Titel presentatie[Naam, organisatienaam]

Summit Day – Scientist forum on Smart Specialisation related to clusters

Edward Y. M. ZhuCEO of CHIC Group, Co-chair of Holland Center

Creating Value through Innovation of World Food Port

Creating Value through Innovation of World Food Port

Edward Y. M. ZhuCEO of CHIC Group

Co-chair of Holland CenterEmail: edwardymzhu@chicgroup.com

Nov 9th, 2016 Eindhoven

1. CHIC Group & CHIC Foods Brief Introduction

2. World Food Port: Introduction

3. Current issues of economic development zones in China

4. The Vision

5. Value Proposition of the World Food Port

6. What is ideal: Jiangsu Case

7. Practical Implementation

Table of Contents

CHIC Group Brief Introduction

• Headquartered in Shanghai, China with a state-of-art R&D center and group training center on the campus

• With around 10,000 employees globally

• The group consists of six divisions: - Food- Agriculture- Home & garden Products- Medical Equipment- Integrated supply chain management

Solutions & Execution - BIRUP

• Four controlled joint venture – Fruit processing plants

• One Thailand wholly-owned – Coconut Water processing plant

• One controlled joint venture –Home & Garden Plant

• Multiple global & regional brands: INVO & Fruiti …

• Three Fruit Orchards in China

Canada

USA West Coast USA East Coast

Europe: France, Germany, UK, Switzerland

DubaiKoreaJapan

New ZealandAustralia

Thailand

SingaporePhilippines

China

CHIC Group at a Glance

CHIC GROUP IS A SIMIS COMPANY WITH VALUE ADDED DIFFERENTIATED PRODUCTS, SERVICES AND BUSINESS MODELS:

S: Solution I : InvestmentM: Management I : InnovationS: Service

We grow only when our people grow!

CHIC Group at a Glance

Pictures of CHIC Group Headquarters, R&D Center, and Knowledge Center of Excellence in Shanghai

CHIC Group at a Glance

1. CHIC Group & CHIC Foods Brief Introduction

2. World Food Port: Background

3. Current issues of economic development zones in China

4. The Vision

5. Value Proposition of the new World Food Port

6. What is ideal: Jiangsu Case

7. Practical Implementation

Table of Contents

Historically, China and The Netherlands have been important economic and trade partners. In 2014, the two Heads of states signed a Joint Declaration to establish a comprehensive and cooperative partnership. The declaration expressed the intention to intensify the cooperation in major areas such as modern Food & Agriculture

World Food Port: Background

World Food Port: Background

China’s “One Belt One Road” strategy brings great opportunities to the cooperation between China and The Netherlands. The World Food Port (WFP) is situated at the eastern starting point of “One Belt One Road”.

1. CHIC Group & CHIC Foods Brief Introduction

2. World Food Port: Background

3. Current issues of economic development zones in China

4. The Vision

5. Value Proposition of the new World Food Port

6. What is ideal: Jiangsu Case

7. Practical Implementation

Table of Contents

China Economic Development Zone: Current issues

Competition with no differentiation:

Zone to Zone

Low Efficiency: redundant shipping,

increased logistic cost, resulting in high total

supply chain costs

No Integration: lack of holistic approach

and design

High waste = Pollution

High transaction costs

1. CHIC Group & CHIC Foods Brief Introduction

2. World Food Port: Introduction

3. Current issues of economic development zones in China

4. The Vision

5. Value Proposition of the new World Food Port

6. What is ideal: Jiangsu Case

7. Practical Implementation

Table of Contents

Traditional Supply Chain

Traditional Food Hub

World Food Port

1. CHIC Group & CHIC Foods Brief Introduction

2. World Food Port: Introduction

3. Current issues of economic development zones in China

4. The Vision

5. Value Proposition of the World Food Port

6. What is ideal: Jiangsu Case

7. Practical Implementation

Table of Contents

Value Proposition of the World Food Port

Increased Revenue with World Food Port: one-stop shop of all food offerings to the markets

Reduced Cost of Goods:

Reduced Total Cost of Logistics

Reduced Total Cost of Material Handling: through assembly line and automation

Reduced Total Material cost (less wastage & spoilage)

Reduced Transaction Cost

Better Food Safety Control: more integrated farm-to-table supply chain with

Transparency & Traceability

Reduced CAPEX throughout the total supply chain: higher level of

Shared Resources & Assets such as a shared temperature controlled warehouse

Reduced Spoilage, less Wastage: less Touch Points in a flattened end-to-end

supply chain

Main driver: Food Technology of Fresh Offering

1. CHIC Group & CHIC Foods Brief Introduction

2. World Food Port: Introduction

3. Current issues of economic development zones in China

4. The Vision

5. Value Proposition of the new World Food Port

6. What is ideal: Jiangsu Case Study

7. Practical Implementation

Table of Contents

Jiangsu Case: What can be Ideal?

A Cluster-Based economy is a platform with a total supply chain in one location

strategically linking, on one hand, the under-utilized assets, and on the other hand, the

market demand. The World Food Port is a pull model, matching production with the

real time demands of the surrounding

cities such as Shanghai, Beijing,

Guangzhou, Shenzhen, Taipei,

Hong Kong and countries such as

South Korea and Japan.

Farming

Processing

Logistics

Eating & Consuming

Local Lifestyle & Living

Main drivers of the demand: The Millennials

“Agrarian urbanism applies to settlements where society is involved with food in all its aspects: organizing, growing, processing, distributing, cooking and eating” Andres Duany

Implementation in Practice

Golden Triangle for

Success Assurance

The Holland CenterCHIC GroupDomestic enterprises and entrepreneursEnterprises with industrial advantages in the field of food & agribusiness from the Netherlands

Wageningen University and its research centerOther cutting-edge research and development institutions within the circle

Governments of China and the NetherlandsLocal governments of Jiangsu

Implementation in Practice

Implementation in Practice

7. Implementation in Practice

Cold Storage

Tofu/Bean Curd Based

Others

*Coconut Water *Fruit Cups/Sorbet

Meat (cooked)

Fruit Juice (Customized)

BakeryDessert

Dairy Yogurt/Non

-dairy Yogurt

Cold Storage

Fish& Sea Food(cooked） Others

Fresh Flowers（ sorting）

Vegetables (cooked)

Salad-DressingSalsaDipping

Salad（ Raw）

Rice (cooked）

Noodle（ cooked）

Packaging:•Salad•Soup•Meal Box•Sandwich•Bakery

Cold Storage Freezers Assembly

Cold Storage

Cold Storage

Cold Storage

Cold Storage

Cold Storage

Cold Storage

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Central KitchenCHIC Fresh Technology

Cooking

Cooking

Cooking

Central Kitchen with Fresh Technology

Implementation in Practice

Implementation in Practice

– A platform to Support and Facilitate Dutch (and where relevant also to other European) Food & Agriculture companies

– To start and Speed up their business in China, and an easy "go-to place" for the consumers (B2C) and customers (B2B) in China

– With a shared brand with Dutch food & agriculture business reputation, members of Holland Center can have a synergistic approach to target markets in China

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Holland Center

Thank you!

Q&AEdward Y. M. Zhu

CEO of CHIC Group Co-chair of Holland Center

Tel: +86 21 6707 7888Email: edwardymzhu@chicgroup.com