Our Business Lines

TV Direct Sales Platform
A key component of our media platform is our TV air time presence and our ability to efficiently manage our media time to drive the performance of our TV direct sales platform.  Our TV direct sales programs, which are typically five to ten minutes in length, are currently aired on 28 national satellite TV channels and seven local channels in China. Combined, we broadcast to over 90% households in China. Our extensive media network provides broad exposure for many small and medium enterprises to promote their brands and market their products throughout China.

Non-TV Direct Sales Platform
To leverage our strong media platform and comprehensive customer database, we also market and sell our products through third-party bank channels, catalogs, outbound calls and the Internet. Non-TV direct sales allow us to further expand our customer database and improve our ability to generate repeat sales, thereby gaining in importance in the future and lowering the overall volatility of revenue.

Nationwide Distribution Platform
Our nationwide distribution network further extends the media effect on the ground through local and print media and broadens our customer reach on a local/regional level. Through working with 90 distributors, our products reach approximately 20,000 retail outlets covering nearly all of the cities and counties in China. We typically grant our distributors the exclusive right to distribute selected products in their respective territories. Complementary to our TV direct sales platform, our nationwide distribution network extends our product lifecycles and maximize the TV advertising effect through additional promotion in local TV and print media and other joint promotional efforts.

Joint Sales Arrangements
We entered into joint sales arrangements in 2006. Under a joint sales arrangement, in addition to receiving revenue from sales of products via our direct sales platforms, we also receive additional payments from our joint sales partners based on sales of featured products through their own distribution channels. During 2010, our cell phone products and cosmetic products were the two major categories of products subject to joint sales arrangements