http://www.finanznachrichten.de/...chten-2008-10/artikel-12070743.asp
20.10.2008 15:39
Good Life China (GLCC) to Convert to New Business Model by Year's End
BEIJING, Oct. 20 /PRNewswire-FirstCall/ -- Chairman Dongmei Jia of Good Life Corporation http://www.goodlifechina.com/ (GLCC.PK) announced that conversion to the new business model should be completed by end of the 4th quarter.
As the Company has continued to experience geometric growth, management has realized that the point is approaching at which the Company will have to revamp and enlarge its head office management group, and the organization will gradually suffer from typically, large company 'bloat'.
Chaiman Jia notes, "We have run lean, and focused. We were starting to see some of the potential downside of our incredible growth pattern. No matter how you slice it, more people means more meetings, more coordination between different departments, and more fat around the 'corporate middle'.
We have grown this quickly based on our software development capabilities, that have allowed to bring new suppliers and franchisees on line and get them fully productive in a very short time. As our retail channel management platform has grown in sophistication, we realize there if we remove ourselves from the middle of the wholesale distribution channel, we can connect suppliers to retailers directly, and act as a pipeline for which we charge fees for the goods flowing through the pipe.
Along the same lines of thinking, providing turnkey franchise systems is time and resource intensive. We are stripping down the model to a membership approach. Retailers will purchase membership, typically for 3 years, and ongoing monthly platform access fees. We see greater revenue potential and lower expenses with this new model. Our pilot project has returned exceptional results so far.
Suppliers will be charged to purchase our supply side software package, and pay for logistics and warehousing. We expect that the supply side will account for a majority of our revenues under this new approach, and most particularly, logistics services.
Taking this logic further, it makes good sense to split-out the logistics services division into a separate company, as this will be a high-value, high growth and high profitability source of revenue, and we want to recognize fair market value for it in the investment marketplace."
The Company will be releasing additional updates about this business model conversion in the very near future. We will also be releasing new and updated pictures of our operations on our corporate web site shortly, which is something that our shareholders have been asking for.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain forward information contained in this release contains forward-looking statements that involve risk and uncertainties, including but not limited to, those relating to development and expansion activities, domestic and global conditions, and market competition.
Get the Facts Right. The issuer works hard to continue to keep our shareholders informed, and news is updated frequently via Press Releases, Pink Sheet http://www.pinksheets.com/ filings, and updates to our websites. Other websites not sponsored, or recognized by the Company may provide misleading or disinformation to investors in order to manipulate trading patterns for a given stock. Always look for original content from trusted sources, rather than relying on 'excerpts' or discussion boards that may not give you the whole story. The Securities and Exchange Commission requires financial institutions or brokerage firms to provide their clients with documentation, describing the risks of investing in penny stocks.
CONTACT: corporate@goodlifechina.com -----------
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