we WHEN YOU 你 也就是我们 WIN 成功 PREFACE The fast-growing China market has become one of the focus markets for METRO Cash & Carry and METRO GROUP. Since entering China in 1996, METRO has built up a differentiated business model which develops dynamically. Constantly evolving in line with our customers’ needs keeps us ahead of the market. More than four million buying professional customers have chosen METRO China as their trusted partner. Meanwhile, our efforts in ensuring quality, food safety and traceability, have won broad recognition. We are proud that METRO has been chosen as the major supplier for many large international events in China, such as 2008 Beijing Olympics, 2010 Shanghai World Expo, 2012 Artistic Gymnastics World Championships, 2012 China National University Games, and 2014 CICA Shanghai. METRO will continue to invest heavily in expanding and upgrading its sales network and services in China. At the same time, we are determined to become a multi-channel expert in the focused areas to better serve our professional customers such as hotels, restaurants, caterers as well as small traders and institutions. With an aim of being the “Champion for Independent Business”, we know that we can ultimately only sustainably grow our sales and earnings if our customers are successful. We win when our customers win! Jeroen de Groot President of METRO China >3 PROFESSIONALS & METRO METRO C&C has expanded its footprint to 26 countries, with over 750 stores globally. METRO not only provides high quality products, but also professional solutions and attentive services to help more independent businesses grow and achieve success. In China, more than four million buying professional customers choose METRO as their trusted partner. >4 Professional Solutions & METRO METRO introduced a new trading format into the traditional wholesale business and was the first in the world to adopt the Cash-and-Carry business model. METRO is not a retailer, but a full-service, quality solutions provider, helping independent businesses progress and attain the success they desire. In this constantly evolving market, whether you are a hotel manager, convenience shop owner or procurement officer, METRO offers the most professional solutions to meet your specific needs. >5 Did you know? • In China, METRO offers one-stop solutions and innovative value-added services to 220,000 hotels, restaurants, canteens and food-service companies; • Helps more than 133,000 groceries, small scale supermarkets and convenience stores achieve revenue growth; • Provides support to over 3.75 million enterprise customers, satisfying staff benefit and daily operational requirements; • Satisfies the needs of individual consumers who are keen on quality of life and food safety. >6 Comprehensive Assortment & METRO METRO is able to meet all of your personal and professional purchasing requirements with approximately 25,000 different types of products from fruits and vegetables to office supplies, home appliances, fabrics and automobile accessories. METRO takes care of almost all operational, office and conference needs of our professional customers. From items as small as tissue paper and snacks to articles as large as bedding, each product could entail as many as four to five different packaging specifications in order to fully satisfy the different needs of our customers. >7 Did you know? Enjoy now! METRO Own Brands Armed with in-depth knowledge of the nature of our customers’ businesses, METRO has proudly launched six own brands, tailored specifically to meet the needs of our different target groups. With over 3,000 available products, customers can enjoy high quality at truly reasonable prices. >8 aka Developed as a basic, entry price brand for our trade customers, aka comprises approximately 400 food and 200 non-food products; FINE FOOD Specially designed for convenience stores, groceries, service stations and independent food stores, FINE FOOD offers high quality products, appealing packaging and competitive pricing; HORECA Select Tailor-made for food-service companies, HORECA Select comprises a comprehensive range of food and non-food items to meet all the needs of a professional kitchen; H-LINE Comprises everything from bed and bath to tissue paper and candles for housekeeping, buffet sets, cutlery and restaurant equipment. This diverse range of non-food products is the perfect solution for hotels and food-service companies; RIOBA Offers an all-in-one solution for bars, cafes and hotels by supplying coffee, beverage, cocktail mixers, glasses, napkins and other bartending products; SIGMA Covers all office supply needs including stationery, paper and desktop equipments. >9 Competitive Pricing & METRO METRO sources from the top of the supply chain to ensure competitive prices. On a weekly basis, METRO conducts price comparison audits with other wholesalers, adjusting the prices of hundreds of products in order to maintain real-time competitive pricing. Furthermore, METRO provides the pricing scheme of “Buy More Pay Less”, especially