Annual Report 2011 - Goodbaby International Holdings Limited

Dear Shareholders,
I wish to present, with gratitude, the following
report on the developments of Goodbaby.
In 2011 and with care and support from
shareholders, the Group achieved both growth in
sales and corporate developments by leveraging
on its excellent corporate culture and strong core
competitiveness in a challenging market
environment. In particular, rapid developments in
the PRC market further consolidated the Group’s
position as market leader. Enhancement in the
Group’s integrated strengths achieved for
ourselves both room and opportunities for
accelerated developments.
With the deployment and formulation of the
Group’s in-depth distribution strategy, the rate of
market permeation of our brand and products
rose rapidly. Based on profound market insight,
the Group formulated a “Channel Development of
Secondary Cities to Towns and Grid
Management” marketing strategy in the PRC
market with detailed implementation plans with
which we rolled out the most fundamental and
extensive marketing battle. This enabled the
Group to gain a fundamental strategic edge in
capturing opportunities for long-term business
growth in the juvenile durables market in China.
Note 1: Currently, there are 3 main streams of our revenue from overseas markets, which are: OBM (“Original Brand
Manufacturer”), namely revenue from sales of own products of the Group; OPM (“Original Product
Manufacturer”), namely revenue from sales of self-developed products under our clients’ brands; and OEM
(“Original Equipment Manufacturer”), namely revenue from sales of products developed by clients under
clients’ brands. Among which, the OBM and OPM models are the core models of the Group. We have
developed our European and American markets with the OPM model while the OBM model as the core
supplemented by the OPM model for other overseas markets.
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As regards our international markets, the Group
further strengthened its operation initiatives
through optimization of the operation
management team. The Group also introduced a
“strategies-oriented, markets-oriented and
customers-oriented” business management model
that further enhanced core competitiveness and
diligently implemented the “OPM + OBM”
business model Note 1 and a “Rapid Growth”
strategic objective. Significant progress made in
our strategies of market diversification, product
diversification and customer diversification while
the Group’s relationships with our core customers
were further enhanced.
The Group’s global innovation research system
accelerated in both growth and development. The
Group’s 5 research centers located in the United
States, Europe, Japan, Hong Kong and China
respectively maintained close connections with
our markets and customers and such integration
of international and domestic resources facilitated
the Group’s further developments in its research
capabilities in products originality, sustainability
and scale. Such system also successfully