Loss in financial situation
Refer to the interim results announcement of Sincere until August, it can be seen that the loss for the period has increased for about 50%. And the equity holders of the company is also increased about a double compared to last year same period. This causes a loss in financial situation to Sincere in the market.
Lack of competitive advantage
Because of the seasonal sales, Sincere may just held discount sale once or twice a year. As one of the main competitor of Sincere is Wing On has promoted through its ‘weekend specials’ programme, it may attract more customers than Sincere relatively especially in weekends. This may cause less competitive advantage to Sincere compared to its competitors.
Weak brand image
On the other hand, some other department stores such as SOGO and YATA has introduced special departments in selling some famous brand items while about 80% of the product sell by Sincere is chosen and purchased by its purchasing department. This may cause a weak brand image to other department stores. Customers may prefer do shopping in others as there are more brand selection and specialty items rather than in Sincere.
Announcement of the 2014 interim results (2014). [online]. Last accessed 6 November 2014 at: http://18.104.22.168/listco/hk/sincere/interim/2015/int.pdf
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