Dalian China

Dalian China

The Opening and Reform of ChiThe Opening and Reform of China & the Rise of Chinese Retail na & the Rise of Chinese Retail

BusinessBusiness

— — We Are the Dashang Group From Dalian

Lu LuLu Lu

The Opening and Reform of CThe Opening and Reform of China has hastened the Rise of hina has hastened the Rise of

Chinese Retail BusinessChinese Retail Business

The high growth of Chinese economy in the past three decades has created the high demand and high speed in the history of Chinese retail market.

The transform of Chinese economy towards the socialist market economy system has accomplished the brand new market, commodity-oriented operating system and mode of Chinese retail industry.

China Joining the WTO has become the most direct motive power to bring Chinese retail business in line with the international rules, which has hastened the Chinese retail business to quickly move towards internationalization and modernization.

Three Significant Changes of Chinese Retail Business Three Significant Changes of Chinese Retail Business Resulted from the Opening and Reform of ChinaResulted from the Opening and Reform of China

The Experience of Dashang Group’s

Innovative Development

Dalian China

Dalian is one of the 15 sub-provincial cities in China, as well as the largest port city within northeast China.

Introduction of Dalian

Dashang Group

Chairman of the Board

There must be a super corporate in China retail industry. There must be a position for the Chinese commercial business in the world.

Niu Gang

Store Exhibition of Dashang GroupDashang Group

Main

Store of Harbin

MYKAL

Shen

-yang New Mart

Shopp

-ing Mall

Da-lian New Mart Shopp

-ing

Mall

Dashang Group

More than 200 stores distributing over half of China.

Total construction area of 10 million square meters.

Total sales revenue of 131 billion in 2012. Total employees of 230,000 persons.

Retaining its position in Chinese Enterprise 100.

DA

SHANG

GROUP Shop Distri-bution Map

1992 2012

Construction Area

50,000 m²

Construction Area

10 million m²

Total construction area & Total staff of Dashang Group Stores

DASHANG GROUP

Total Staff2,000

persons

Total Staff

230,000 Persons

1992

2010

2011

2012

0.5B

2002

86.1B12.79B 110.1B 131B

Sustained rapid growth of sales in 20 yearsSustained rapid growth of sales in 20 yearsDASHANG GROUP

1995

1999

1.67B 5B

2007

50.2B

1992 2012

+262 times

Units: RMB

Dashang Group

Major Business

Constitution

The Driving Force Behind Dashang Group’s Innovative

Development

Dashang BuDashang Business Modesiness Mode

Shareholding RefShareholding Ref

ormorm

Joint venture

partnership

Mu

lti-system stim

ulates

vitality

The Operating Practice of Dashang Group’s

Innovative Development

Multi-modal store expansion

Multi-format mixed operation

Multi-store subdivides market

Diversity creates shopping district

Contents

Multi-system stimulates vitality Multi-format mixed operationMulti-format mixed operationMulti-format mixed operationMulti-format mixed operation

321

Multi-modal store expansion

Department store

chains

Five-star Hotels

commercial real estate

Super-market chains

Electrical appliance

chains

www.66buy.cn

Multi-Formats

Mykal

New Mart KINGSON

Department

Store New Town Shopping Mall (NTS)

Multi-store

The World Today is Here

Description of the contents


MYKAL

Originated in Japan, developed in Dalian, positioned itself to satisfy

Chinese high-end customer needs with international and national first line brands, MYKAL has succeeded in Dashang and become one of the

comprehensive high-end shopping malls in China.

Main store of Harbin MYKAL

Main Store of Dalian MYKAL

NEW MART 创新生活每一天

新玛特 NEW MARTInnovative Life

Everyday

As the brand new retail model created by Dashang Group, New Mart shopping mall has an unique strong shopping mall overtone. With the average area of over 100,000 square meters, New Mart has provided the customers with one-stop shopping experience by combining restaurants, department stores and other leisure places all together. Featured as young, fashion and vogue, this style has become part of modern local life and the typical representative of Chinese department shopping center centralization.

