Scandic Foods Asia have developed a three-pronged approach in regards to our distribution in China. Our initial channel when introducing a new product is premium retail stores and hypermarket with about 400 direct supply stores. These stores often have exclusively imported products and a nationwide coverage in all major cities. Prices in these stores are relatively high but volumes are limited.
These supermarkets are trend-setters and attract distributors and retailers from all over the country. By establishing a presence there, Scandic Foods Asia and its brands establish a solid reputation in the industry.
Our second channels are through our distributor network where we reach about 10,000 stores all over China through our over 100 regional distributors.
Our third sales channel is through e-commerce. China has a well-established and ever expanding infrastructure for e-commerce and Scandic Foods Asia has a presence on all the major online sales platforms. Our online team operate stores on several platform complemented by our own pick and pack operation. In addition many distributors operate their own on-line stores with our support. We aim to reach a 50%of our sales through e-commerce.
We are not targeting the over 200,000 local supermarkets, as local production is a basic requirement to be successful there. Our target customers are the roughly 100 million most wealthy Chinese consumers. This is one of the most exiting market segments developing in the world just now.