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China's Lianhua Supermarket forms alliance with Japan's Izumiya.

HONG KONG, Nov. 4 Kyodo

China's largest supermarket chain operator Lianhua Supermarket Holdings Co. said Tuesday it has signed a deal with Japan's Izumiya Co. to sell each other's products and jointly develop goods under their brands.

Under the alliance agreement, the Shanghai-based Lianhua Supermarket will export more than 200 types of goods with sales revenue of 500 million yuan (US$60.5 million) to Izumiya, the eighth largest retail chain in Japan, by 2005.

In return, Lianhua Supermarket will introduce the same value of Izumiya's products at its retail outlets in China.

Lianhua Supermarket, which is listed in Hong Kong, has 2,214 retail outlets across China.

''This alliance fully utilizes the branding effect of both Lianhua Supermarket and Izumiya to achieve mutual benefits and growth,'' Lianhua Supermarket's Chairman Wang Zongnan said in a statement.

The two companies said they have also eyed cooperating in the areas of logistics and distribution, operations management, as well as information and human resources exchange.

''This is pivotal in enhancing our core advantages, competency and capability in the competition with international players,'' Wang said.
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Publication:Asian Economic News
Geographic Code:9HONG
Date:Nov 10, 2003
Words:181
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