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October 11, 2006
FamilyMart Sets Up Joint Venture in Guangzhou
To develop its business in the southern Chinese city of Guangzhou, FamilyMart has set up a joint-venture company in Guangzhou together with Ting Chuan (Cayman Islands) Holding Corp. (the holding company of the Ting Xin Group), Taiwan FamilyMart Co., Ltd., and ITOCHU Corporation. Approval of the registration of the new company, which will operate under the name of Guangzhou FamilyMart Co., Ltd., was received from the authorities on September 29, 2006.
The first store to be operated by the new company is scheduled to be opened for business on a limited basis within this month (October). The store will be opened for business on a full-scale basis in November following the official opening ceremony to be held on November 14. Current plans call for the new company to open 100 stores within the first three years, with the pace of store openings accelerating after that trial period is over.
In 2004, FamilyMart became the first Japan-based convenience store operator to open an outlet in China, with the opening of a store in Shanghai under the same type of joint-venture scheme as is being utilized in Guangzhou. As of the end of August 2006, FamilyMart had 104 stores in the Shanghai area. The Company intends to fully utilize the management experience gained from the operation of its convenience store chain in Shanghai, together with the input of management resources and extensive know-how possessed by its partners in this venture, to realize a successful convenience store chain in Guangzhou. The management of FamilyMart is convinced that its range of merchandise and services, carefully chosen to suit the tastes of the people of Guangzhou, combined with the superior level of hospitality for which FamilyMart is renowned, will succeed in gaining the approval of consumers in Guangzhou and in building up a strong base of loyal customers.
The economy of Guangzhou and its vicinity is developing with an extremely powerful momentum, even by Chinese standards, and in the run-up to the city's hosting of the 2010 Asian Games the local economy's growth is projected to gather pace still further. It was against the background of these factors that FamilyMart chose Guangzhou as the site of its second store chain venture within China.
The various partners in this venture will all bring their own unique strengths to the mix.
- FamilyMart itself is a convenience store chain operator originating in Japan which has succeeded in establishing an unparalleled reputation for its hospitality-focused service, and has built up its brand power on the international stage.
- ITOCHU Corporation possesses a highly effective supply chain infrastructure within China.
- Taiwan FamilyMart Co., Ltd. boasts unmatched convenience store chain management know-how in Chinese-speaking markets; and
- The Ting Xin Group is China's largest comprehensive food processing enterprise.
FamilyMart aims to maximally leverage the resultant synergies from this combination of differing strengths to create and develop a convenience store chain offering products and services finely tailored to the particular needs and preferences of its target customers in the Guangzhou area.
Outline of New Company:
Name: Guangzhou FamilyMart Co., Ltd.
Location: Guangzhou City
Representative: WEI YIN-HENG
Breakdown of Equity Stakes
Ting Chuan (Cayman Islands) Holding Corp.: 50.5%
FamilyMart China Holding Co., Ltd. (FMCH): 49.5%
Breakdown of FMCH:
FamilyMart Co., Ltd. - 38%
Taiwan FamilyMart Co., Ltd. - 37%
ITOCHU Corporation - 25%
Line of business: Operation of convenience store chain in the city of Guangzhou, Guangdong Province, the Democratic People's Republic of China
Stores operated by the FamilyMart Group (as of August 31, 2006) | Name (Operating Area) | Stores |
| FamilyMart Co., Ltd. | 6,412 |
| Okinawa FamilyMart Co., Ltd. (Okinawa) | 182 |
| Minami Kyushu FamilyMart Co., Ltd. (Miyazaki & Kagoshima) | 266 |
| Hokkaido FamilyMart Co., Ltd. (Hokkaido) | 10 |
| Subtotal for stores in Japan | 6,870 |
| Taiwan | 1,972 |
| South Korea | 3,394 |
| Thailand | 535 |
| China | 104 |
| United States of America | 6 |
| Subtotal for stores outside Japan | 6,011 |
| Total | 12,881 |