for bulk purchase customers. Unique Convenience & METRO At METRO stores, stocks of our core product range are examined more than twice every day to ensure availability and display effectiveness. Promotion items are also checked to ensure stocks available to meet demand. Every METRO store uses the same layout, along with prominent and clear labeling to ensure that customers find the products they need easily, even at a newly opened METRO store. Sustained Innovation & METRO Our delivery service has been developed in line with Chinese customers’ purchasing habits. The delivery service of METRO consists of distribution centre delivery, platform delivery, out-of-store delivery, express delivery and food service delivery. The food service delivery is specially designed for hotels, restaurants, catering and other food-service customers to ensure high-quality products, competitive prices and convenience services in forwarding and food processing. The “METRO Kitchen” and the “Inspiration Corner” are training and sharing platforms set up specifically for our hotel, restaurant and catering customers. It conducts training sessions for over 40,000 people on safeguarding food freshness, culinary excellence and other professional food-service skills by on-site product demonstrations. As a result, METRO successfully brought the world-leading food management and culinary skills into the Chinese food services industry. > 10 Professional Staff & METRO METRO believes that a professional service does not stop at providing high-quality products. With the in-depth product knowledge, our store experts will help customers make the right choice for the right product at the best price. In-store sales staff resemble a one-on-one purchase guide, assisting customers with menu design, recommending new products and solutions, while making the purchase experience much easier and more convenient for our customers. > 11 FOOD & METRO METRO is committed to ensuring food safety along the entire value chain. The key is to work hand-in-hand with our partners, such as farmers, packaging companies, logistics service providers, authorities and professional customers to ensure maximum safety. METRO takes responsibility in leading the industry where quality and safety issues are paramount, while addressing every level of details with innovation. > 12 Star Farm & METRO In 2007 METRO established China’s first agricultural consulting firm, Star Farm. A traceability system was developed to record information “from farm to market” to reduce food safety risk, save management costs, and also enhance the reputation of METRO in terms of food quality and safety. While helping farmers increase productivity and efficiency, METRO was able to ensure maximum quality and safety from the source. To date, METRO has trained more than 350 enterprises and farmer cooperatives, approximately 12,000 food-processing staff and assessed 2,200 farming sites. Over 20,000 farmers have received professional training, nearly 3,000 traceable products were developed, and more than 3.5 billion RMB of total sales revenue has been achieved. > 13 Did you know? METRO’s traceability system: food product has its own unique ID Whether it is a box of apples or a bag of chicken wings, would you like to know where these products originate from? Simply check the traceability barcode on the packaging and you can find the “history” of the product through the related websites or smart phones. The traceability system will provide information including the name of the farmer, address of the food processing plant and the delivery methods. WE STRICTLY SELECT THE BEST FARMERS AS OUR BUSINESS PARTNERS. WE TRAIN OUR FARMERS TO USE GOOD AGRICULTURAL PRACTICES. WE TRAIN OUR FARMERS TO OPTIMIZE THE USE OF PESTICIDES, AND WORK IN A SYSTEMATIC WAY. WE CAREFULLY MONITOR THE WHOLE SUPPLY CHAIN “FROM FARM TO MARKET”. WE PROVIDE TRACEABLE SAFE HIGH QUALITY PRODUCTS. > 14 Cold Chain & METRO At METRO China, there is a ‘seamless’ cold chain covering the entire food supply process to guarantee food freshness every step of the way. From fully-automated temperature control systems, pre-cooling for goods loading and receiving to multi-temperature delivery vehicles, various measures have been put in place to ensure food continually stays fresh and safe. To increase customer satisfaction, METRO China collaborated with P&G, Unilever, CocaCola and other suppliers to analyse potential issues and provide solutions in order processing, warehousing and stock flow. This successful case study received the Gold Award for Efficient Consumer Response (ECR) China, demonstrating “best-in-class” supply chain management. > 15 HACCP & METRO All of the METRO stores in China have been operating in accordance with the HACCP system (Hazard Analysis and Critical Control Points), from loading, processing and storage right up to the shelves, to ensure the food that arrives on your table is absolutely safe. At METRO, a strict color-coded system is applied to everything in the operating area, from workstations