Heineken and China Resources to sign non-binding Auchan to enter agreements to join forces in China Qingdao market again by unmanned convenience store On August 3, Heineken announced that it has signed non-binding agreements with China Resources Enterprise, Limited ('CRE') and China Resources Beer (Holdings) Co. Ltd. ('CR Beer') to create a model long-term strategic partnership for Mainland China, Hong Kong and Macau (together 'China'). In the context of this partnership, Heineken will become CRE's 40% minority partner in holding company CRH (Beer) Limited ('CBL'), which controls CR Beer, the undisputed market leader in the world's On July 23, Auchan team largest beer market, China. up with Hisense to open As part of the strategic partnership, Heineken China's current operations will be combined with CR five Auchan's 24-hour Beer's operations and Heineken will license the Heineken® brand in China to CR Beer on a long-term basis. Together, Heineken , CRE and CR Beer are perfectly positioned to win in the unmanned convenience rapidly growing premium beer segment in China. stores at the same time in Terms of the non-binding agreements Hisense Huangdao The geographical coverage of the strategic partnership with CRE and CR Beer is China. Under the Industrial Park. These non-binding agreements, Heineken and CRE or CR Beer (as applicable) will enter into the following transactions to be completed simultaneously: unmanned convenience stores help to meet the ● Heineken will acquire a shareholding of 40% in CBL and CRE will own the other 60% in CBL. The Partnership will be governed by a shareholders agreement. CBL holds a controlling daily shopping needs of interest about 15,000 employees in of 51.67% in CR Beer, a company listed on the Main Board of The Stock Exchange of Hong the park. Nearly 300 people Kong Limited, operating the beer business in China. Post completion of the transaction, Heineken will have an effective 20.67% economic interest in CR Beer and will get each day have shopped in representation on the board of CBL and nomination rights to the board of CR Beer. Heineken one single store in the trial will invest a total amount of HK$24.3 billion in CBL, which translates into an implied purchase operation. price of HK$36.31 per share in CR Beer.
● CRE will acquire 5.2 million Heineken N.V. shares (equivalent to a 0.9% shareholding in
Heineken N.V.) which are currently held in treasury for a total consideration of €464 million or €88.66 per share. ● Heineken will contribute its operating entities in China, including three breweries, into CR Beer for a total consideration of HK$2.4 billion, through a share sale transaction.
● Combined, these transactions will result in a net investment of €1,948 million (at current exchange rates) by Heineken .
● Heineken and CR Beer will enter into a Trademark License Agreement (TMLA) for the Heineken® brand in China. Heineken and CR Beer will also sign a Framework Agreement to allow CR Beer to leverage Heineken’s global distribution channels to support and accelerate the international growth of CR Beer's Snow® brand and its other Chinese brands, as well as to govern the use of other premium brands owned by Heineken which may be licensed to CR In the future, Auchan Beer in China. (China) will also cooperate with Hisense Smart Com- JD Home to be opened to ten cities and to cover 60 million people mercial to open four un- manned convenience On July 26, JD Daojia announced that it will expand its business to Guiyang, Nanning, Jiaxing, Jinan, stores in Hisense Pingdu Yangzhou, Zhenjiang, Nantong, Xiangtan, Huizhou and Taiyuan by the end of August, covering more Industrial Park, which is than 60 million people. expected to be launched in By the end of this year, the number of JD Daojia covered cities will increase to 55, reaching full cover- September. age in first- and second-tier cities, and selective coverage in third- and fourth-tier cities. Next year, JD Daojia will continue to expand its coverage, bringing the ultimate experience of online shopping with one-hour delivery service to more shoppers. Lianhua Supermarket to purchase 180 million goods from Two Meituan ella supermar- Tmall ket to open at the same time
On July 25, Lianhua Supermarket announced that it has entered into a product On July 26, Meituan Ella Supermarket procurement framework agreement with Zhejiang Tmall. It will purchase products was officially launched in Wuxi. The two including but not limited to food, fresh foods and industrial products from Zhejiang Tmall. stores opened on the same day were The cooperation period is from July 25, 2018 to December 31, 2020, and the maximum Guangyi Store and Maoye Yibai Store, transaction amount was 180 million yuan. which were located in Wuxi Jingdong According to the Commodity Purchasing Framework Agreement, the maximum annual Square and Maoye Times Square. transaction amount of Lianhua Supermarket from July 25, 2018 to December 31, 2018, As Wuxi’s first O2O supermarket 2019 and 2020 is RMB 20 million and RMB 60 million and RMB 100 million respectively. integrated fresh food retail, dining, For the signing of the purchase agreement, Lianhua Supermarket said that this will help |eCommerce and delivery service, Ella it to enhance the competitiveness of