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TSL:The Turnaround story Aug09
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TSL:The Turnaround story Aug09

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Presented at CU Business School, …

Presented at CU Business School,
Aug 09
summarised the vision of the company and the steps taken to take the company back on Hong Kong Stock Exchange trading

the stock raised 3 times during first day of trading

Published in Business , Education
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  • 1. The Turning Around: TSL Presentation at CU MBA class, Family Business by Erwin Huang, CEO, 11 th Aug 2009
  • 2. Strictly Private & Confidential
    • Vision
    • Crisis and Recovery
    • Changes and Reflections
    Agenda
  • 3. Corporate Mission Strictly Private & Confidential
    • Be the Leading Branded Luxury Retailer for the Chinese people
      • most innovative, efficient & profitable
    • “ Local Jeweller with a Global Touch”
  • 4. Moving Forward!! Strictly Private & Confidential 1 st Generation HK Manufacturing Entrepreneur Modern Retailer for Chinese Low Cost High Value Skill and Knowhow in Production Design, Fashionable Branding Mass, Economy of Scale Targeted, Economy of Scope Vertically Integrated Manufacturer Quick Response Efficient Retailer Traditional Apprentices System Re-engineered Corp Governance Trusted Brand name Trusted Brand name Believe in Service, go the extra step Believe in Service, go the extra step Long term loyal customer Long term loyal customer Care and Love for the Customer Care and Love for the Customer
  • 5. Corp Governance: Hard works for Changes
    • Improve Internally, Continuously
      • Promote Open and Transparent Culture
      • Adopt Corporate Governance Policies
      • Re-engineer all Processes
      • Invest into and Empower Internal Audit team
    • Audit, Audit and Audit
      • Independent Audit committee
      • Regular Auditor
      • Internal Control Auditor
    • Professional Advisors
      • Legal Consultants
      • Financial Consultants
      • Tax Consultants
  • 6. Market and Brand Positioning
    • Largest Luxury Market in the world
    • Segmentation
    • Competitor positioning
    • TSL, positioning
      • Focus on the mid-top market
      • High margin, High Value
      • Selective market and cities
      • Develop new brand: TSL:SAXX
      • Wedding Expert
      • Pt and Diamond Expert (the “White” jewellry)
  • 7. Franchise vs Self Own
    • vs competitor’s 800+ Franchise stores in China
    • TSL ~150 stores, all self owned
    • Vision, “not to be the biggest”
  • 8. Modern Management tools
    • SAP:ERP “Live Enterprise”
    • Retailing KPI’s
    • Service/Value Focus
    • CRM
  • 9. Focus on Service
    • Buy in HK, service in your home city
    • Knowledge sharing
      • Wedding fiesta
      • Parties teaching how to buy jewellery
      • Actively share with customer on how to value luxury products
    • Retail Management Assoc Service award
    • >$10,000 per staff investment in training
    • Empower frontline
  • 10. Customer Centric Biz model
    • Customer Life Cycle Model
    • “ the young shanghai girl story”
    • Grow together
    • Walk together
    • Biz model built around the customer growth
    • KPI’s
      • Acquisition, conversion, APRU/period
      • Telco business model
  • 11. Media Management
    • Crisis Management
      • In 08, TSL is on 30+ frontpage bad news
      • All Baidu, Google search results
      • No coverage is best PR during that period
    • Search yesterday..
    • The HK Story..
  • 12. Changing Industry Practice
    • Look into processes of the Tourist Industry and ask “Why Not?”
    • Work with the Gov (HK, PRC) and NGO’s
      • TB, TIC, Customs Dept, Legco,
      • Business Associations
    • Introduce “Best Business Practice” approach
      • Against “Zero-Price Tour”
      • First to implement “180 days refund policy”
      • First to implement “Buy in HK, Maintain in PRC”
      • Intro Non-Cash Transactions
      • Good Documentations
        • Contracts, IT, Audit trails
  • 13. ACHIEVEMENTS FOR THE YEAR
    • Summary:
  • 14. Summary for the Year
    • Achievements for year
      • Smooth Transition for the New Management
        • Good Reception from the Media, Partners and the Public
      • Improvements over efficiency even against Economic Climate changes
      • Reduced Gearing even during tough times
      • Improved internal controls across the company, verified by independent parties
      • Continuous Dividend payment to improve Shareholder returns
      • Resumption of Trading on HKSE (Jun 2009)
