BUILDING NATIONWIDE CHAIN NETWORK WITH YANGTZE RIVER DELTA AS CORE
Since the opening of our first chain store, Nanjing Xinjiekou Store, over 22 years ago, the Group has successfully opened 32 self-owned stores with a total gross floor area of 2,489,807 square meters and a total operating area of 1,702,625 square meters as at 30 June 2018. These stores span across four provinces and one municipality, namely Jiangsu, Anhui, Shaanxi, Yunnan and Shanghai, covering 18 cities including Shanghai, Nanjing, Suzhou, Nantong, Yangzhou, Xuzhou, Taizhou, Huai’an, Yancheng, Suqian, Liyang, Danyang, Kunshan, Wuhu, Ma’anshan, Huaibei, Xi’an and Kunming.
Leveraging on our leading position and strong competitive advantages in Jiangsu Province, the Group will continue to reinforce our market leadership and presence in the regions of Jiangsu, Anhui, Shaanxi, Yunnan and Shanghai by establishing comprehensive lifestyle centers which have potential for the Group’s long-term competitive strengths and business growth. Meanwhile, the Group will gradually establish a nationwide retail chain network by actively exploring opportunities in first- and second-tier cities as well as tapping into third-tier cities with immense potential for growth.
CONTINUING TO ENHANCE ORGANIC GROWTH AND DEVELOPING COMPREHENSIVE LIFESTYLE CENTERS
Capitalising on the mainstream customers’ demands for consumption upgrade, the Group is developing itself into a professional operator which provides high quality, innovative and comprehensive services, prioritising the development of functions and product categories that enhance customers’ shopping experience, with high growth potential and high gross margin, including lifestyle functions and amenities such as children’s experience, maternity and baby care products, healthcare, lifestyle tourism, household, culture and creativity as well as automobile integrated services etc. in order to enhance its comprehensiveness for shopping, leisure and family gatherings. As at 30 June 2018, the Group operated 15 comprehensive lifestyle centers with a total gross floor area of 1,844,245 square meters. The operating area of the comprehensive lifestyle amenities accounted for 29.9% of the Group’s total operating area. With the continuous development and expansion of the Group’s controllable resources, the Group strives to continue to enhance its core competitiveness.
EMPHASISING ON INCREMENTAL DEVELOPMENT GROWTH, TAPPING TRENDS OF CONSUMPTION UPGRADE AND RISE OF EMERGING INDUSTRIES INCLUDING CHILDREN AND EDUCATION, HEALTHCARE AND MEDICAL, BUILDING UP ASSET-LIGHT BUSINESS MODEL AND INTEGRATED CONSUMPTION SERVICE PLATFORM
The Group will further secure core resources of new contents, new channels and new VIP members, and formulate capabilities of self-owned asset-light output and integration to meet the needs for long-term development: (i) new contents. To continue to invest and develop new business functions in line with the trend of consumption upgrade, which are profitable, with high conversion, strong stickiness and continuous innovation in content that are also replicable; (ii) new channels. To expand its platform content out of its existing network leveraging on new channels derived and achieve the interaction and development of both content and platform; (iii) new VIP members. To further integrate member resources from the industry or strategic partners, combined with the application of new retail scenes and new technology to explore new VIP members targeting middle-class families and young stylish people, at the same time provide merchandise and comprehensive services more effectively and accurately; (iv) business management capability output. To accelerate the pace of its business management operation output to solidify its asset-light business and inject new drivers for the overall business development.
DEDICATED TO PROVIDING HIGH QUALITY AND INNOVATIVE VALUE-ADDED VIP SERVICES AND OMNI-CHANNEL SHOPPING EXPERIENCE
The Group fully utilises its omni marketing channels, through the use of mobile phone application “goodee mobile App” (掌上金鷹) (the “App”), the WeChat and Weibo social network platforms and the “Electronic VIP Card”,
the Group integrated its Jinying.com (金鷹購) online platform with its comprehensive lifestyle centers, 7-Eleven
convenience stores and industry chain upstream and downstream resources. Coupled with quality and convenient comprehensive lifestyle service offerings, the Group has successfully achieved online and offline two-way marketing, thus driving a rapid growth of customer traffic and sales. As at 30 June 2018, the App has registered over 7.3 million downloads of which 2.0 million VIP customers connected their VIP membership cards with the App. At the same time, the Group has successfully secured over 2.8 million loyal VIP customers. During the period under review, spending of the VIP customers accounted for 53.7% of the Group’s total gross sales proceeds.
LOCALISED OPERATION STRATEGIES WITH WORLDWIDE MANAGEMENT VISION
The Group appreciates the dedication and contribution of its employees and fosters their capabilities, competence and worldwide vision by conducting regular professional training sessions and overseas study trips for both the management and employees. The Group also implements localised management systems for each local market. For each of its stores, the Group recruits local talents to form a management team with local expertise that the Group can utilise on respective markets. As at 30 June 2018, the Group had approximately 3,770 employees.