Jinan released a slew of measures to support the opening of flagship stores and chain operation enterprises and facilitate development into a national consumption hub.

By 2022, the number of chain operation enterprises headquartered in Jinan will exceed 200 and the number of chain convenience stores will number more than 1,500.

I. Support first stores of commercial brands

1. Accelerate the construction of the first store of famous commercial brands

For international brand enterprises that open flagship stores in Jinan as their first store in Asia, the Chinese mainland, Shandong, or Jinan, if the annual rent or construction costs of the first comprehensive supermarket store exceed 10 million yuan ($1.57 million), the local government will provide a subsidy of 30 percent of the total actual investment, up to 3 million yuan.

If the annual rent or construction and installation cost of the first brand store exceeds one million yuan, 20 percent of the total actual investment will be given and the maximum subsidy is 200,000 yuan.

For local branded enterprises that open stores in Jinan as their first flagship stores in the Chinese mainland, Shandong, or Jinan, if the annual rent or construction and installation cost of the first comprehensive supermarket store exceeds 10 million yuan, 15 percent of the total actual investment will be granted and the maximum subsidy is 1.5 million yuan. If the annual rent or construction and installation cost of the first brand store exceeds one million yuan, 10 percent of the total actual investment will be granted and the maximum subsidy is 100,000 yuan.

For commercial complex and block operation agencies that introduce the first store of commercial brands and sign contracts for more than three years, if the first flagship store is of international brand, a 100,000 yuan subsidy will be granted and if the first flagship store is of a local brand, 50,000 yuan subsidy will be granted.

For first-store brand enterprises or authorized agents that set up regional headquarters, comprehensive or regional headquarters, and functional headquarters of multinational companies in Jinan, if they are qualified, a subsidy will be granted.

2. Set up platforms to help first store select a site. Encourage large-scale high-end commercial comprehensive service facilities and high-end commercial buildings to introduce the first stores of various brands. Encourage the use of the exterior facade of landmark buildings and mobile TV screens in buses and subways to promote the first store.

3) Improve services to provide a well-developed environment for first stores. Open a "green channel" and implement a consultation system for the planning, construction, customs clearance, fire control, quality inspection, food operation, and other approval matters related to the opening of the first store. Explore pilot systems for pre-classification, pre-adjudication, pre-testing of new products and acceptance of import inspection results to speed up customs clearance of new products. Strengthen the trademark protection of the first new products, and the qualified brand of the first new products will be included in the "Jinan key trademark protection list".

II. Support chain operation

1. Encourage the introduction of large-scale renowned chain enterprises

Encourage the introduction of international chain headquarters or regional headquarters. Help multinational chain enterprises, China's top 100 chain enterprises and other large well-known chain enterprises set up headquarters or regional headquarters in Jinan. For the newly introduced chain enterprise headquarters or regional headquarters, from the introduction of the year, if annual sales reach 1 billion yuan or 5 billion yuan within three years, 1 million yuan or 3 million yuan in subsidies will be granted respectively.

Subsidies will be granted to chain enterprises for house purchases or rentals. For newly settled chain enterprise headquarters that need to buy or rent a house as their office, if they purchase property within three years, 3 percent of the purchase contract amount can be granted as a subsidy and the maximum amount is two million yuan. If they rent a house for at least three years, 20 yuan per square meter per month will be granted as a subsidy for the first two years and the maximum subsidy is 480,000 yuan per year.

2. Support the development of existing chain enterprises

Help chain enterprises expand in scale. Retail chain enterprises whose annual sales exceed 1 billion yuan, 5 billion yuan, and 10 billion yuan for the first time will be awarded 1 million yuan, 2 million yuan, and 4 million yuan respectively. Accommodation and catering chain enterprises whose annual sales exceed 100 million yuan, 500 million yuan, and 1 billion yuan for the first time will be awarded 500,000 yuan, 1.5 million yuan, and 3 million yuan respectively. If an existing branch is converted into a subsidiary of a chain enterprise, it shall be awarded with reference to the provisions of this article.

