Direct Sales Outlet of Prosperous Agriculture in Shaanxi Ranks Top in Sales

Prosperous Agriculture will give priority to set up 100 agricultural resources direct sales outlets in Shaanxi and the surrounding areas this year. It is expected that these 100 direct sales outlets shall achieve an annual sales of RMB200 million (about US$31 million) and the tax-exempt gross profit of RMB40 million (about US$6.2 million).

Mr. Wang Fei, General Manager of Prosperous Agriculture, said: "There are issues with traditional sales channels, such as small scale of operation, low level of organization, low economic efficiency, excessive details for product circulation and high distribution costs, which make it difficult for these channels to operate in an effective scale. Prosperous Agriculture directly opens direct sales outlets to sell its own brand of 'Xiduofeng' series and to act as agent of 'Luxi', 'Ezhong', and 'Jinyuanfeng' compound fertilizers; this shortens the link between the distribution channels and reduces costs. The pricing and after-sale service are more competitive than the traditional stores."

Mr. Wang Fei further said: "The establishment of the direct sales outlet is the strategy materialization of Prosperous Agriculture's compound mode which combines production and sales. Prosperous Agriculture will gradually integrate and transform the 2,000 sales terminals into the direct sales outlet model and will extend this model from Shaanxi to Henan, Shandong, Hebei, Shanxi, Gansu, Ningxia and Xinjiang; with the gradual expansion of direct sales outlets, Prosperous Agriculture will form the largest direct distribution chain marketing system and the future annual sales is expected to reach RMB4 billion (about US$620 million). "

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