X5 opens representative office in Hong Kong
MOSCOW. Nov 7 (Interfax) - X5 Retail Group has opened its own trade representative office in Hong Kong.
"A permanent presence in Hong Kong, the business gateway to South-East Asia, will enable X5's procurement team to improve purchasing terms and build up the share of direct imports in a number of product categories, primarily fruit, vegetables, seafood and non-food goods," the retailer said in a statement.
The X5 office in Hong Kong is its first trade representative abroad. The company could open a trade representative in Central Asia and South America in the future.
Ramping up direct imports of goods that are not produced in Russia and seasonal products has been among X5's top priorities since 2016. In the 18 months after the launch of the direct import program, the total number of direct suppliers has reached 200. Direct imports already account for almost 50% of supplied fruit and berries.
In 2017, the number of countries where X5 has direct relationships with suppliers reached 27.
In 2017-2018 X5 is planning to establish direct imports from another six countries: Bosnia, Mexico, Namibia, Madagascar, New Zealand and Iran. The company is open to cooperation with producers from other countries looking to tap into the Russian market and is ready to offer favorable procurement terms.
"Direct engagement with foreign suppliers, bypassing distributors, will enhance the quality of X5's offering to customers, by enhancing its control over production standards and mitigating risks of supply shortages," X5 said in the statement.
X5, Russia's retail leader by sales volume, had 11,326 stores in operation as of the end of September, including 10,481 Pyaterochka stores, 584 Perekrestok supermarkets and 91 Karusel hypermarkets. Revenue rose 26.2% in 9M to 933.3 billion rubles.