"Bailian Group has worked out a draft for its future development - setting up Orient department store group, Wing On department store group, Lianhua chain store group, and a logistics company to serve the whole businesses," said an official with Shanghai Institute of Current Economic Research, who asked not to be identified.

Shanghai Bailian (Group) Co Ltd, whose annual sales total 70 billion yuan (US$8.43 billion), was formed by combining Shanghai Yibai (Group) Co Ltd, Shanghai Friendship Group Inc, Hualian (Group) Co Ltd and Shanghai Materials (Group) Corp in April.

Sources say Bailian will restructure its high-end department store business and put it under the Orient brand, while its middle-class department stores will be known as Wing On.

Shanghai Yibai (Group) Co Ltd set up a special department on May 28 to integrate the business of Bailian Group's more than 10 department stores.

Orient Shopping Center, the East Wing of Shanghai No 1 Department Store and Shanghai Nextage Department Store were the first three stores to come under the umbrella of "Orient," Tang Jianhua, who oversees the new department, said.

Tang said the department will spend a year to merge the three stores' marketing, procurement, management and corporate images. The department will then focus on brand building and business expansion. In the future, Shanghai Friendship Hongqiao will be added to the Orient group.

The Wing On group will cover the middle-level department stores led by Hualian Commercial Building on the Nanjing Road Pedestrian Mall.

"Hualian is seeking to recover its original name as Wing On. All the stores in this group will share the name," Tang noted.

Hualian community stores and the west wing of Shanghai No 1 Department Store will also be under the Wing On chain.

Lianhua Supermarket and Hualian Supermarket are expected to be merged under the Lianhua brand.

The existing distribution and shipment systems of Lianhua and Hualian supermarkets will merge with Shanghai Materials (Group) Corp to form a third-party logistics concern.

(Shanghai Daily June 9, 2003)