Ann: ASX Letter to XPD, page-31

Ok. Finished my trip in Guangzhou. Did not see a soul wearing XPD shoes (Not their territory apparently). Went to a massisive shoes distributor area (literally huge with hundreds of retailers) and spotted 1 retailer selling XPD shoes. I checked it out and actually liked the shoes and felt good with its quality. Cost about $40-75 Aus dollars depending on the style. Was going to buy one but the lady only sell them in large quantity as wholesale. Should have taken an order request from all of you to support your own company before I came.

Overall impression about shoe market in China......huge market , but comes with huge amount of competitors. Xpd is properly one of many hundred of players if not thousand in this gigantic consumer market. If XPd is really performing as suggested, it has done a very good job as I really can't see how you would stand out in this massive market with so much competitions going on especially if you were already a known brand or sponsoring major famous person to support it. Focusing on 3/4 tie cities sound like a good move currently until they have more cash in the bank to move up to next level.

I wonder what Htran thinks about his XPD shoes now. Any good?