BBS took 6,000 square meter retail space from one million square meter Zhong Huan Bai Lian Mall, then open 60 individual stores within this area to work as the factory direct outlet concept.

Factory direct outlet does not work in far away areas and can only work within the inner-city in China due to most Chinese do not own their own car. The factory direct outlet branded merchandise with discount value and price within the inner city is a great and new concept which definitely will work in China.

BBS currently has 60 stores, 15 of which are athletic brands such as Nike and Reebok. 45 stores are divided into women’s, men’s and children’s fashion, among them are Playboy, top Chinese local brand and some IBMC licensed brands.

BBS manages all 60 stores and controls all sales proceeds. Each store/brands needs to decorate, build, stock with inventory, and pay sales clerk payroll. BBS collects all the sales revenue from the stores, and then pays 70% of proceeds received to the individual stores operator. BBS keeps 30% from sales as profit and manage fees. BBS under the law is the owner of these 60 stores and gets the inventory for the stores on consignment basis.

Not only the factory direct outlet within inner city is a great concept, BBS operations does not have too much risks, and shift the unsold merchandise risk to individual store operator. Any individual store or brand that does not meet pre-agreed monthly sales volume; BBS has the right to replace them with other brands or other stores. In essence, BBS is the retailer of the 60 stores although it may sound like BBS is the landlord.