After the introduction of CITIC Industrial Fund, the largest wine chain operation enterprise in China, Vats Liquor Chain Store Management Co., Ltd. (hereinafter referred to as Vats Liquor Store) has got investment funds from New Horizon and KKR, which means that the strategic invest attraction of Vats Liquor Store has come to an end successfully.
The strategic investment attraction of Vats Liquor Store lasted for one year. CITIC industrial fund is the first investment that Vats Liquor Store got. After the introduction of CITIC industrial fund, KKR and New Horizon have also become shareholders of Vats Liquor Store. However, “the expansion of Vats Liquor Store has just begun”, a person familiar with this deal said.
With the help of the received fund, Vats Liquor Store will accelerate opining more shops. In addition, they will also increase input in the development of products, bringing in talented people, improve their service and the overall informatization systems of this company.
Chairman of the board of Vats Liquor Store, Wu Xiangdong announced, “three famous institutions would like to invest their money into Vats Liquor Store just because they think highly of the development space of Vats Liquor Store’s real wines guarantee mode in this industry.”
When being interviewed by China Business News, Wu Xiangdong admits that Vats Liquor Store is still in need of “large amount of capital”. Such a channel has already existed in Home Appliances industry and is popular at the market, but there is essential difference between Home Appliances Chains and Wines Chains. In the Home Appliances industry, it is permitted to purchase merchandise prior to payment, but you have to pay cash when you buy wines. As the number of shops and wines in stock increase, more and more capital will be occupied in Vats Liquor Store.
According to the previous plan of Vats Liquor Store, more than 1000 shops will be opened in the coming 5 years. As for the supply of wines, all famous wines from China and the whole world will be incorporated into the sales system. At present, Vats Liquor Store has about 300 shops all around China.
When being interviewed by our newspaper, Wu Xiangdong said: “Vats Liquor Store will be listed at the right time when all conditions are ready.”