IN June, we visited seven operational department stores of Zhongmin Baihui Retail Group (ZMBH) in Xiamen and Quanzhou, two major cities of Fujian Province, China. All the stores are in prime locations, usually the intersections of arterial roads. The stores are easily accessible by public transportation and have strong shopper catchment in the neighbourhoods. We are impressed by the heavy shopper traffic in ZMBH's stabilised stores, particularly the very first self-owned one, Xiamen Wucun Store.
ZMBH achieved fast expansion since it was listed and has opened its 10th department store - Quanzhou Xinhua store, in April. The management envisions opening more stores in the following two to three years and strives to become a department store leader in Fujian province and beyond.
In this increasingly competitive retail market flooded by Chinese indigenous department store players such as Xinhuadu and Tianhong, as well as international supermarket giants like Walmart, Carrefour and Tesco, ZMBH is able to stand its ground in Fujian and even has yielded remarkable growth, thanks to its well established reputation over the past 16 years of local retail business. Walking in Zhongmin Baihui's self-owned supermarkets, one is reminded, by the cheaply priced and neatly shelved daily goods, of some supermarket chains in Singapore. The stabilised ZMBH department stores have already merged well into neighbouring residents' daily life.
We believe, by sticking to fair pricing and warranted service quality, ZMBH is solidly grounded in Fujian where it has a competitive edge as well as great potential for further expansion.
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