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OmniaLuo, Inc.
Embraces China’s Growing Demand for Luxury Goods With
Award-Winning Designs and Astute Business Strategy
AllPennyStocks.com News
May 8, 2008 (AllPennyStocks.com Media, Inc.) – China is
dressing for success—luxurious success. With the country’s GDP
growing more than 11% in 2007 and poised to grow another 8% in
2008, coupled with its 1.3 billion consumers growing appetite
for luxury goods and a rising number of millionaires, China is
poised to become the next decade’s second biggest consumer of
luxury goods. The Chinese fashion industry is on the cusp of
that luxury boom as it undergoes a fashionable nip-and-tuck
focused on new generation of female professionals. Chinese
consumers want to make purchases that reflect their new social
status, according to investor and industry portal China-AsiaStocks.com,
and one demographic embracing the new found social status is
professional women in China.
There’s a reason the old adage “dress for success” perseveres;
nothing reflects your social status more than what you wear.
And the Chinese are keeping that adage alive. China’s apparel
industry has been growing at 7% annually and is now a $40
billion industry, according to retail consulting firm O&L
Consultancy Services. O&L Consultancy projects that the growth
rate of retail sales will hover around 10% during the next 5
years. Of those retail sales, department stores account for
40% of the clothing sector. Profit margins for the retail
chains are high -- reaching as much as 50.5% for brands like
Giordano -- thanks to lower manufacturing costs in China,
according to O&L.
One company that understands the Chinese fashion industry and the minds of the
Chinese fashion consumers is OmniaLuo, Inc.
(OTC BB: OLOU). Based in China's fashion capital of Shenzhen, OmniaLuo
designs, develops, markets and distributes fine women's apparel under the brand
name OMNIALUO. The Company boasts that its apparel embodies elegance, femininity
and sophistication for China's rapidly growing class of urban and affluent
female professionals. But most attractive to investors is the Company’s rapid
and strategic expansion plan, with intentions to increase its retail presence
throughout China from its current 202 stores to more than 250 stores by year-end
2008. The Company projects that under the leadership of Cindy Luo, the company's
founder and award-winning chief designer, it is positioned to become the Chinese
brand equivalent of Donna Karan or Liz Claiborne, hoping to capture a large
section of China’s $25 billion women’s apparel market.
With the Company’s knowledge of the country and fashion industry, OmniaLuo has a
strategic advantage. "We see many luxury brands including Dior and Louis Vuitton
entering the Chinese marketplace to expand market share, selling to Chinese
consumers,” Chief Executive Cindy Luo said. “Also, several foreign fashion
brands have moved their production to China -- so China is becoming an integral
part of the high-end fashion industry in all aspects. Our company understands
the consumer, knows the competition and feels we can compete with well-known
foreign luxury brands."
Founded by award-winning fashion designer Cindy Luo, OmniaLuo, which develops
1,600 business-casual designs each year, is forward-focused on its designs,
operations and marketing. The Company strives to create apparel that embodies
elegance, femininity and sophistication for urban and affluent female
professionals, targeting a fast-growing population of women between the ages of
35 and 45. OmniaLuo operates more than 200 retail stores throughout China with
plans to manage a total of 300 stores – that will be heavily weighted toward
higher-margin independent distributor stores (50-55% average profit margin) –
within 18 months. In addition, the Company plans to launch a multi-million
dollar, brand-awareness marketing campaign within a year, showcasing its designs
in such high-end magazines as Vogue and Harper’s Bazaar.
OmniaLuo boasts strong financials compared to other well known designers such as
Espirit, Ann Taylor and True Religion. OmniaLuo’s 2007 price-to-earnings ratio
was a healthy 12.5, compared to True Religion’s 16.94 and Ann Taylor’s 16.68.
Espirit’s 2008 estimated price-to-earnings ratio is 17.27 while OmniaLuo’s is
6.1. The company had $7.6 million in working capital at the end of 2007, up from
$451,050 the previous year. The company also reported revenue of 7.9 million and
net income of $2.2 million in 2007, with projections of $14.5 million in revenue
in 2008 and net income of $4.8 million.
The Company’s stock is currently trading in a range between $1.30 and $1.50,
while the average daily volume is approximately 5,100, showing that the stock is
under the radar of many investors. As the company continues its amazing growth
rate, and expands its business throughout the provinces of China, there is
little doubt that the stock will move quickly as investor interest increases
along with the Company’s growth.
But OmniaLuo’s greatest asset may be its sharp management. Chairwoman and Chief
Executive Officer Zheng “Cindy” Luo is a renowned designer who created the
original OMNIALUO brand in 1999. Luo, who has won many international fashion
awards, holds a degree in finance from Shenzhen University. Chief Operating
Officer Junneng Yang brings more than 15 years of fashion marketing and brand
management to the company. Yang, who has served as a professional consultant for
over 20 fashion brands, has built the OmniaLuo distribution network from two to
150 stores.
OmniaLuo is poised for tremendous growth as it harnesses China’s booming luxury
goods market. With smart strategy, sharp designs, strong fundamentals and
award-winning management, OmniaLuo could be a perfectly tailored long-term
investment.
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Although the majority of
AllPennyStocks.com reports are independent, it has received
compensation for carrying the report on OmniaLuo, Inc., the
compensation is twenty thousand nine hundred dollars by a
third-party, After Market Support, LLC. for its efforts in
presenting the OLOU profile on its web site and distributing
it to its database of subscribers as well as other services. This creates an inherent
conflict of interest and readers are encouraged to view the
main disclaimer at
http://www.allpennystocks.com/aps_us/company_spotlights/archives/olou.asp
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