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Europe's leading fresh food supermarket operator Champion introduced a new way of selling to China Thursday with the opening of its first Asian outlet.
Covering nearly 3,000 square metres, the supermarket is located in South Beijing's bustling residential area of Jinsong.
Phillipe Pauze, Champion president, explained that the stores were different from the hypermarkets operated by its parent firm, Carrefour.
"Champion supermarkets are specifically engaged in providing various fresh food, including vegetables, fruits, meat, seafood and snacks to the customers, so our chain stores are all set up in residential communities," said Pauze, who is also the general manager of Carrefour's supermarket group.
As a professional food retailer, Champion boasts rich experience and knowledge in the storage, selection and distribution of foodstuffs, as well as food safety supervision.
"As an arm of the Carrefour Group, we share purchasing resources with Carrefour, which may guarantee a price advantage in every Champion supermarket," said Pauze.
Champion joined forces with local chain Beijing Shoulian to operate the Beijing outlet, with Champion and Shoulian taking 65 percent and 35 percent stakes in the joint venture.
Pauze explained that Beijing was the location of the firm's first Asian outlet as a result of China's huge market potential, the nation's growing demand for safe and high quality food and the commercial possibilities offered by the 2008 Beijing Olympics.
The Beijing municipal government wants to accelerate the development of commercial services in residential communities, with the opening of 500 convenience stores and supermarkets this year.
By the end of last September, 1,566 such shops have opened for business in the capital, but this only covers 65 percent of the city's residential areas.
"There is a lot of space left for my firm, since there are still no professional food chain retailers operating in Beijing," says Pauze.
But he acknowledges that competition will be tough, with challenges being posed by both foreign and domestic retailers and fast food restaurants.
There were 4,277 chain stores, involving hypermarkets, supermarkets and convenience stores, in the capital city, whose sales volume made up 24.2 percent of the city's retailing sector by the end of last year, according to sources with the Beijing Commerce Bureau.
Around 85 percent of fresh food consumed by Beijingers is purchased in agricultural markets.
"We believe our reliable goods, competitive prices and pleasing environment are lucrative," says Pauze, "Furthermore, we have conducted research on the habits and tastes of local consumers, meaning we will adjust our food structure, counter layout and management style to adopt to the local market."
With the launching of the Beijing Jinsong Champion Supermarket, the French conglomerate has 2,292 fresh food supermarkets in 10 nations, with a business area in an excess of 1.5 million square meters and annual sales volume reaching 100 billion yuan (US$12.05 billion).
(China Daily April 30, 2004)
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