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Proposal to G2000 Apparel Limited

Proposal to G2000 Apparel Limited. October 2009. The Story Line. Total Thailand apparel retail market has been growing fast while growth for G2000 has stalled. Thailand apparel retail market is expected to grow at 11% p.a. in next 5 years

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Proposal to G2000 Apparel Limited

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  1. Proposal to G2000 Apparel Limited October 2009

  2. The Story Line

  3. Total Thailand apparel retail market has been growing fast while growth for G2000 has stalled • Thailand apparel retail market is expected to grow at 11% p.a. in next 5 years • Foreign business wear market is expected to grow at an even high rate Total Thailand apparel retail market has been growing fast while growth for G2000 has stalled Source: based on market research and Thailand franchisee internal statistics

  4. Competitors have been growing fast while growth for G2000 has stalled • Competitors’ store opening programs have directly led to substantial increase in sales and profit • G2000 should compete aggressively by reinitiating store opening program Competitors have been growing fast while growth for G2000 has stalled Source: based on market research and C Trading internal statistics

  5. New store profit outlook is attractive after G2000’s incentive program • Royalty is one of the biggest expenses • G2000 is willing to incentify C Trading by • reducing Royalty for the first 2 years • offering special discount for the initial order Source: Based on C Trading and G2000 internal data

  6. Counter vs. Shop Counter Profit Margin is HIGHER Counter Sales per Foot (SPF) is HIGHER Source: Based on C Trading internal statistics

  7. Counter vs. Shop (cont’d) Counter Setup Lead Time is SHORTER Counter Setup CAPEX is LESS Source: Based on C Trading internal statistics

  8. G2000 stores are generally profitable On average, 94% G2000 stores in Thailand are profitable Source: C Trading Financial Data

  9. Investing in the G2000 brand results in a stronger brand portfolio for C Trading • G2000 is uniquely positioned to be the foreign business wear brand in C Trading’s brand portfolio. • Growing the G2000 brand is inline with C Trading’s strategy, which is to be the brand conglomerate in Thailand.

  10. Appendix 1: Interview Notes

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