to operational tools and uniforms. Red represents meat, green for fruit and vegetables, blue for marine and yellow for dairy products. This system prevents the cross-contamination of food. Did you know? • All of METRO stores in China are HACCP certified to guarantee the highest level of food safety; • Every METRO store is staffed with a HACCP expert; • Our archives contain 55,000 various product certifications; • In the shortlisting of suppliers and products, 3,000 types of food safety standards, 1,900 types of country-specific safety standards and 1,100 types of regional safety standards were adhered to; • 4,000 product tests are conducted a year; • 150 supplier training-sessions are conducted yearly, along with 1,200 food safety audits; • We implement HACCP training for our hotel, restaurant and catering customers in order to raise the food safety awareness levels of consumers. > 16 SOCIETY & METRO METRO China is committed to contributing to the sustainable development of China as well as fostering a harmonious society. METRO is here in China to do business for the long-term, and will grow the company and further develop responsibly by balancing economic interests with environmental and social aspects. > 17 Progress & M ETRO With its unique business-to-business concept, METRO connects the local producers to the market and offers a reliable one-stop purchasing channel. This business model is instrumental in stimulating domestic consumption levels and METRO’s transparent tax invoicing system effectively prevents under-table transactions. METRO creates access for Chinese enterprises to its network in 26 countries around the world, helping them to increase their profit margins. > 18 Community & METRO METRO actively contributes to local communities and encourages staff to participate in community services. From 2010 to 2011, METRO collaborated with NGOs to roll out the “Safe Food, Gelivable Growth” children’s food safety education program. Since the spring festival of 2012, METRO together with “Rice Mummy”, has operated the “Love Box” project. To date, contributions covering 60 cities in China have totaled around 1.6 million RMB. In September 2013, The ‘Food Bank’ project was launched in the METRO Shanghai Putuo store. Operations have been running smoothly, with donations amounting to approximately 1.5 million RMB. This project has been rolled out in Shanghai, Beijing and Guangzhou, will eventually expand to other METRO stores nationwide. From November to December 2013, Founding partner METRO together with the China Foundation for Poverty Alleviation jointly organised the “Charity Moving 100·METRO Happiness Charity Month”. As a result, 780,000 RMB were raised within two months. > 19 When Natural Disasters Strike, METRO Is Always At The Frontline Of Rescue Efforts In 2008, METRO employees united with donations and rescue tents for those affected by the Wenchuan earthquake, and supported restoration efforts at the affected areas. The METRO store in Chengdu also initiated a staff and family blood donation drive. In 2010, METRO China donated 100,000 bottles of pure water to the Yunnan drought area that were delivered by Kunming Beichen Store employees to help alleviate the water shortage. In May 2012, The METRO Kunming Beichen Store along with the Kunming Municipal Civil Affairs Bureau supported rescue efforts at the most serious drought areas in six villages in Yunnan’s Kunming Dongchuan district and Xishan district. Rescue packages were donated to 3,000 households affected by the drought. In September 2012, METRO China donated urgently required essentials and food items to the border of Yunnan and Guizhou to alleviate food shortages and poor living conditions in disaster areas as a result of a 5.7 Richter scale earthquake. In 2013, When a 7.0 Richter scale earthquake struck the city of Ya’an in Sichuan province, METRO China immediately put together a special resourcing team to gather large quantities of drinking water, food supplies and other rescue items. The METRO Chengdu Qingyang Store, together with the Sichuan Province Investment Promotion Board, delivered the rescue packages to the disaster areas to alleviate hardships due to the shortage of living supplies, drinking water and food. In August 2014, METRO China, in cooperation with the Emergency Management Center of Yunnan Ludian County Civil Affairs Bureau, provided more than 40,000 bowls of instant noodles, water and other food to the victims of Yunnan Ludian, where a 6.5 Richter scale earthquake had struck. > 20 Sustainability & METRO METRO’s main responsibility as one of the largest food traders in the world is to ensure a safe and sustainable food supply for future generations. Beginning at the farm base, METRO tests water and soil quality, adopts sustainable production and processing methods - like the right use of fertilizers or pesticides and proper irrigation methods - and ensures a minimum of packaging material is used. With innovative packaging solutions, like vacuum packaging and an unbroken cold chain, METRO reduces