In the afternoon of June 3, Chairman Fu Yuning visited the headquarters of Vanguard, heard reports on Vanguard and attended a conference with the management team in the company of Deputy General Manager Chen Lang.

Heads of departments of Vanguard reported on the realization of the performance targets, initiatives to compete against e-commerce mode, the employment efficiency of the stores, the implementation of the CRM plan, the optimization of the supply chain and IT supports. They also commented on the market competition environment, the approach to integrate with the business of Tesco in China, the embedment of the advantageous technology of Tesco and the business integration opportunities.

Fu recognized Vanguard’s efforts of 15 years in developing its brand image standing for sound quality and reputation and the enterprising attitude of the young management team in identifying key issues and shortcomings and exploring solutions in the face of challenges.

Fu pointed out that after gaining a reasonable market share, Vanguard should build a sustainable drive for development through excellent operation. Vanguard should pay due attention to efficiency, details and process management, shift its business orientation to the customer and its operation focus from channels to commodities, enhance its operational foundations in the commodity management, supplier management, logistic service management and background IT support and improve the efficiency of scaled procurement. He encouraged the management to exert sustainable efforts in those aspects as “it is a healthy approach to sustainable development. In the implementation of the joint venture developed with Tesco, Vanguard should learn Tesco’s business logic and cultural philosophy, and apply its good practices and advantageous techniques in Vanguard's business, optimize the supply chain, promote the overall business quality and enable the project to generate direct economic benefits. In addition to the fierce competition of the retail industry, Fu pointed out, e-commerce has brought Vanguard both challenges and opportunities. When developing the new e-business, Vanguard must re-examine the changes in the market, customers and commodities from the perspective of the internet and business volume. Vanguard should exert its advantages in the off-line business deployment, including the well-organized suppliers and reasonable bargaining capacity with suppliers, in the development of the internet-based business mode.

During the conference, Fu also exchanged ideas with employees of CR Vanguard in a cordial atmosphere.