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SPAR Group Secures New Joint Venture in China
Tarrytown, NY - July 26, 2010 - SPAR Group, Inc. (NASDAQ: SGRP) (the
"Company" or "SPAR"), a leading supplier of retail merchandising and other
marketing services throughout the United States and internationally, today
announced the structuring of a new Joint Venture in China with its new partner
Shanghai Wedone Marketing Consulting Co., Ltd. The new joint venture will
provide merchandising and marketing services and have national market presence
in the country.
SPAR Group has
been Health Mart's dedicated marketing and merchandising services partner for
the past four years, servicing more than 2,600 Health MartŪ stores in all 50
states. Part of the Company's services include consumer product planograms
consisting of new product cut-ins of over 188,000 new items each year,
implementing over 46,000 category resets each year and completing over 30,000
annual visits and over 125,000 in-store hours.
The new joint
venture will be called SPAR (Shanghai) Marketing Management Company Ltd. and
SPAR will own 51% of the Joint Venture while Shanghai Wedone Marketing
Consulting will own 49% in accordance with the laws of the People's Republic of
China. The new company will provide merchandising and related marketing
services to manufacturers and retailers throughout China.
Shanghai
Wedone Marketing Consulting is a comprehensive marketing management company
that provides brand communication and retail marketing management service in
China. The company works with more than 50 international brands such as
Coca-Cola, Unilever, Johnson & Johnson, Swatch and several prominent
Chinese brands such as Meng Niu Dairy, Guan Sheng Yuan and Dong-e E-jiao. Their
business covers all tier 1, 2 and 3 cities in China equating to more than 150
cities throughout the country.
"We
are excited to join forces with SPAR to offer a national merchandising and
marketing services group, providing our client manufacturing companies in China
with a strategic advantage in one of the world's largest and fastest growing
consumer markets. Our new venture provides for unlimited opportunities to
capitalize on the growth of the region," stated James Qian, CEO of Shanghai
Wedone Marketing.
Gary
Raymond, President and Chief Executive Officer of SPAR Group, stated, "It is no
secret that China is one of the fastest growing economies and most promising
markets for our marketing and specialty merchandising services. We have
researched diligently to find a synergistic partner to maximize the value of
our presence in China and are pleased to reach an agreement with Shanghai
Wedone. We believe the team at Shanghai Wedone Marketing is the optimal partner
to continue our growth in China."
Mr.
Raymond continued, "Our strategy internationally has been to partner with
companies that would benefit from our enhanced technology and expertise and
combine that with an experienced local management team. Each subsidiary uses
the same powerful proprietary U.S. based technology allowing logistics,
communication and reporting, translated into their local language. This
strategy remains in line with our objective to increase top line growth while
improving our gross margins and profits. We see tremendous expansion potential
not only in China, but in several other emerging market countries that we hope
to take advantage of in the future."
About
SPAR Group
SPAR
Group, Inc. is a diversified international merchandising and marketing services
company that provides a broad array of services worldwide to help companies
improve their sales, operating efficiency and profits at retail locations. SPAR
Group provides product services, project services, in-store events, radio
frequency identification ("RFID"), technology services and marketing research
covering all product and trade classifications, including mass market, drug
store, convenience store and grocery chains. Product services include product
additions; placement, reordering, replenishment, labeling, evaluation and
deletions, and project services include seasonal and special product
promotions, product recalls and complete setups of departments and stores. The
Company operates throughout the United States and internationally in 11 of the
most populated countries, including China and India. For more information,
visit the SPAR Group's Web site at
www.sparinc.com.
Certain
statements in this news release are forward-looking, including (without
limitation) growing revenues and profits through domestic growth and domestic
and international acquisitions, attracting new business that will increase SPAR
Group's revenues, continuing to maintain costs and consummating any
transactions. Undue reliance should not be placed on such forward-looking
statements because the matters they describe are subject to known and unknown
risks, uncertainties and other unpredictable factors, many of which are beyond
the Company's control. The Company's actual results, performance and trends
could differ materially from those indicated or implied by such statements as a
result of various factors, including (without limitation) the continued
strengthening of SPAR Group's selling and marketing functions, continued
customer satisfaction and contract renewal, new product development, continued
availability of capable dedicated personnel, continued cost management, the
success of its international efforts, success and availability of acquisitions,
availability of acceptable acquisition financing and other factors, as well as
by factors applicable to most companies such as general economic, competitive
and other business and civil conditions. Information regarding certain of those
and other risk factors and cautionary statements that could affect future
results, performance or trends are discussed in SPAR Group's most recent annual
report on Form 10-K, quarterly reports on Form 10-Q, and other filings made
with the Securities and Exchange Commission from time to time. All of the
Company's forward-looking statements are expressly qualified by all such risk
factors and other cautionary statements.
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