CHDO Strategy
Our growth strategy is to develop and maintain positions of innovative and technical leadership by continually introducing new ideas and concepts to our consumer product categories while maintaining low competitive prices. We plan to leverage our product successes and continually expanding channels as our brands continue to gain traction at retail levels by merchandisers, buyers and consumers. This brand recognition and expanded product placement is expected to continue to increase annual sales growth. We also plan to selectively acquire business with similar technical capabilities that could benefit from our leadership position and strategic direction.
We have extensive experience with introducing new products into retail market channels and believe that provides us a competitive edge. Typically, we seek to find niche product opportunities that may be overlooked or underexploited by competitors, and believe that we can win a profitable niche of the market share. We believe these opportunities exist with innovative, aesthetically-pleasing products that include the following characteristics:
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Designed for an everyday use or task;
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Affordable, that is we can produce with a reasonable profit within the range of manufacturer’s suggested retail price for such a product
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Represent value when compared with items produced or marketed by major consumer product companies on a national scale; and
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Generates reasonable profit and profit margin opportunity with acceptable market penetration costs.
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We believe that it can be more economical and efficient to develop and manufacture certain products in China and have them shipped to the United States rather than to have such products produced in North America. While this resource is available to and used by large numbers of U.S. companies, including our competitors, we believe this Chinese manufacturing resource gives us the level of production cost and quality that allows us to be competitive with larger competitors in the United States. In Hong Kong, we also have personnel experienced in Engineering and Design, Product Development, International Logistics and Quality Control, who work with our OEM Chinese factories to develop and prototype new product concepts and to ensure products meet Consumer Product Regulations and rigorous Quality Control standards. All products are tested by certified testing laboratories, before and during production by company personnel and certified testing laboratories. This team also provides extensive, product development, quality control and logistics support to our factory partners to ensure on time shipments. The Company plans to expand its staff in Hong Kong and the Company’s relative presence in 2012 as product line extensions and increased number of factories utilized become factors.
