119.4
million and achieved a net profit of EUR 24.9 million.
For further information about the company visit: www.ultrasonic-ag.de
For Enquiries:
Ultrasonic AG
Chi Kwong Clifford Chan
Vorstand und CFO
E-Mail: ir(at)ultrasonic-ag.de
Tel.: +86 1525 947 9902 (China), +852 966 227 40 (Hong Kong)
Disclaimer:
This document is no offer for the purchase of securities in the United
States of America. Securities may only be sold or offered for sale with the
previous registration under the U.S. Securities Act of 1933 in the actual
valid version or without previous registration only pursuant to an
exemption. The shares of Ultrasonic AG (the 'Shares') have not been
registered under the U.S. Securities Act of 1933 in the actual valid
version and may not be sold or offered in the United States.
This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as 'relevant persons'). The Shares,
which are referred to, are only available to relevant persons and any
invitation, offer or agreement to subscribe, purchase or otherwise acquire
such securities will be engaged in only with, relevant persons. Any person
who is not a relevant person should not act or rely on this document or any
of its contents.
End of Corporate News
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07.12.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: Ultrasonic AG
c/o BPG Beratungsund Prüfungsgesellschaft mbH,
Graf-Adolf-Platz 12
40213 Düsseldorf
Germany
Phone: +86 1525 947 9902 (China); +852 966 227 40 (Hong Kong)
Fax: +49 (0)211 172 9829
E-mail: ir(at)ultrasonic-ag.de
Internet: www.ultrasonic-ag.de
ISIN: DE000A1KREX3
WKN: A1KREX
Indices: CDAX, Classic All Share, DAXsector All Consumer, DAXsector
Consumer, DAXsubsector All Clothing&Footwear,
DAXsubsector Clothing&Footwear, Prime All Share
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Stuttgart
End of News DGAP News-Service
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