CP Group Sees Opportunities in China's WTO Membership

Strategic Insights -

Chairman Dhanin Chearavanont, of Thai conglomerate Charoen Pokphand (CP) Group, expressed confidence in the group's ability to navigate the changing market dynamics in China following its accession to the World Trade Organization (WTO). According to Dhanin, CP's familiarity with China's market, farmers, and general situation will provide a competitive edge over Western agribusiness companies.

Key Takeaways:

  • CP Group has invested a total of $1.2 billion in 170 companies in China, with at least 100 related to agribusiness.
  • The group plans to update its technology and employ more local talent to stay ahead of competitors in the agricultural market.
  • CP will abandon its investment in Lotus Superstores in Thailand and focus on expanding its retail chain in China.
  • The group plans to open four new Lotus stores in Shanghai next year, with all 12 stores operating within three years.
  • Each Lotus store requires a total investment of approximately 100 million yuan ($12 million) and has achieved an average daily sale of about one million yuan ($120,000).
  • CP's Super Brand Mall in Shanghai will be completed in August next year, with a total investment of $335 million.

Statistics:

  • $1.2 billion: Total investment by CP Group in Chinese companies.
  • 170: Number of companies in which CP Group has invested in China.
  • 100: Number of companies related to agribusiness.
  • 12: Number of Lotus operating licenses held by CP Group in China.
  • 120,000: Average daily sale of each Lotus store in Shanghai.
  • $12 million: Total investment required for each Lotus store in Shanghai.
  • 3 years: Timeframe for all 12 Lotus stores to be operational in Shanghai.
  • 335 million: Total investment in CP's Super Brand Mall in Shanghai.
  • 1 year: Planned timeframe for Lotus to open its next 4 stores in Shanghai.
  • 4: Number of new Lotus stores to be opened in Shanghai next year.
  • 6: Number of Carrefour stores operating in Shanghai.

Sources:

  • XINHUA NEWS AGENCY News Provided by COMTEX (http://www.comtexnews.com)