|According to the report of “Market Analysis on China’s Indoor Sportswear Industry” of Frost & Sullivan, in 2013, the market share of our swimwear product line in China amounted to 10.5%, ranked the first in its market segments with our market share continuously increasing. Our swimwear products include swimsuits for competition, sports swimsuits and casual swimwear for women and men, children swimsuits as well as beachwear. The Group has two brands, being “Hosa” and “Water Cube” brands. The “Hosa” brand is targeted at the mid-to-high end markets and its major customers are urban white-collar professionals. As for the “Water Cube” brand, it is targeted at the middle-end market with teenagers as its major customers.
We conduct thorough market research and feature the latest global fashion trends into our swimwear designs. We also select premium fabrics and incorporate the latest technologies in fabrics and patterns into our designs. For example, we utilize imported nylon and lycra combination fabrics for some of our swimwear products, which are comfortably tight-fitting and highly resistant to wear and tear, UV radiation, saltwater and sweat.
In 2008, our Hosa Brand was recognized as an exemplary brand in China’s swimwear industry and we became the exclusive provider of swimwear products at the National Aquatics Centre, more commonly known as the Water Cube, or the site of aquatic events during the 2008 Olympics.
In December 2012, Hosa was granted the license to use the Water Cube Brand by The Beijing National Aquatics Centre. In 2013, the Group formally introduced the Water Cube Brand swimsuits. The newly introduced Water Cube Brand aquatic sportswear serves as a supplement to our Hosa Brand swimsuits which target at medium and high-end market. With the new launch, the Company’s swimwear product has covered the mid-range users and this initiative has also enhanced the competitiveness of the Group’s swimwear product in the channel and professional market and enlarged the market scale of the Group’s swimwear product. The first fruitful result was shown in 2013.