City Shop & German Products. Prepared by: Shanghai City Supermarket CO. LTD Prepared for: June 10th. 2015

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1 City Shop & German Products Prepared by: Shanghai City Supermarket CO. LTD Prepared for: June 10th. 2015

2 Overview 1. About us 2. Our experience

3 About Us City Shop One of high end supermarket chains based in Shanghai Retailer Importer Wholesaler

4 City Shop - Retailer - 13 shops in Shanghai high-end business and residential area, 2 shops in Beijing in Embassy Zone, high-end business area online shop: / English) - Over 10,000 kinds of imported groceries - Consumers include expatriates, high-income Chinese

5 City Shop - Importer Goods : dry, fresh and frozen products Brands :The most popular brands & Gourmet Products from various countries From the Countries: - Germany - France - USA - Italy - Switzerland - UK - Austria - Spain - Australia - Japan - Thailand, Singapore Import German Food Since suppliers, 555 foods and 70 non-food

6 German products in City Shop More..

7 Our experience of import and sell the German Products Cooperation - Import directly from Germany - Purchase from distributors in China Our Partner in Germany - Trading Company - Manufactures - Logistic Forwarder City Shop Professional team - Sourcing - Pricing - Document checking - Ordering and logistic arranging, by air by sea - marketing strategy - Continue ordering

8 Our experience of import and sell the German Products City Shop Professional team - Sourcing - traditional and popular domestic products, those are always available in supermarket chains; - New and fashion trendy products; - New partners, effective cost performance, - Pricing cost includes: CIF = product ex work or FOB + logistic ( freight & handling) + Insurance Duty + VAT Handling Charge in China ( custom clearance service, bond warehouse, Labeling, Hulage, ) Margin: whole sale 50% retail 50%

9 Our experience of import and sell the German Products City Shop Professional Team - Document checking - Request: All the Goods and Documents are in line with Chinese standard Category: GB7100 Biscuits, GB Candies, GB Chocolate, GB19640 Cereals, GB8537 Mineral Water, GB19298 Bottled Water, GB5420 Cheese, GB19302 Yogurt & Fermented Milk Generals: GB Food Additive Use Standard GB Food Nutrition Fortifier Use Standard GB The Labelling of Prepackaged Foods GB The Nutrition label of Prepackaged Foods GBT Organic Products Specific Products: Baby Formula, Dairy, Meat & Poultry, Fish & Seafood Manufacture Registered in CNCA Measures for the supervision and administration of Inspection and Quarantine of the import and export dairy products ( Meat & Poultry, Fish & Seafood)

10 Our experience of import and sell the German Products City Shop Professional Team - Document checking Sample 1: General Ingredients: vegetable fats(coconut, palm kernel), sugar, fat reduced cocoa powder, **whey** powder, candied orange peels 5%(orange, syrup of glucose of **wheat**, saccharose, acidity regulator: citric acid, preservative: **sulphur** **dioxide**), cocoa powder, emulsifier:**soya** lecithins, yes 1Is the saccharose referred to sugar? yes it is orange natural flavour. May contain almonds, hazelnuts, pistachio nuts and eggs.

11 Our experience of import and sell the German Products City Shop Professional Team - Document checking Sample 1: General Ingredients: vegetable fats(coconut, palm kernel), sugar, fat 1The Marc of Champagne is a reduced cocoa powder, **whey** powder, Marc of compound ingredient. Could you It is an alcohol which Champagne 5%, cocoa powder, emulsifier:**soya** lecithins. yes please describe the composition of comes from May contain almonds, hazelnuts, pistachio nuts, eggs and the Marc of Champagne Champagne gluten. specifically? It is a drop of raspberry it is a mixture of differents ingredients listed in green Ingredients: vegetable fats(coconut, palm kernel), sugar, fat reduced cocoa powder, **whey** powder, raspberry nuggets 5%(raspberry puree, sugar, apple, pinapple fibers, gelling agent: sodium alginate, stabilizer: calcium phosphates, colouring agents: anthocyan, curcumin, flavours, acidity regulator: citriq acid), cocoa powder, emulsifier:**soya** lecithins, natural flavour. May contain almonds, hazelnuts, pistachio nuts, eggs and gluten. no 1Raspberry nuggets is a kind of "preserved fruits", calcium phosphates and curcumin can not be added into preserved fruit.2the anthocyan can not be added into any food directly as a colouring agent currently. Could you please describe the specific type of the anthocyan or the source of it? in the ingredients list. Concerning the ingredients which do not comply chinese standards, we are not aware so we can only rely on you. For the description of the anthocyan, unfortunately this is confidential and we cannot give it to you.

12 Our experience of import and sell the German Products City Shop Professional Team - Document checking Sample 1: General Hygienic standard for products GB Chocolate and Chocolate Products Pollutant: Ref GB2762 Pathogenic Bacteria: Ref GB29921 GB2762 Content of Chocolate Lead (PB) 0.5mg/kg, Total arsenic (AS) 0.5mg/kg GB29921 Content of Chocolate Salmonella -

13 Our experience of import and sell the German Products City Shop Professional Team - Document checking Sample 2: Specific

14 Our experience of import and sell the German Products City Shop Professional Team - Document checking Sample 2: Specific

15 Our experience of import and sell the German Products City Shop Professional Team - Document checking Sample 2: Specific

16 Our experience of import and sell the German Products City Shop Professional team - Ordering and logistic arranging, by air by sea products, quantity, quality, shelf life, contracted - marketing strategy Promotion - Continue ordering or discontinue

17 Our experience of import and sell the German Products - marketing strategy Promotion Extend the customer group More and more Chinese like German products, because of the taste, Quality, and life style

18 Our experience of import and sell the German Products Customer changes: Expatriates Expatriates + Chinese Chinese favorite imported foods: Milk, Meat, Fresh Produce Beer, Soft Drinks, Wine with good price performance Sweets & Nuts, Cheese, Cereals

19 New Platform to sell import foods Cross-Border E-commerce Direct Selling from Origin Customer purchase foreign products online - Direct mailing from origin deliver to customer directly by international courier - Free Trade Zone products stored in Free Trade Zone warehouse deliver to customer directly by domestic courier Products Standard - Based on regulation in Origin

20 New Platform to sell import foods City Shop will open! Cross-Border E-commerce Comedus Shanghai Trading Co. Ltd - invested by City Shop - Registered in China ( Shanghai ) Pilot Free Trade Zone sqm warehouse ( Dry, Chill, Frozen ) - 14 Temperature controlled transport vehicles - Professional team - Provide logistic service for imported foods Searching Partners - Direct mailing from origin - Free trade zone

21 City Shop target on German products Upgrade the product level find new products for Cross Border e-commerce Baby products Bio products Fine & Fancy Foods German Specialities Lower the products cost Looking forward to working with new partner!

22 Thank you! Contacts Sherry XIE

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