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Business Model Presentation Notes

Shop rent accounted for about 9. 8% (2013: 9. 7%) of the retail revenue. [3] Human Resources The Group’s procurement team comprised members who have worked in the coil business for years [3]. Many of the sourcing employees have in-depth knowledge in the procurement process because they have been working for the coil for years and years. Although retail business particular the snack business is new to the company, yet they were able to adjust and learn the tricks In sourcing for the retail shops. They had the skills In procurement to be able to adapt In any retail business.

Sourcing personals are located all around the worldl [1] Japan, Taiwan, Korea, India, Middle East, and China [3] Other support The coil business also provides packaging service for the retail shops. A lot of times 759 Stores would repackage the goods before putting them on shelf for sale. The reason is because they want to sell the products at a low price yet they cannot display the original package[l]. Therefore they would buy the product in bulk and then repackage them for sale at a lower price [3] It also produces shopping bags and isplay materials for the retail shops.

Key Actlvltles

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Product Importation from over countries and region- which included Japan, Taiwan, Korea and Europe. Majority of the inventory are from Japan [2] Goods are usually bought in large amount and shipped by cargo containers directly shipped to Hong Kong for distributed to all 759 shops [3] The CEO of 759 Stores encourages its sourcing team to constantly source for new products. His goal is to expand consumer choices [2] 759 does not sell brand name products- instead it imports goods that are popular in versea markets but lacks promotions in Hong Kong.

Promotions 759 Stores provide weekly promotions to its customers. Customers with 759 Store VIP cards save more than customers who do not have the VIP card. 759 usually have 3 different discount prices displayed [1]. member discount price customer discount price standard item discount prices Key partners The link Usually open shops in malls own by The Link or other areas that offer affordable rent A lot of shops are in malls, MTR stations or in residential areas [2] Oversea manufacturers 59 Store saves commission fees by importing directly from the manufactures.

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