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The fast-food giant Yum! Brands Inc said on Wednesday that it willopen KFC and Pizza Hut restaurants inside stores operated by one ofthe largest electrical appliance retailers in China. According to the agreement, Yum will open 150 restaurants in thenext five years in stores run by Suning Appliance Co Ltd. They willinclude KFC, Pizza Hut, Little Sheep and East Dawning brandrestaurants. "Yum highly values the cooperation with Suning," said Mark Chu,president and chief operating officer of Yum China Division. "Thecooperation can give full play for both parties on businessarrangement, chain store management, brand influence, as well asbetter meeting customers' needs." The companies said Yum has opened trial KFC and Pizza Hutrestaurants in Suning stores in 17 cities including Nanjing,Beijing, Shanghai, Shenyang and Dalian. Since Yum brought its first restaurant to the Chinese mainland - aKFC that opened in Beijing in 1987 - the US company has expandedquickly in the emerging market. It now has more than 5,000restaurants in the country and aims to open at least 600restaurants a year in the near future. "The new partnership lets Yum have access to prime store locationsacross the country through Suning's large business network," saidGong Bo, an industry analyst with Beijing United Innovation CapitalLtd. "At the same time, through the partnership, Suning will expand thetypes of business in its traditional stores as well as enrich itsbusiness formats." The Nanjing-based home appliance giant is aiming to open more than400 outlets this year and now has more than 1,700 stores at homeand abroad. Besides adding to its stock of traditional stores, Suning also hasplans to move into other sorts of business, such as online sales. "The value of sales in China's home appliance market will increaseto 3.1 trillion yuan ($475 billion) by 2020," said Zhang Jindong,Suning's chairman. "Suning intends to occupy about 20 percent of China's homeappliance market by then. For that time, our target for onlinesales is 300 billion yuan, while our target for online sales forthis year is 30 billion yuan," Zhang said. The site will sell daily necessities, clocks, musical instrumentsand other goods, besides electrical appliances, he added. "In the current situation for retail, this cooperation between thetwo retailing giants will lower the cost of opening stores and drumup more customers for both sides, which will lead to moreinnovation in the industry," said Yang Qingsong, deputysecretary-general of the China Chain Store and FranchiseAssociation. The e-commerce company in China offers quality products such as Neck Strap Lanyard Manufacturer , Custom Keychain Lanyard Manufacturer, and more. For more , please visit Neck Strap Lanyard today!
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