GIORDANO International is a casual clothes retailing chain. South China Research recently put a sell on the stock, saying it was too exposed to the financial crisis. Its main markets - including Hong Kong, Taiwan, Singapore and South Korea - suffer sluggish sales or weak currencies. The company's strategy is to reduce expenses by, for example, renegotiating rental leases, but the pace of cost-cutting is slow. Giordano is not cutting staff and offers packages about 10 per cent higher than competitors' to maintain staff quality and morale. But it is slashing wages it offers new employees and is taking on more part-time workers. The company faces enormous price pressure from other Hong Kong retailers, some of whom are dumping inventory for cash. The company still has no stores in Beijing or Shanghai despite 200 outlets elsewhere on the mainland. Other regions are not as weak as Hong Kong operations-wise. Sales are expected to remain flat in Taiwan and Singapore and are recovering in Korea and Malaysia. Hong Kong dollar revenues are falling, however.