|Sun Art Retail is a leading hypermarket operator in China. As of 31 December 2015, Sun Art Retail has maintained its market leadership through organic growth with 13.7% market share by retail sales value, according to Euromonitor. Sun Art Retail operates its hypermarket business under two recognized banners – “Auchan” (歐尚) and “RT-Mart” (大潤發). The e-commerce business platform of Sun Art Retail: www.feiniu.com (飛牛網) officially commenced operations on 16 January 2014 and achieved nationwide coverage in May 2015. www.fieldschina.com (甫田網) joined Sun Art Retail in April 2015 and acquired Xiaohehe www.xiaohehe.org (校呵呵), a mobile O2O platform targeting at university campuses in September 2015. In September 2015, the Group has set-up the vertical platform specialized in wines, Auchanwines www.auchanwines.com.
As of 31 December 2015, Sun Art Retail had a nationwide footprint of 409 hypermarket complexes across 28 provinces, autonomous regions and municipalities in China with a total gross floor area of approximately 11 million square meters. The two premium supermarkets operated by RT-Mart and Auchan under the brand names of “RH Lavia” and “Hi Auchan” are located in Changzhou City and Shanghai City respectively. At of 31 December 2015, Sun Art Retail secured 117 sites to open hypermarket complexes in the next 3 years, of which 77 were under construction.
Feiniu.com commenced its online to offline (“O2O”) program in March 2015 by leveraging the Group’s physical stores as dispatching points. Within two months, Feiniu.com achieved nationwide coverage through this O2O program. By the end of January 2016, Feiniu.com has over 11 million registered members, of which over 3 million are active users within half a year. For the month of December, sales through mobile app accounted for 78%. In June 2015, Feiniu Mall, marketplace platform of Feiniu was officially launched.
Leveraging the Group’s extensive network of physical stores, Feiniu.com explored Online to Offline (“O2O”) opportunities and commenced the distribution of fresh products in Shanghai at the end of 2014. It took advantage of the Group’s well-established sourcing channels to buy vegetables from direct procurement bases and imported fruits from overseas in large quantities. Thanks to the high inventory turnover of the fresh products and warehouses located in our physical stores, Feiniu can ensure the freshness of the products being delivered.
The Group purchased www.fieldschina.com (“Fields”) in April 2015, which will further enhance our development of the E-Commerce area, in particular to address the needs of customers looking for fresh products of high quality and food safety. Xiaohehe (www.xiaohehe.org), a mobile O2O platform targeting university campuses has been acquired in September 2015 so as to extend the Groups e-commerce platform. Leveraged on the Group’s sourcing strengths both overseas and in domestic China, a dedicated wine website www.auchanwines.com was launched in September 2015.