The DAIDOH LIMITED Group has formulated a mid-term management plan to take effect from the fiscal year ending March 2010. This plan coincides with the 130th anniversary of the company's foundation and is intended to maximize our corporate value and lead to the company's sustainable development. The plan is comprised of four strategic themes, which are outlined below.
1. Promotion of "Business Reform" towards the creation of a strong management foundation to act as the basis of future growth strategy
The company has established a new "Business Reform Office" through the results of a one-year preliminary survey. This office will play a central role in business reform and the development and creation of an information system through company-wide activities and is intended to develop a management system that improves laborsaving and efficiency. The company's production system in China will also see a shift of the main sewing line from Shanghai to Maanshan as part of plans to reduce costs and implement streamlining of operations.
2. Aiming towards evolving into a global company based on "Business Reform"
We have already gained a reputation from a number of famous European brands for the high quality of our work performed at our Chinese plants. This background has led to a steady increase for our OEM production in a wide range of fields – from high quality handmade finished products to regular finished clothing and knitted products – from a number of European and North American companies. We will look to further expand these areas of our operations moving forward. We have also been able to maintain an operating profit in our Chinese sales to the end of fiscal year 2009 as we grow our network of 42 retail outlets throughout China, centered on our Shanghai base. We plan to further strengthen our efforts at new store development as the basis for creating a new future income stream.
3. Working to "expand value added" as a strategic effort in boldly proceeding with "evolving into a global company"
We have embarked on strategic efforts to boldly support our global development. Based on our plants in China with their world-class level of technology, we are progressing with the creation of our new knitted products business. Our contract with an Italian knitted product designer and business partnership with an Italian manufacturer of knitted yarn have led to our producing knitted products infused with an Italian sense of design as we continue our progress in producing highly globally competitive clothing.
In addition to the manufacture of the highest quality fabrics and full hand-made sewing, we are also looking to differentiate our brand's added value from our competitors' brands by strengthening and promoting use of our Chinese factories unique system. One aspect of this will see Brooks Brothers Asia start sales of pattern-order suits for the Korean and Hong Kong markets from this spring. The eight existing stores in Hong Kong have already shown encouraging results. The company is currently working to develop a system that allows the sale of pattern-made suits throughout all of our NEWYORKER shops. We believe this will enhance our men's sales within China and lead to a recovery in domestic revenue.
4. Progress in development and specialization of an internal control system for the creation of a management system required of a global company
The company is progressing with efforts aimed at enhancing our management structure with an emphasis on our corporate social responsibility. Especially, in our noted integrated system from sheep farm to store, we recognize the indispensable nature of establishing compliance and traceability in each division and are working to strengthen and implement each of these.