3C Product Chain_New Commerce_Core Industries

3C Product Chain

Hiteker

Founded in 1997, Jiangsu Hiteker Technology Co., Ltd. (Hiteker, 600122.SH) is the first Jiangsu-province based technology company to ever be listed on a stock exchange, and it is one of the companies holding the constituent stocks of SSE 380 Index, CSI POEs 200 and other major indices.

Hisap

Established in 2000, Hisap High Technology Corporation (Hisap) is a wholly-owned subsidary of Jiangsu Hiteker High-tech Co., Ltd. (Hiteker, stock code: 600122.SH). With PC as its gene, Hisap aims to leverage digial methods to build itself into China’s most valuable and engineers-operated novelty retail and service platform operated by engineers. Currently, Hisap’s retailing stores covering more than 200 cities in North, East, South, Central and Southwest China. And Hisap has nearly 10,000 employees and ranks among the top 20 in China’s Top 100 Retail Chain Businesses.

Following the consumption upgrade in China, more brands have shifted their focus to the younger generations. Given this situation, Hisap has injected many innovative, fashionable and dynamic elements into its brand to appeal to the diverisfied and personalized demands of the mass consumers. In 2015, Hisap introduced the product supply chain of the American novelty chain brand Brookstone and created a new channel-based brand “Hisap Brookstone”, transforming from a traditional 3C comsumer electronics retailer into a novelty brand business. It has since adopted the Retail 5.0 model of operation, which inlcudes the following levers: (1) a platform-based APP ecosystem; (2) standard display and layout; (3) specialized content operations; (4) service experince supported by engineers; (5) a global buyer supply chain; and (6) smart standards for product mix. On September 30, 2017, Hisap launched its first smart store with the Retail 5.0 model in Sanpower International Plaza in Nanjing.

The brandnew Retail 5.0 model will not only bring new opportunities for Hisap Brooktsone’s own development, but also enable it to lead the whole retail industry, delivering more surprising products and services to consumers.

Funtalk Telecommunications

Founded in 2003, Funtalk Telecommunications is a retailer of telecommunications, smart and novelty products with omni-channel sales and service network with the combination of online and brick-and-mortar stores. Funtalk’s retail network can be found in 26 provinces nationwide, with more than 2,000 retail stores. Funtalk Telecommunications has been on the list of China’s Top 100 Chain Retail Stores for many years. In 2013, Funtalk was awarded one of the first batch of virtual operator licenses issued by the Ministry of Industry and Information Technology of the People’s Republic of China and its virtual brand “More” has become one of the top 10 domestic virtual brands.

Funtalk upholds the principle that “the Core Competitive Edge of a Retailer = Supply Chain Capacity*Customer Service Capacity.” It has established cooperations with strategic partners such as China Mobile, China Unicom, China Telecom, Huawei, Apple, Xiao Mi, Brookstone US, Vivo, OPPO, Rongyao, to provide consumers with global highly cost-effective novelty products via one-stop service platforms. “More”, an app incubated by Funtalk, is currently China’s largest channel-based mobile health management platform. The digital system centering around “digitalization of customers, commodities, stores and employees” comprehensively enhances capacity of business operation and quality of service, and has become the most effective CRM customer service system among China’s domestic retail industry.

Funtalk’s continuous drive for innovation has won it consumers’ and the industry’s recognition as it has received multiple industry awards, including “Top 10 CCFA China Retail Innovative Business Models” and “Gold Award of 2017 Greater China Shop! Awards.

Brookstone

Brookstone, founded in 1965 in America, is the most specialized chain enterprise for novelty products worldwide. Currently, Brookstone offers all sorts of unique-design, and hard-to-find innovative products of multi functions and high quality via various sales channels such as catalogue mail order, telephone order and on-line sales; it also runs over 300 stores mainly distributed in luxury department stores, fashion home centres and the busiest airports across US and Puerto Rico.

After acquiring Brookstone in 2014, Sanpower Group made use of its own channels to help Brookstone to expand its market in China; at the same time, the transformation and upgrade of Hisap and Funtalk Telecommunications was promoted. Harnessing its own complete supply chain, Brookstone introduced the premium global novelty product brands to China, attracting consumers via scenario-based, experience-oriented and interactive stores, giving customers in China a brand new shopping experience. Currently, in collaboration with Hisap and Funtalk Telecommunications, Brookstone China has established over 200 stores, including flagship stores, boutiques and other stores in shopping centers and supermarkets, in the first and second tier cities such as Nanjing, Beijing, Shanghai, Suzhou, Hangzhou, Chengdu and Qingdao, facilitating the transformation and upgrading of 3C chain stores under Sanpower. In November 2017, Brookstone launched the “Easy+” global partnership program, and created the S2B2C franchising model featuring shared model+ partnership-based operation+ joint capitalization. It aims to form a kind of long-term and sustainable partnership model that generates multiple benefits, through integrating and sharing social resources and building platforms and ecosystems, so as to drive the innovative development of Brookstone China.