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Retailing and Key Activities

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Retailing and Key Activities
CEC International Holdings Ltd
Background
CEC International Holdings Ltd is principally engaged in (i) the design, development, manufacture and sale of a wide range of coils, ferrite powder and other electronic components, which are generally used in the manufacture of various kinds of electronic and electrical products, (ii) operating retail stores of food and beverages in Hong Kong
(759Store), and (iii) investment property holding.
Established in July 2010, 759 STORE is the retail business of the Group that was set up with reference to the consumer culture of living areas in Japan. It mainly sells snacks, beverages, food and other packaged food imported from Japan and other regions of the world. In the year, 759 STORE gradually introduced characteristic domestic goods including kitchen supplies and household goods mainly from Japan.

1. Customer Segments
Mass Market
—

759 STORE aimed to give desirable service to vast local Hong Kong residents, providing a relaxing shopping environment with wide range of products for customers to choose . (1)

—

It mainly sells snacks, beverages and packaged food imported from Japan and other regions of the world.(1)

—

The site selection of 759 STORE goes deep into local residential areas. Most of the branches are located in shopping malls and shop units of public and private housing estates. (1)

Reference:
(1) Annual Report of 2012/13. http://www.0759.com/doc/art/announce/2013072801/default.htm 23/9/2013

759 STORE– Group 4

2

2. Value Propositions
—

Newness

◦ Continue to find the new products for the consumers
—

Unique
◦ Products which you can’t find from the supermarket

—

Accessibility
◦ More than 134 stores in HK. Also, consumers can get the updated promotion information from their official website

—

High Profit Margin
◦ Gross Profit with around 31.4% in 2013

—

Convenience
◦ Easy to locate the stores and buy products

—

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