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Mainland Headwear Group diversifies its retail business from headwear to other licensed products by forming a JV, Futureview Investment Limited, with PPW, to engage in business of design, manufacture and retail of Sanrio products in the PRC.

Sanrio stores are differentiated into Vivitix and Gift Gate, which target to young female adults and students respectively. It is committed to developing new product lines including apparel, handbags, plush etc for Hello Kitty, My Melody and other Sanrio characters, to enhance both the brand awareness and profitability of Sanrio business.

With an aim of expanding the reach of sales network, the points-of-sale of Sanrio has been expanded from traditional retail stores to online sales platform. The huge visitation potential of the internet world and the cost effective model will further drive sales of the Sanrio products.

As at 31 December 2016, the Group operated a total of 32 self-owned stores and 92 franchise stores. It will continue to strengthen its franchise strategy, pursue innovation by opening retail stores as it implements a new business model, and expand to second– and third-tier cities in the PRC. The Group plans to more actively introduce franchise stores offering an innovative customer experience such as café, juice bar, ice cream bar, etc., to broaden its customer base and boost its business performance.