Zhongjie Store of Shenyang New Mart

Dalian New Mart


M4

KINGSON Lead the Fashion

Trend

Positioned as mid-price range department store ,

Kingson advocates to the young and chic customers in

third/four-tier cities.

Dalian KINGSON

Dong gang KINGSON


Department Stores Modernize Local Old

Famous and Established Stores

Based on the local old famous and established department store acquired by Dashang Group and reformed into modern integrated shopping center, it

has tremendous commercial reputation and market appeal.

Haerbin New 100 department store

Dalian Department Store


New Town Shopping

Mall (NTS)

With the exploitation and construction of Chinese new town and the countryside retail market planning, NTS, as an unique store model, has been established and

developed in the extension of new country and new town grid.

Dashang Supermarket

Laohu Tun NTS

Dashang Business District

New strategies of Dashang Group responding to the changes of retail market

Self-sale & Direct-

marketing

New strategies responding to the changes of retail market

Through the direct cooperation with

the brand company, banning the

middle men, Store can run

themselves at the sales end, boost

profit margin and share to the

customers. The radical reform of

this new business model lies in: the

Omission of middle stages in

commodity circulation, reduction of

the commodity price, improvement

of retailers management abilities

and the optimization of supply chain

links.

Private brands Dashang has founded its industrial-

products and grocery private brand

company, Dashang liquor store,

Dashang watch, Dashang Tea and

other professional company. With

the operating characteristics of

dozens of private brands &

thousands of commodities, Dashang

has changed operating homogeneity

and increased market

competitiveness and profitability.


“Centralized Procurement” & “Unification & Antinomy”


“Centralized Procurement” :

The specific commodity department,

containing the whole brands and modes of

operation of all the department stores,

supermarkets, restaurants and rental

business, has been founded to take charge of

all the procurement, negotiation, contract

terms and position adjustment of counters

related to all the categories and brands, thus

having a strong voice in the market and

optimizing the supplier management.

“Unification & Antinomy” :

To cope with the e-business, the value of

Unification & Antinomy should be deployed

in the business. Unification means the

ultimate unification with e-business by

blending and permeating business both

online and offline ; Antinomy means each

party playing a complementary and

indispensable role respectively. Dashang

group, taking the platform of “66.com” ,

seeks to cooperate with all the high-quality

professional company and produce new

breakthroughs in the effective blending of

online and offline business.


“Three Zero” “One Rate”

Three zero means zero inventory, zero capital

occupancy and zero decorate charge.

Through constrict control of the above , the

potential risks of self-running commodities,

such as gold and major appliances , has

been effectively guarded. Through refusing

to provide the decorate charge for

international brands, the market rules has

been more fair and reasonable. In

consequence, we managed the everlasting

uptrend of the net profits in despite of the

downturn of the market environment.

One rate means the management mode of one

actual gross profit rate. We advocate

“transparent marketing “ in the presence of the

consumers and emphasize on the “transparent

profit margin” between providers and

suppliers, and also completely eradicate

“opaque working”, which will actively boost the

Standardization of retailing order.

Check and Balance

by three parties


Check and Balance by three parties , refers to the

effective regulation of retailing behavior through

scientific balancing relationship . In respect of

organization framework and with the purpose of

multi-party balances, multi-level retardant to

block the management leak, a series of institution

and regulation as well as vertical management

has been set up from top to bottom

corresponding to the huge commodity

department, including “Approval Committee of

Contracts and business”, ”Supervision and

Prevention center"," Loss Prevention

department”, “Capital Department”.

Opening Stores is the

Absolute Principle


In order to form a new pattern of store system

which is centered by the urban CBD, framed

by the regional business center, and based

on the commercial facilities, Dashang group,

taking the advantage of the multi-format &

multi-store development mode, aims to build

up the four-level store network covering city,

town, country and village, thus satisfying the

newly appeared construction demands of

urban new district, citizen community, new

town and new village during the new round

of China urbanization process.

THANK YOU!

Documents

Dalian China