Strategic Framework · 2026

China eCommerce
Priorities

Three strategic pillars: delivering financial results, identifying OI improvement opportunities, and sustaining Douyin growth momentum.

Financial Goals 40% OI Improvement 30% Douyin Growth 30%
Restricted Access1 / 7
INT / 2026

Three Strategic
Priorities for 2026

Each priority weighted by strategic importance. Clear targets. Disciplined execution.

01
Achieving eCommerce Financial Goals
Weight 40% · Revenue & Margin
02
Pursuing OI Improvement Opportunities
Weight 30% · Efficiency & Savings
03
Sustaining Douyin Growth Momentum
Weight 30% · Hero Items & Brand
Agenda2 / 7

Achieving Financial Goals

Deliver $34.1M revenue. Revitalize Tmall. Leverage Douyin. Maintain margin discipline.

$34.1M
Revenue Target
-5.1%
YoY Decline Baseline
61.2%
AGM / Net Sales
$7.1M
eMarketing Budget
  • ↗Douyin-M — Double-digit growth >10% vs. plan (3.6% YoY). Outperform Levi's.
  • ↘Tmall — Revitalize #1 jeans brand. Limit decline to <5% vs. plan (-10.5%).
  • →Douyin-W — Reset & drive >5% growth vs. plan (-0.5% YoY).
  • ◎VIP — Mitigate risk via targeted assortment & promo optimization (-2.4% YoY).
Priority 1 · Weight 40%3 / 7

OI Improvement Opportunities

Target: $3.0M OI (RMB 21.3M) at 8.8% of net sales — in line with 2025.

LEVER 1
+50bps
AGM improvement through disciplined discount management by inventory category, tiered promotions, agile merchandising, and stronger livestream storytelling.
LEVER 2
-25bps
4W cost savings through CDC migration and improved TP service terms. Target 31.3% of net sales vs. budget.
LEVER 3
-25bps
eMarketing efficiency — diversify channels, prioritize ROI-driven investments, maintain revenue targets with leaner spend.
Operating Income Target
$3.0M
RMB 21.3M · 8.8% of Net Sales
Quarterly OI Reviews AGM +50bps 4W -25bps eMKT -25bps
Priority 2 · Weight 30%4 / 7

Sustaining Douyin
Growth Momentum

Hero Item Program · Integrated Campaigns · Content & Livestream Excellence

  • 🎯Hero Item Program — >50% OTB from shared fabric pool. Robust demand planning & inventory controls.
  • 📢Integrated Campaigns — Cross-platform Tmall+Douyin. Upgraded PDPs. Mix-and-match + paid traffic → >80% sell-through.
  • ⚡2 Key Digital Moments — One per half-year on Douyin. Accelerate growth & acquire new consumers.
  • 🎬Video + Livestream — Short-form video drives traffic to livestreams. Upgraded set design, professional styling, interactive features.
Hero Items >50% OTB >80% Sell-Through 2 Digital Moments Content + Live
Priority 3 · Weight 30%5 / 7

Cost Structure
& Financial Summary

31.6%
4W Costs of Net Sales
9.0%
Warehouse & Logistics
9.3%
Partner Commission
13.4%
Handling & Other
Operating Income
$3.0M
RMB 21.3M · 8.8% of Net Sales
In line with 2025
eMarketing Investment
$7.1M
RMB 50.5M · 20.8% of Net Sales
Growth · Funnel · Brand
Financial Summary6 / 7
2026 Strategic Framework

Deliver.
Improve.
Sustain.

Financial Goals 40% OI Improvement 30% Douyin Growth 30%

Three priorities. One team. Clear targets. Let's make 2026 a year of disciplined growth.

Restricted Access7 / 7
INT / 2026
1/7