DGAP-News: Powerland AG / Key word(s): Product Launch Powerland AG opened its first flagship store in Shanghai 13.10.2011 / 08:56 --------------------------------------------------------------------- POWERLAND opened its first flagship store in Shanghai Frankfurt am Main, 2011-10-13 - POWERLAND AG (Prime Standard / ISIN DE000PLD5558), leading Chinese manufacturer of exclusive luxury handbags and leather goods and listed on the Frankfurt Stock Exchange since April 2011, has successfully opened its first self-operated flagship store in Shanghai. This first flagship store is located in one of the distinguished shopping areas in Shanghai, at B.C. One on Nanjing Road (W). Key boutiques of other leading Asian and international designer brands are present in the same place and in the very vicinity in the so called Golden Triangle with prosperous department stores as the Plaza 66, Citic Square and Golden Eagle where a large number of boutiques with international brands to be find as well. The flagship store is divided into two floors offering an area of 200 sqm. The ground floor serves as display area for a wide range of the collection of POWERLAND women's handbags, while the first floor is used as show room for group purchases and individual orders from Chinese celebrities. 'By opening the flagship store in Shanghai the company has started to transfer powers of capital markets to accelerate distribution and growth in the prospering Chinese market', stated Shunyuan Guo, CEO of POWERLAND, amending that by opening the first self-operated flagship store the company adheres to the committed store-roll-out strategy, set prior to the IPO. About 70 percent of the IPO proceeds will be invested in the expansion of the company's store network by opening 70 self-operated large-size stores (flagship stores, exclusive stores and airport stores) and 120 distributor-operated smaller shop-in-shop stores throughout tier 1 and tier 2 cities in China like Beijing, Shanghai, Guangzhou, Shenyang, Chengdu, Fuzhou, Chongqing and Wuhan by the end of 2013. Only in September POWERLAND opened nine new stores. With a total of 36 openings until September 2011, and further expansion of stores in the remaining months of this year, POWERLAND is on track to achieve the targeted growth objectives for 2011. The rationale of POWERLAND's store roll-out-strategy is to gain more direct information about their customers' taste and preferences, to increase recognition of the brand and to obtain additional margins based on retail prices. Beside that POWERLAND intents to become the owner of most of the properties where the flagship stores are located to avoid rising rental costs which are expected to grow rapidly in China especially in tier 1 and 2 locations. This approach assures that acquired properties will achieve long-term successes for POWERLAND. One third of the self-operated stores opening in 2011 will be owned and two thirds will be rented. Contact: HFN Kommunikation GmbH Karl Friedrich Brenner PR for POWERLAND phone: +49 / 6196 / 77 641-10 E-Mail: kfbrenner@hfn.de About POWERLAND POWERLAND is a leading Chinese producer of fashionable luggage and bags with a main focus on high-quality luxury women's handbags made of genuine leather. POWERLAND operates two business segments - a luxury segment under the POWERLAND brand and a casual segment under the Sotto brand. POWERLAND's operating subsidiaries are located in Fujian province and Guangdong province in China. For additional information please refer to www.POWERLAND.ag End of Corporate News --------------------------------------------------------------------- 13.10.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Powerland AG Lyoner StraÃe 14 60528 Frankfurt am Main Germany Phone: +49 172 - 67 49 792 Fax: +49 6196 - 777 99 66 E-mail: info@powerland.ag Internet: www.powerland.ag ISIN: DE000PLD5558 WKN: PLD555 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 142179 13.10.2011
DGAP-News: Powerland AG opened its first flagship store in Shanghai
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