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CP (Charoen Pokphand) Group has entered into a joint venture with Inagora, a Japan-based platform specialising in selling Japanese goods to Chinese consumers.
Inagora has about four million registered users and carries 40,000 products including food and household goods on its mobile app and other channels to Chinese shoppers. It has opened a physical store in Zhengzhou, in China, this month to penetrate new markets. Inagora aims to tap into CP's network to deliver orders and strengthen its physical presence in China.
Japanese products are gaining appeal amongst Chinese shoppers. Companies like Inagora market its products well to local shoppers through videos. Besides China, Inagora plans to enter other Southeast Asian markets with its CP partnership.
Charoen Pokphand Group operates in 17 countries with strengths in distribution and food operations. It is based in Thailand where it runs 10,500 7-Eleven stores.
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First store of Lots Wholesale Solutions opens in Delhi.
The Charoen Pokphand Group (CP Group), a Thai conglomerate, has opened its first store in India. Located in Delhi, it is a 4,600 sq m cash and carry store operating under the banner of Lots Wholesale Solutions.
Lots Wholesale Solutions is targeting the traditional channel, local retailers and local suppliers and has announced its intention to break even within five years. It has also said that it will be looking to open two more stores in 2018 and another five in 2019. These stores will be located mainly in the Delhi area as it sets out to establish its presence there before venturing into other parts of India.
Operating as a members-only store, the store is focused on fresh food and groceries and also provides storage facilities and modern warehousing. The retailer has also indicated plans to launch an ecommerce platform for its members.
In Thailand, CP Group’s main retail operations is the 7-Eleven franchise, and it also operates the Makro cash and carry business. It also operates stores in China under the Lotus brand and has now turned its focus on the Indian market.
More information about the CP Group can be found here.
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Thai's CP may takeover E-Mart's remaining stores in China
Leading South Korean discounter, E-Mart, is in talks with Thailand's Charoen Pokphand Group to sale its five remaining stores in China.
In May, E-Mart announced that it was to shut operations in China by end of 2017. E-Mart China has struggled for profitability over the last few years, gradually scaling down its operations since 2011. Despite consolidation, the retailer still reported losses, most recently a net loss of KRW 21.6bn last year. E-Mart had ambitious growth plans for 1000 stores when they first opened in China, but this has failed to materialise, with the peak reaching 27 stores in 2010.
E-Mart's declining sales in China have been compounded by increasingly difficult relations between Seoul and Beijing over the deployment of the THAAD US missile-defence system in South Korea. Lotte, E-Mart's fellow-South Korean competitor, has also seen its sales plummet in China, with some outlets still temporarily closed after nearly four months.
The sale of E-Mart's remaining stores in China will help the company reduce losses in the market. August sales did rise 3.5 per cent to 1.2 trillion won from a year ago, but this is an indication of the volatile trading conditions in the current market, particularly impacting large-format stores. Negotiation for a deal is reportedly underway. Charoen Pokphand Group is one of the largest conglomerates in the world and currently operates discount chain CP Lotus in China.
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Modern Sevel Indonesia, which operates 7-Eleven convenience stores in Indonesia, cancels the sale of the chain due to "non-agreement of the parties concerned".
CP Indonesia is an affiliate of CP All, which operates more than 9,500 7-Eleven stores in Thailand. Its plan to buy 7-Eleven stores for US$75 million would have brought much needed funds and expertise for the struggling operator in Indonesia. The convenience channel in Indonesia is dominated by two local retailers Alfamart and Indomaret, with more than 13,000 stores each. Modern Sevel operated 175 stores as of September 2016.
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