Chinese fresh produce retailer raises $14m

Founded in 2011, the company operates 98 supermarkets, three convenience stores, and two canteen restaurants. The majority of its outlets are located in Xiamen, although an overseas expansion initiative has seen five stores open in Vancouver. It claims annual revenue of RMB1 billion.

Sungiven also runs a delivery service through its official WeChat account, dispatching consignments of fresh produce as well as prepared meals to consumers. 

While the fresh produce segment has attracted many start-ups, notably social-e-commerce platforms, Sungiven food differentiates itself by developing its own brands. The company has 2,000 in-house branded stock-keeping units, which account for 60% of sales. The goal is to follow the business model of US-based Whole Foods and Trader Joe's, which provide high-quality, affordable foods. Around 80% of Trader Joe's products are in-house brands.

Sungiven started out as a food exporter. CEO Qiming Chen said that the 20 years of experience in this area had embued the company with strong sourcing capabilities, due to the strict quality control and safety standards of certain overseas markets.

Sungiven will continue to open stores in North America to serve local Chinese communities. It also sources products from overseas to serve the domestic market.

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• Topics
• Greater China
• Consumer
• Expansion
• China
• Maison Capital