Chinese Men's Wear Launching in Australian Market

by Australia China Connections - The Bilateral Business Bulletin

Founded in 1996, Sunbridge Group Ltd (ASX: SBB) presents the opportunity to invest in a company focused on the sale of branded menswear in the fast growing China retail consumer market.

Sunbridge Group owns and operates the "PANDIST 邦迪.斯顿" and "AGUESEADAN 亚阁.仕丹" brands of menswear, which are designed for business and casual purposes and primarily targeted towards middle-class white-collar gentlemen. The Company's product line is broadly divided into business formal, business-casual, fashion casual and sports and include:

- Suits and jackets;
- Shirts and trousers;
- Sweaters and accessories.

The Group's products are sold across an extensive distribution network of over 400 retail outlets, covering 28 provinces in the People's Republic of China and Hong Kong, including a flagship store in Jinjiang City, Fujian Province which was established in 2011.

A carefully-tailored approach to marketing and strategy with a view to maximising its exposure to its key target audience has been extensively undertaken by Sunbridge Group.

The Group designs all of its clothing through its in-house design team but it outsources all of its production to OEM contractors which are located in the Guangdong and Wenzhou cities, which are well-known apparel production hubs in the PRC.

Sunbridge Group, through the Chinese Subsidiaries, has received various awards and recognitions over the years as a result of both its excellence achieved in its operations and also in recognition of its brand value including the 2013 Top 10 Influential China Fashion Enterprise.

KEY INVESTMENT HIGHLIGHTS on ASX Listing

The Company expects to pay a dividend of 25% NPAT for the calendar year ended 31 December 2013!

The Sunbridge Group's products are currently sold in over 400 retail outlets across the Peoples Republic of China, targeting China's rapidly growing middle and upper-middle class male consumers aged 25-40 years - the age group with the highest disposable income in China.

Strong historical profit margins with the year ended 31 December 2012 profit after income tax totalling approximately $13.3 million on the back of $63.7 million of revenue.

Sunbridge Group's two-pronged, scalable and low-cost business model for its menswear retail business is focused towards:
Expanding the Group's sale and distribution network primarily through collaboration with its business distributors to leverage on their distribution networks and retail traffic flow to rapidly expand reach to retail consumers with minimal capital investment; and
Outsourcing production to focus on key product design, sales and distribution and brand management functions.

The Group's strategy is to capitalize on the expected increase in disposable incomes of the fast growing Chinese urban population by increasing its sales footprint and reach out to its target market to maximize the sales of its branded menswear.

Read article in Englishhere.

Read article in Chinesehere.