XIAMEN, Fujian, China, Oct. 31, 2012 /PRNewswire/ -- China Xiniya Fashion Limited ("Xiniya" or the "Company" NYSE: XNY), a leading provider of men's business casual apparel in China, today announced that the total value of purchase orders for its 2013 Spring and Summer Collection showcased during its biannual sales fair held in September 2012 in Xiamen, China increased by 2% as compared to the total value of purchase orders placed last fall.
This year's sales fair incorporated elements of Parisian design. Focusing on the business casual market segment for upwardly mobile male professionals, Xiniya displayed three design concepts across several product sets, including jackets, suits, shirts and casual pants: "elegance", "leisure" and "simply fashionable". Delivery of the orders is expected to commence in January 2013, and is usually completed over the course of seven months.
While the Company's order value has continued to increase from year to year, the lower percentage increase in order value from 2011 to 2012 as compared to 2010 to 2011 reflects the cautious approach taken by distributors and authorized retailers as a result of the broader economic softening in
China and expected economic challenges in 2013. In an effort to ensure the long-term, sustainable development of its authorized retail outlets, Xiniya reduced the price on its 2013 Spring and Summer Collection by an average of 2.2% to improve the price competiveness of its products beginning in 2013. As a result, the Company's gross margin will decline by approximately 2.2%. This move is expected to improve product turnover for authorized retail outlets and reduce both existing and new inventories in the Company's retail channels.
"The new collection and slight increase in order value, is once again a demonstration of Xiniya's strength in creativity and design," said Mr. Qiming Xu, Chairman and Chief Executive Officer. "As leader in China's business casual apparel, Xiniya has consistently been determined to promote its concept of business travel apparel that is suitable for all occasions. Despite the challenging economic environment in China and the prudent approach taken by distributors and authorized retailers in placing orders, we expect long-term growth to continue. It is with this in mind that we implemented a new strategy to improve the competitiveness of our 2013 Spring and Summer Collection by reducing the gross margins of these products. With Mr. Tiande Liao taking over as Chief Designer last month, we are focused on continuing the momentum we have gained and look forward to another strong selling season. With the menswear industry in China continuing to show strong growth potential, we are confident that our strategy to expand our retail network and increase brand recognition over the long term will continue to show promise."