House of Fraser, branch of Sanpower Group, intends to expand to the Middle East and Russia
Last month Sanpower, A leading retail company in China acquired the British department store group, House of Fraser. Sanpower is by far China's leading retail sector to foreign buyers offering the greatest deals. Yuan Yafei, the chief executive of Sanpower, said he is hoping to expand House of Fraser to the Middle East and Russia as well.
He stated that he will set up a flagship shop of “East Fraser” in Nanjing next year, four franchises in Russia and two in Abu Dhabi in the coming two or three years.
Sanpower Group, which business includes retail and real estate, has bought an 89% stake of House of Fraser and makes it a newest issue in Chinese enterprise to look for the latest global foothold outside China. Chinese retailers hope to set their goal on Non-Chinese customers as well as an increase in the number of Chinese outbound tourists.
Yuan Yafei said the acquisition will help Sanpower's response to the growing challenge of electricity providers and global supply chains around the world. Sanpower also owns a department store which has the longest history in China.
Yuan Yafei says: “House of Fraser has a department store management system, which is non-existant in Chinese department stores, especially in Procurement Systems, Brand Image, and European Supply Chain Management”. “This is essential for growth of Chinese retail companies and they are more than eager to learn”
Yuan Yafei, aged 49 has become one of the richest people starting as a local officer in Nanjing growing in a low-key manner. He doesn’t like to talk much about his success, but says that he is good at finding turning points in China’s market. He predicts China’s real estate market will begin to decline.
Yuan Yafei thinks that China has too many shopping malls which struggle to diversify; some of the shopping centers will go bankrupt in the next few years. He plans to use this to create change and diversify the business acordingly.
He added: “we are now acquiring House of Fraser; the reason is that we are preparing for the next three years and at that time, these shopping malls will go bankrupt”.
Author: Fred Ou
< More news