its products and enhance its ability to gather Supermarket has also upgraded the customers with the price advantage of Zhejiang Tmall platform, thus promoting stable market. operation and long-term development. With further cooperation between the two parties, First of all, two Wuxi stores has it is expected that the categories and quantities of future cooperation will be expanded significantly expanded the store size. and more specific commodity procurement contracts will be signed. Take Guangyi Store as an example, the Alibaba has invested in the Lianhua Supermarket for more than a year, but the area is about 4,500 square meters, which substantive cooperation between the two sides has not started. As early as last May, is twice bigger than Beijing Fangzhuang Alibaba acquired 201 million domestic shares of Lianhua Supermarket from Yiguo store. The ratio of commodity area and Fresh, holding 18% of the shares and became the second largest shareholder of the dining area account for about 2:1, and Lianhua Supermarket. the proportion of fresh goods is more than 60%. For this investment, Alibaba has also said that in the future, it will reconstruct new retail smart stores through big data, and comprehensively integrate online and offline Secondly, Ella Supermarket uses the big commodities, payment, logistics, membership and other business ecosystems. data analysis to delineate the dining habits and taste preferences of Wuxi consumers, and selects more than 6,000 domestic and foreign high-quality SKUs for shoppers to choose. Based on data insights, Ella Supermarket introduces high-quality imported food from 51 countries and regions, and imported food account for 50% total SKU. Thirdly, Ella Supermarket offers a richer ready-to-eat dining option for Wuxi shoppers. The in-store dining area includes fresh seafood, Chinese food, Japanese food, Teppanyaki and so on. There is also a 30-square-meter class- room area for cooking class. At the same time, except general cashier and self-checkout counters, shoppers can also experience the technology such as "facial recognition payment", or use the Suning Store to set up the Fresh Food Alliance to build official APP to scan the product barcode 5 processing centers to complete the payment.
On July 28, 2018 Suning Store Smart Retail Strategy Conference was held at Nanjing In- ternational Expo Center. Suning said that Suning store is the liaison role of Suning’s smart retail. Suning store represents Suning's ambitiousness of full category expansion. At present, the number of Suning stores has reached 1,200 and 7 stores are newly opened daily. President of Suning Retail Group Suning Store Bao Junwei said that the opening speed of small stores in the second half of the year will be increased to 30 per day. Especially in first-tier cities such as Beijing and Shanghai, 500 stores will be opened in one year. In addition, Suning Store and Mengniu have established a fresh food alliance Scan the QR Code to with hundreds of well-known suppliers to build an open fresh food supply chain. follow us on WeChat According to Bao Junwei, in the future, Suning store will establish five fresh food Subscribe the Newsletter processing centers in East China, Central China, South China, North China and Southwest by sending request to: China. With the improvement of the storage and cold chain system in 43 districts, cold chain products such as fresh, daily and cooked food will be presented to shoppers in a [email protected] better way. The Chinese eCommerce scene never ceases to amaze in its uniqueness and complexity — traditional and emerging eCommerce players being no exception. Both forces explore user value with data, taking the Omni-channel approach by breaking barriers and navigating new business modes to achieve exponential growth from 1 to n.
The nature of eCommerce is no longer limited to sales itself, but more importantly, in multiple dimensions, including content, community, marketing, product innovation, and service. As a result, it has created more requirements for brands, including how to position eCommerce at a high level and get a head start in the dynamic market.
For an eCommerce insights feast, join us in August for Kantar Consulting’s 2018 eCommerce and Digital Forum.
Agenda at a glance
We will dive into the Where to play and how to win in a new eCommerce landscape, digital and eCommerce world market trends, eTailer strategies, New brands’ opportunity from cross-border eCommerce category development, O2O: Blue ocean for channel expansion shopper insights, best practices, Meituan-Dianping: New opportunities for and solutions-not only to present you brand marketing in the O2O’s full contexts an eCommerce market overview, but also to spark your creativity in business strategy. Omni-channel shopper journey: Insight and opportunity Zhihu: The era of knowledge - How to leverage knowledge sharing to bene t content marketing
No content, no eCommerce: De ning new eCommerce content
Venue: St. Regis Shanghai Jing’An (third oor) Tencent: When social commerce meets 1008 Beijing West Road, Shanghai smart retailing - an era of user-centric integrated marketing Date Wednesday, 22 Aug 2018 Omni-channel shopper activation & time: 9:00 a.m.-18:00 p.m. (registration starts at 8:30 a.m.)
