Scandic Foods Asia have developed a three-pronged approach in regards to our distribution in China. Our initial channel is premium retail stores such as Ole, BHG, G-super, Freshmart, Takashimaya, and IKEA etc., with about 500 stores with 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 from all over the country. By establishing a presence there, Scandic Foods Asia has established a solid reputation in the industry. We also service some important nationwide chains such as 7-Eleven and Carrefour.
Our second distribution channel is via distributors. We have developed over 100 active distributors covering at least 10,000 stores nationwide. These distributors services supermarket and hypermarkets out in the provinces and has relationships and resources to service these channels. We focus our business development resources to build and support this network.
Our third sales channel is through online. China has a well-established infrastructure for e-commerce and Scandic Foods Asia has a presence on all the major online sales platforms. We have stores on Tmall, Tmall international, Taobao, JD.com, Red, Douyin, Wechat etc., and our own multilingual web shop. In addition many distributors operate their own on-line stores with our support.
We estimate that on-line eventually will be over half of our business and we invest in supply chain and logistics systems to support that. Today we operate our own warehouse with pick and pack operation.
We are not targeting the 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.