wastage to a minimum. Centralised distribution platforms contribute to reducing the frequency of vehicle usage and transportation routes are optimised by achieving the three “minimum rule” in supply chain management: minimum time, minimum resources and minimum carbon emissions. A sophisticated ordering system and proper storage facilities ensure only a minimum of food is wasted. > 21 Did you know? At METRO, not only vegetables are green In 2009, METRO opened its first energy-saving store in Wuxi Huishan. During construction, state-of-the-art equipment using the newest technology – such as heat recovery, wastewater recycling, and energy-saving lights and refrigeration – was brought in to control the overall energy usage at the new store. To save energy, refrigerators and freezers at METRO China stores are installed with sliding glass doors, and eco-friendly light bulbs are used and sold nationwide. With these light bulbs, METRO helped reduce energy usage by 30% and saved 52 RMB per light bulb annually. In 2014, METRO opened its first store implementing carbon dioxide refrigeration technology in Weifang. Carbon dioxide is considered safer than other refrigerants, as it does not deplete ozone and yields much lower greenhouse gas emissions. Compared with traditional methods, this efficient refrigeration technology can reduce energy consumption by as much as 20 percent, lowering operational costs. In addition, METRO China launched an Energy Awareness Program to track the energy consumption of METRO China's stores and headquarters, using the data collected to set attainable energy-saving goals. > 22 麦德龙商场在中国的布局 METRO China Store Map CHINA & METRO In 1996, METRO Cash & Carry, the international leader in self-service wholesale, opened its first wholesale store in the international Shanghai, China. Now, METRO China has over 80 stores in nearly 60 cities, with more than 12,000 employees and over 4 million buying professional customers. Armed with confidence in the Chinese market and a long-term growth strategy, METRO will continue to invest and expand its footprint in China. As a sales division of METRO GROUP, METRO Cash & Carry is one of the largest wholesale and trading firms in the world. It is represented in 26 countries around the world with over 750 self-service wholesale stores and over 110,000 employees. METRO GROUP has a footprint in 30 countries globally and has a headcount of around 250,000 employees across around 2,200 stores. Key Partner for Major International and National Events in China 2008 2010 2010 2012 Beijing Olympics Shanghai World Expo Guangzhou Asian Games Asian Gymnastics World Championships Formula One (Shanghai circuit) 2012 National University Games of China 2013 Asian Youth Games 2014 CICA Shanghai > 23 Our Brand Positioning : Champion For Independent Business METRO’s Brand Promises: • We continuously seek to understand your needs • We build trusted and personal relationships • We inspire with expertise and unique solutions • We go the extra mile to make it happen • We win when you win > 24 1964 The first METRO self-service wholesale store opens in Mülheim/Ruhr, Germany. 1968-1994 Out of Germany, METRO Cash & Carry progressively opens over 100 stores in Holland, Belgium, Spain and other countries in Europe. 1996 METRO Cash & Carry is one of the first international wholesalers to enter the Chinese market. It expands further in Asia in the new millennium, with new stores opening in Japan, India and Vietnam. 2004 METRO Cash & Carry becomes the world’s leading wholesale company, with more than 500 stores in 27 countries globally. In the same year, the headquarters building is completed in Shanghai Putuo district. 2007 METRO becomes China’s first HACCP-certified wholesaler, establishing and solidifying its leadership position in food safety and quality management. In the same year, METRO sets up Star Farm to help raise quality and safety standards of local farm produce and food processing industries. 2009 METRO introduces delivery service in Germany. In the same year, METRO Cash & Carry launches six own brands focusing on key target groups. 2012 With annual sales of €31.6 billion and 743 locations in 29 countries, METRO Cash & Carry is the leading international player in self-service wholesale. With 12 new openings in one year in China, a new record was created for the company. 2013 750 th The METRO Cash & Carry store is opened in China. With annual sales of more than €2 billion, the delivery service is one of our most successful sales concepts. 2014 METRO Cash & Carry celebrates its 50 th anniversary with employees, customers and suppliers worldwide, and renews its commitment of being a “Champion for Independent Business”. METRO China 1425, Zhenbei Road Shanghai, P.R.China Post Code: 200333 Tel: +86 21 2207 8888 Fax: +86 21 2207 6602 Website: www.metro.cn Shop with us: www.metromall.cn Imprint Publisher: Corporate Communications, METRO China Editor-in-chief: Albert Cao Planning Editor: Tanya Ma Design: Beacon (Shanghai) Advertising Co.Ltd. Status: May, 2015