Price: RMB 8,000 per person (includes lunch bu et, tea break, and tax) For registration, please contact: 10% o for 3 attendees, 20% o for 6 attendees Eva Wu - Associate Marketing Manager Email: [email protected] Tel: 021 2287 0559 MP: 150 0066 5769 Where to play and how to win in a new digital and eCommerce world Oceanne ZHANG, Director of eCommerce and Omni-Channel, Kantar Consulting
After several years of rapid growth, China’s eCommerce market has become the world's biggest - and also the most challenging market to win. Future eCommerce growth will not come from our comfortable areas. Consumers are more demanding and less loyal, and their digital life is increasingly fragmented and hard to quantify. New online competitors have emerged with unique innovation, and di erent business models and touchpoints provide various options but hard-to-measure ROI.
Therefore, how to further maintain eCommerce growth momentum and take the lead in every digital and eCommerce evolution remains a central question brands must answer when they design their eCommerce strategies. Kantar Consulting will kick o the full-day event with extensive content around future eCommerce growth drivers, helping our clients identify the most relevant eCommerce business opportunities to design their “where to play” and “how to win” strategy in a new digital world.
New brands’ opportunity from cross-border eCommerce Oceanne ZHANG, Director of eCommerce and Omni-Channel, Kantar Consulting Shawn LOU, Associate Consultant of eCommerce and Omni-Channel, Kantar Consulting
With the rise of consumption from China's new middle class and the further expansion of free trade zones, cross-border eCommerce business has quickly transitioned from emerging to one of the most-used online shopping destinations in China.
What’s unique about cross-border eCommerce shoppers? How should brands optimize product portfolios and capture new route-to-market opportunities from cross-border eCommerce? In this session, Kantar Consulting will show you cross-border eCommerce market's latest trends, category opportunities, and shopper insights to help you better build your cross-border eCommerce strategy.
O2O: Blue ocean for channel expansion Han YANG, Consultant, eCommerce and Omni-Channel, Kantar Consulting Bill CHEN, Director of New Business, Toge Data Technology Co. In the new retail context, the irreversible boundary blurring between online and o ine commerce is becoming one of the most in uential trends for brick-and-mortar retailers. As O2O shopping behavior continues to expand, more brick-and-mortar retailers and brands have begun to explore opportunities in the O2O market. The ourishing of this market creates a new blue ocean for both selling and marketing.
In this session, Kantar Consulting will present the up-to-date O2O market landscape, shopper insights, and category performance, along with our prospects of where this market is heading, to help brands better understand opportunities in this exploding market and develop O2O-speci c strategies. Meituan-Dianping: New opportunities for brand marketing in the O2O’s full contexts Jerry Chen, General Manager of Meituan-Dianping Strategic KA Dept.
With consumption upgrade, segmented consumers and diversi ed demands bring new opportunities and challenges for brand marketing. Supported by the smart searching and recommendation system, the application of location-based services in various lifestyle contexts makes it possible to forecast users' behaviors as well as connect di erent contexts for more accurate marketing. How could brands tap the value and unleash the potential of full-context consumption to improve marketing eciency? Meituan will share with us its exclusive insights of new brand marketing opportunities in the O2O’s full contexts.
Omni-channel shopper journey: Insight and opportunity Julia XIE / Ge HU, Shopper Insights, Kantar Consulting
The context of deepening online and o ine integration requires brands’ competency to provide shoppers with personalized experience at any touchpoint in any given moment. The primary tasks of building such core competencies are to identify, pro le, and size brands’ core shopper groups; to determine key online and o ine touchpoints for each of the groups; and to understand how to impact them along their path to purchase. In this session, Kantar Consulting will deconstruct the complex shopping journeys of core target shopper groups to win Omni-channel shoppers.
Zhihu: The era of knowledge -How to leverage knowledge sharing to bene t content marketing Xin CHEN, General Marketing Manager, Zhihu
With consumers’ education levels rising, the in uence of knowledge over purchase and consumer impact is gradually taking shape. Consumers are more likely to select products based on their own judgment and value orientations, focusing more on their quality of life and spiritual ful llment. Knowledge-based content has become the key to attracting the intellectual elite.
In this session, Zhihu, the leading knowledge-sharing community, will use practical case studies to share the secrets of winning consumer minds, revealing how brands can in uence consumers and conduct in-depth communication with consumers to build brand image via their platform.