Breaking up with the international navigation giants and thinking about their own brands

Yao Ming in the halo of equity, positioning in the professional multi-system satellite navigation positioning products manufacturers of the strong (002383, closing price of 57.02 yuan) easily attracted the attention of the market. And in the eyes of many people in the industry, the company and the international navigation giant Garmin years of close cooperation, it has greater practical significance, was once considered to be one of the company's investment highlights. However, the company yesterday (November 11) night suddenly announced that the company no longer with Garmin renewal of the exclusive distribution agreement.　　This means that the company will be the main to push the independent brand in the future, but whether the smooth replacement of Garmin products market share remains to be seen. All think strong in the announcement that the development of independent brand products is still the company's strategic direction, in order to concentrate on the completion of independent product development, production and sales, the company decided that the exclusive distribution agreement on December 31, 2010 will no longer renew the agreement with Garmin.　　The company believes that, according to the company's current situation, when the company no longer with Garmin Renewal "Exclusive distribution agreement", the company's future professional market performance will not have a significant adverse impact. Garmin and navigation cooperation, the earliest date to 2002, in accordance with the provisions of the Agreement at that time, Garmin designated as its products in China's exclusive distributor.　　In the early days of the development, this agreement has brought great impetus to the development of the company. But with the development of the public, especially after the successful landing in the capital market, the cultivation of independent brands poured more enthusiasm. January 20, 2010, the two sides signed the "< exclusive distribution Agreement >" Supplementary Agreement, under the Supplementary agreement, in the mass consumer market, the company abandoned GARMINPND (Portable automatic navigation system) products exclusive agency rights, but has achieved the right to sell their own branded products, but in the professional market , the mode of cooperation between the two sides remains unchanged, and the company still fulfills the terms of the exclusive distribution agreement.　　However, the company formally announced that the future will no longer sign the relevant agreement. Industry insiders said that the navigation giant Garmin and the strong relationship between the people are known, this pair of cooperation for many years old partner but because of the single fly and each of them.　　And in the company listed at the beginning, and Garmin technical advantages by many brokers are considered a big investment highlights. A brokerage analyst said that 2007 ~2009 years, the company's procurement of Garmin companies are 222 million yuan, 168 million yuan and 142 million yuan, accounting for the total amount of procurement in the period of 69.51%, 62.64% and 61.13%.　　If the company ends up working with Garmin, the two sides will become rivals and may create uncertainty about the short-term income of PND products. However, to end the impact of the relevant agreement, the public in the announcement of the backbone of the company will not cause a major adverse impact on the future production and operation, and in line with the company's development of independent brand products warslightly developing direction. "The company said that the professional data acquisition products, the company has the independent development and production technology, mastered as a professional handset extension product development technology, and has its own sales channels and sales brands, the company's self-developed E7 series of open mobile GIS platform and G5 series Data Collector,　　Has achieved good market performance. In addition, in the data acquisition products, the company's independent research and development products income of 56.68 million yuan, professional handheld handset income of 118.49 million yuan, independent research and development products and professional handheld handset income ratio of about 3:7; this January-September, the company's independent research and development products and professional handheld handset revenue than about 1:1. Practice has proved that independent research and development products more in line with the needs of industry customers and local customers in China.