Summary of 361 Degrees Conference Call Company Overview - **Company**: 361 Degrees - **Industry**: Sportswear and Outdoor Apparel Key Points and Arguments E-commerce Strategy - The company is shifting towards a more stable e-commerce strategy, moving away from heavy discounting to regular promotional activities to achieve healthy growth [2][3] - During the Double Eleven shopping festival, discounts remained stable, and overall GMV (Gross Merchandise Volume) growth met expectations, outperforming the industry average [2][3] Sales and Market Trends - The warm weather in southern regions since October has negatively impacted winter apparel sales, a trend observed across the industry [3] - E-commerce growth is normalizing, with consumers exhibiting more rational shopping behaviors, leading to a spread of consumption throughout the year rather than concentrated during major sales events [3] - The company anticipates a slight increase in overall channel GMV, with a low return rate expected due to policy adjustments aimed at improving sales quality [5] Store Expansion and Operations - As of October 2025, the company has opened 101 super stores, focusing on better locations with higher foot traffic [2][6] - The company is exploring various store formats, including hypermarkets and outlet stores, to ensure successful expansion in 2026 [6][11] - The operational efficiency of super stores has been enhanced through optimized store layouts and customer engagement strategies [7][8] Brand Development - The Wenwei brand emphasizes its Nordic outdoor heritage and high cost-performance ratio, with plans to expand its SKU offerings to include footwear and small equipment by 2026 [9][10] - The brand has successfully established a market presence through pre-launch marketing on platforms like Xiaohongshu and Douyin [9] International Expansion - Since 2015, the company has pursued an internationalization strategy, focusing on high-end product lines to penetrate the European and American markets, with 1,400 global sales outlets as of mid-2025 [12] - The company expects to double its overseas business by 2026, contributing nearly 5% to overall revenue [12] Research and Development - The company plans to increase R&D investments to maintain product quality and price advantages, which are crucial for growth [13] Collaboration and Innovations - The partnership with Meituan for flash sales and group buying has been successful, providing rapid delivery services and maintaining low discount rates for distributors [15] - The company is preparing for a strong sales period in Q1 2026, anticipating robust demand due to the late Chinese New Year [16] Future Events - A product ordering meeting is scheduled for mid-December 2025, which will be open to investors, providing insights into the company's operations and product development [17] Additional Important Information - The company is actively working to improve accounts receivable turnover and has seen improvements in the aging structure of receivables [14] - The focus on maintaining a low return rate and improving sales quality is a strategic priority moving forward [5]