I recently purchased a company called “Dapai” and will present the overview of the company, its financials and quantitative analysis, qualitative analysis, SWOT analysis and intrinsic value calculation in 4 different parts.
This first part will cover the overview of the company.
Overview of Dapai
Dapai is a Chinese company that is involved in designing, developing, manufacturing and selling of backpacks and luggage under the Dapai brand in China. It is the No.1 backpack company in China with a 35.8% market share. Dapai was previously known as China Zaino. The name change was done in May 2010 to allow consumers of Dapai products to identify the brand name with the listed company.
Its products are sold through distributors in over 3,000 concessionary retail outlets in 26 provinces, autonomous regions and municipalities throughout China. Most of these outlets are located in major department stores such as Beijing Wangfujin Department Store, Beijing Xidan Department Store, Dalian Department Store, Jinan Silver Shopping Plaza, Nanjing Zhenjiang Taihe Store and Qiangdao Parkson, and supermarkets and hypermarkets such as Carrefour, Darunfa, Haoyouduo, Jizhidao, Oushang and Renrenle.
Strategically located in Quanzhou City (Fujian Province), Dapai has a total of 64 production lines with an annual production capacity of approximately 26.1 million units of backpacks and luggage.
Dapai targets the mid-range mass market consumer segment between 13 to 50 years of age in China, and are viewed by consumers as a premium brand focusing on quality and affordability. This is evident when Dapai was named “2007 Top 500 Asia Valuable Brand Award” by Supervision and Management Centre of Asia International Brand Certification; “Top 12 Bags Brand in China in 2006” by the China Leather Industry Association, and “Top 100 Favourite Youth Brands in Quanzhou 2006”.
In addition to appointing China’s Olympic celebrity Tian Liang as Dapai’s brand ambassador, Dapai also sponsors prominent sporting events such as the national gymnastics team in the 2008 Beijing Olympics, and the 2007 – 2008 China Women’s National Basketball Tournament. It is the only backpack company in China to do TV advertisement as well. You can watch the advertisement featuring Tian Liang below.
Dapai has its own extensive R&D team to ensure that it produces good quality products whilst keeping up with the latest trends and design products suitable for our target consumers. As a testament to its commitment to the quality the products, Dapai has been awarded ISO 9001 in 2007. Every year, the R&D team comes up with between 800 to 1,000 new backpack and luggage designs of which approximately 200 are selected for commercial production.
The range of products Dapai carries can be found at http://www.chinazaino.com/products.html. However, I believe this website has not been updated for some time. You can also visit http://www.dapai-bag.com/ to look at the products Dapai carries.