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With tremendous economic achievements made by China’s reform and opening-up, household consumption is in rapid transition from subsistence to quality. Emerging as the new consumption pillar is the middle class who believes in its own judgment, stresses on product quality and pursues more cost-effective products and services. Meanwhile, the post-90s generation has been growing into the new consumption force, as they are more easily attracted by new things amidst the accelerated iteration of digital technology and pursue personalized products and experiential consumption. According to the China Luxury Report from McKinsey, Chinese consumers at home and abroad spent RMB770 billion on luxury items in 2018, which accounted for a third of total global expenditure on luxuries and averaged nearly RMB80,000 for each luxury-consuming household. By 2025, such spending is expected to reach RMB1.2 trillion. Owing to the increasing brand awareness among consumers and the emerging consumer groups, outlets, famous for its strategy of “Big Brands, Reasonable Prices”, is embracing a period full of strategic development opportunities as it examines the upgrading and evolving consumer demands and promotes digital front-end contact, online operation of core business and digitalized operation. Outlets also integrated all channels to reach members and maintain positive and deep engagement with them, so as to deliver sustainable development of the outlets membership economy.

In the second half of 2019, the Group will proceed with its three development strategies, namely digitalization, experiential marketing and supply chain. We will strengthen the ability to reach and examine customers in digital approaches, upgrade our middle and rear platforms with digital and intelligent technologies, and improve the capability of closed-loop big data analysis. We will step up our efforts to create intellectual property (“IP”) out of our outlets projects and upgrade customer experience, and enhance the value of services at our stores and their distinctive characteristics with a view to increasing customer visits and revenue. Relying on its self-operated business, the Group will explore the omni- channel supply chain management of brands and hone its ability to deliver supply chain management services.

The Group will remain attentive to new changes in consumer markets. By centering on upgrading consumer experience and the value of brand owners, we will employ digital transformation to deliver more accurate marketing initiatives, more reasonable brand classification and more precise operational management and control. We will strive for a mutually beneficial development platform for enterprises, consumers and brand owners to achieve scale expansion and steady growth in operating results, and ultimately create maximum value for our shareholders.

Strategic Map of Capital Juda
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