  • 15. Store network – 168 stores ( as at 31th May 2009 ) Xinjiang 陔蔭 2 Gansu 裘顏 1 Sichuan 侐捶 8 Yunnan ? 鰍 2 Guizhou 惸笣 2 Guangdong  10 Hunan 綬鰍 1 Jiangxi 蔬昹 1 Fujian 腦膘 4 Zhejiang 涳蔬 6 Shanghai 奻漆 8 Jiangsu 蔬妶 5 Anhui 假閣 1 Hubei 綬控 1 Shandong 刓 2 Tianjian 毞踩 4 Henan 碩鰍 2 Shaanxi ? 昹 3 Hebei 碩控 3 Beijing 控儔 13 Liaoning 腶 ? 7 Jilin 憚輿 1 Heilongjiang 2 Xinjiang 新彊 2 Sichuan 四川 8 Yunnan 雲南 3 Guizhou 貴州 6 Guangdong 廣東 16 Hunan 湖南 Jiangxi 江西 2 Fujian 福建 Zhejiang 淅江 7 Shanghai 上海 15 Jiangsu 江蘇 19 Anhui 安徽 3 Hubei 湖北 2 Shandong 山東 7 Tianjian 天津 4 Henan 河南 6 Shaanxi 陝西 5 Hebei 河北 4 Beijing 北京 29 Liaoning 遼寧 6 Jilin 吉林 2 Heilongjiang 黑龍江 3 6 Guangxi 廣西 6 The wholly-own, Franchise and JV shops are grouped into 6 divisions and 3 regions. Hainan 海南 2 4 甘肅 Gansu 1 Regions Own shops JV shops Fran. shops Cities Northern PRC Division 4 Division 9 Southern PRC Division 7 Division 8 Central PRC Division 5 Division 6 Total 12 17 30 13 20 38 130 7 - - 3 - - 10 - 25 - - - 3 28 哈爾濱 , 長春 , 沈阳 , 抚顺 , 大連 , 青島 濟南 , 烟台 , 淄博 北京 , 天津 , 西安 , 石家莊 , 塘沽 廣州 , 深圳 , 海南 , 佛山 , 广西 , 廈門 , 福州 長沙 , 南昌 , 武漢 , 合肥 , 焦作 , 洛阳 , 郑州 兰州 , 成都 , 重慶 , 昆明 , 貴陽 , 新疆 上海 , 寧波 , 杭州 , 无锡 , 南京 , 昆山 , 苏州 , 常州 , 南通 , 温州 , 常熟
  • 16. Turnover for the year : $1, 9 59M( +2 .2%) Profit attributable to equity holders of the Company $ 104 . 8M (+ 5.6 %)
    • Improvement in result mainly due to :
    • Growth in turnover and contribution from Mainland China
    • Compensation income from early termination of a shop lease
    FY 08-09 Results
  • 17. Cost / turnover under control and EBIT / turnover maintained stable FY 08-09 Results
  • 18. Borrowings was HK$ 1 3 1 million & gearing decreased to 22.7 % Equity attributable to shareholders increased to $ 512 million Cash, Gearings and Equity Feb 07 Feb 08 Feb 09 HK$ m HK$ m HK$ m Borrowings 149.6 171.1 131.8 Cash, Bank& undrawn banking facilitiy 99.2 79.0 137.0 Total Assets 920.9 1,259.0 1,212.4 Equity attributable to shareholders 275.6 401.6 512.1 Total Equity 307.3 448.2 580.4 Gearing (Borrowings / Total Equity) 48.7% 38.2% 22.7%
  • 19. Dividends (Final 3 cents/share + Interim 2 cents/share = 5 cents /share) Earnings per share increased to HK$ 0. 50 Net assets per share increased to HK$ 2.45 Dividends and Returns per share
  • 20. 無鍚商廈 Wuxi 17 New Stores in PRC
  • 21. Opened and expanded shops (HK)
  • 22. Key Shop in Mongkok Mongkok Hollywood Plaza (MH) - Perspective
  • 23. Exhibition later this week, 1 st at the HKCEC New Wing Hong Kong Premier Pavilion Jewellery Fair – 18th-21st June 2009
  • 24.
    • Continuous Product Innovations:
    • Estrella, 100 Facets
  • 25. Amazon Segundo Collection
  • 26. Moving forward!
    • Continuous improvements:
      • Efficiency and Effectiveness of the team
      • Brand improvements
        • Nurturing of New Brand: TSL:SAXX
        • Continue Strong Position in Up-end market in PRC
        • Premium Position for TSL: Estrella product line
        • With Improved New Product and Shop Experiences
        • Strong Recognition in Wedding Market segment
    • Cautious approach:
      • For New Shop investments
      • Raw Material Pricing not stable
      • Unknown Economic Recovery Cycle
      • H1N1 damage to Tourist Industries
  • 27. Summary: reborn into a new industry Strictly Private & Confidential 1 st Generation HK Manufacturing Entrepreneur Modern Retailer for Chinese Low Cost High Value Skill and Knowhow in Production Design, Fashionable Branding Mass, Economy of Scale Targeted, Economy of Scope Vertically Integrated Manufacturer Quick Response Efficient Retailer Traditional Apprentices System Re-engineered Corp Governance Trusted Brand name Trusted Brand name Believe in Service, go the extra step Believe in Service, go the extra step Long term loyal customer Long term loyal customer Care and Love for the Customer Care and Love for the Customer
  • 28. Summary: the Turnaround
    • A clearly defined mission
    • Hard work
      • Modern mgt tools
      • Process re-engineering
      • Innovation in retailing
      • Changing industry practice thru leadership
    • Media Management
      • Press, client, public, government
  • 29. Personal Sharing
    • How’d I come to join TSL?
    • A little bit on my background
    • What’s the chemistry that drive success and failure?
    • What’s the difficulty working with a Family business, boss?
  • 30. Discussions Strictly Private & Confidential
  • 31. Contact
    • Email: Erwin@fdlife.com
    • Twitter: erwinhuang
    • Facebook: erwinhuang1
    • Blog: http://erwinmobile.blogspot.com/
  • 32.  
  • 33. Preparation Slide after these (Not used) Strictly Private & Confidential Page