Tutwo, a big Chinese retailer and wholesaler based in Xiamen, intends to open the largest specialty outdoor store in China in Zhenzhou, the capital of the Henan province, by the end of this year. The planned selling surface is a stunning 10,000 square meters. Zhenzhou is placed in the wealthier belt along the Pacific coast, about 300 kilometers west of the railroad between Beijing and Shanghai.
Tutwo's retail network currently counts 500 shops of which 200 are franchises and 300 corporate. The target is 700 doors in total by the end of this year. Steve Hunag, general manager of the company, prefers not talk about sales figures, but indicated that his purchasing budget for 2014 is around RMB1 billion yuan renmimbi (€122.9m-$163.4m).
Since its establishment in 2006, the company has been following a rather unique business model that combines the management of own and franchised retail stores with non-exclusive wholesale operations directed at certain types of retailers. Sales through its own corporate stores account for some 60 percent of Tutwo's revenues. Its wholesale arm serves about 800 clients around the country. Its offer covers mainly brands that do not have the sales force at hand to cover the entire retail landscape in this huge country, and most importantly, small independent retailers that prefer to place small orders each time.
Among the brands relying on Tutwo's services are Toread, Fizan, Deuter, Béal, Tecnica, Vaude, Acome, Karrimor and many more. To ensure timely deliveries, the retailers are not only serviced from Tutwo's warehouse in Xiamen, but also from the group's own retail outlets, which may be closer to the customer.