1.1Company Background
Catalog is a member company under the Swire Group. Established at 1816, Swire has now developed into a big group made up of 9 corporations. Its business ranged from property, aviation, agribusiness and food chain, marine service to trading and industrial, crossed over 5 boundaries through 15 regions. Among the companies under Swire, Swire Resources Limited acts as a retailer and wholesaler in the area of multi-brand sport and casual footwear and apparel and functional sport equipment in Hong Kong. It operates both single brand shop and multi-brand shop. Catalog, Marathon and Gigasports are examples.
Being a member of such an enormous company, Catalog is benefited in many different ways. First of all,with such a strong background, Catalog shares reputation of Swire Resources Limited and brand influence. Swire Resources Limited operates shops in different malls, which means it has many business partners in different aspects, such as, the property owners of the malls, logistic companies, etc. From the past trading experiences, those companies cooperated with Swire Resources Limited may welcome the company also operated by Swire, because of the good reputation and performance of Swire. For example, Marathon and Catalog have shop in New Town Plaza and other shopping malls under the operation of Sai Hung Kai Properties, like, Sunshine City Plaza. In other words, Catalog's bargaining power to its suppliers is high.
Catalog’s suppliers include the operators of the shopping malls and the suppliers of the products. Product range of both Marathons and Gigasports covers sport equipment and footwear, some of them under the brands also sold in Catalog. The three companies make quite a number of purchases all together. As the relationship of suppliers and retailers is interdependent, thus, the importance of Catalog to its suppliers and its suppliers to Catalog increase. Therefore, the