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 2,498,954 square meters and a total operating area of 1,687,846 square meters as at 31 December 2017. 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 31 December 2017, the Group operated 15 comprehensive lifestyle centers with a total gross floor area of 1,853,392 square meters. The operating area of the comprehensive lifestyle amenities accounted for 33.4% 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 SERVICE PLATFORM
The Group will focus on development of three aspects in terms of the industry chain: (a) front-end industry chain development. By fully tapping into and utilising member resources, the Group will further integrate the member resources of its own industry or related industries, and market products effectively and accurately to a wider range of customers and provides comprehensive services in an expanded new retail platform; (b) back-end industry chain integration. The Group will connect existing customer and platform resources with suppliers’ source products
via the Group’s self-owned operations under G‧LIFE series, 7-Eleven convenience stores, self-owned brands such
as Aquila Doro, etc. and accelerate the expansion of these resources outside the Group’s existing network to result in more efficient and stable profitability, realise the interaction and development of both content and platform, and share successful operating results of the distinctive commercial brands; and (c) business management capability output. The Group will 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, G‧LIFE series
stores, 7-Eleven convenience stores and industry chain upstream and downstream resources. Coupled with quality and convenient comprehensive lifestyle service offerings, the Group has successfully created a “24-hour operating Golden Eagle” and achieved online and offline two-way marketing, thus driving a rapid growth of customer traffic and sales. As at 31 December 2017, the App has registered over 7.1 million downloads of which 1.9 million VIP customers connected their VIP membership cards with the App. The App is the most active mobile application in the department store industry in China. At the same time, the Group has successfully secured over 2.9 million loyal VIP customers. During the period under review, spending of the VIP customers accounted for 56.1% 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 31 December 2017, the Group had approximately 4,620 employees.