Encourage chain enterprise to improve competitiveness. Chain enterprises headquartered in Jinan that are first assessed as "Top 100 Shandong Enterprises", "Top 500 Private Enterprises in China", "Top 500 Chinese Enterprises", "Top 100 Chinese Chain Enterprises" and "Top 500 Enterprises in the World" will be subsidized in accordance with "Several Policies of Jinan City to Encourage Headquarters Economic Development".

Help Jinan-headquartered chain enterprises expand into overseas markets. For enterprises that set up company-owned stores with an operating area of more than 2,000 square meters outside Jinan, subsidies of 200,000 yuan will be granted for each store.

Encourage chain enterprises to adapt unified accounting, so as to reduce management and human resource costs, improve operation efficiency and increase potential profit.

3. Support the upgrading of chain enterprises

Encourage large and medium-sized chain-operated enterprises to build business outlets in rural areas. For commercial distribution enterprises above designated size with more than 20 chain stores, if the number of newly-built directly-operated stores in the district or town where they are located reaches 10, and the construction area of a store is at least 300 square meters, each store will be given a maximum subsidy of 50,000 yuan. The maximum subsidy for each enterprise is 500,000 yuan.

Encourage chain enterprise above designated size to organize sales promotion activities. Enterprises that organize sales promotion activities around the city and whose annual sales increased by more than 20 percent year-on-year through the promotional activities will receive 20 percent of the expense on promotion activities  and the maximum for each enterprise is 500,000 yuan per year.

4. Help chain convenience stores develop in a branded, chained and intelligent way

Help convenience stores upgrade and set up new stores. For old convenience stores with more than 20 outlets and that have a single operating area above 60 square meters, 30 percent of the expense on hardware investment will be subsidized for each upgraded store and the maximum subsidy is 20,000 yuan. For branded chain convenience store that has more than 30 outlets, subsidy of 30,000 will be granted for each newly opened outlet with an operating area of more than 80 square meters. The maximum subsidy for each enterprise for upgrading and setting up a new outlets is 1 million yuan.

Support the development of unmanned 24-hour convenience stores. For branded chain convenient stores that have more than 30 outlets and provide handy services to the public, a subsidy of 50,000 yuan will be granted for each new unmanned outlet or a 24-hour outlet of 60 square meters, and the maximum subsidy for each enterprise is 1 million yuan. Encourage enterprise to set intelligent retail cabinets at public places such as parks, hospitals and subway stations. For enterprises that set up at least 30 retail cabinets in one year, a subsidy of 2,000 will be granted for each cabinet and the maximum subsidy for each enterprise is 100,000 yuan.

Help well-known convenient stores set up operations in Jinan. For internationally well-known convenience stores that set up headquarters or subsidiaries in Jinan, 20 percent of the annual investment will be subsidized and the maximum subsidy is 1 million yuan. For domestically well-known convenience stores that set up headquarters or subsidiaries in Jinan, 10 percent of annual investment will be subsidized and the maximum subsidy is 500,000 yuan.

Encourage branded chain convenient stores to provide handy services in terms of catering, drugs, vegetables, fruit, books, video and audio, recharge of natural gas, and bus cards. Encourage branded chain convenience stores to open unmanned 24-hour stores.

III. Support talent introduction

Senior management personnel and professional technicians introduced by the first store of  commercial branded enterprise and chain enterprises can benefit from favorable policies for talent in Jinan.

VI. Identification and Implementation

i. The first store of a commercial brand and newly established chain enterprise (including chain convenience store) refers to an enterprise that opened for the first time since Jan 1, 2019, conducted business registration in Jinan, and adapted unified accounting. The identification of the first store of commercial brands and chain enterprises shall be subject to the identification of chain operation associations recognized by third-party review agencies employed by commerce authorities.

ii. International brands are brands of foreign-funded commercial circulation companies that have registered in China's administrative regions (including Hong Kong, Macao and Taiwan). Local brands refer to brands of domestically-funded commercial circulation companies that have been registered in China's administrative regions (excluding Hong Kong, Macao and Taiwan).

iii. Brand chain convenience stores are convenience stores with a unified image and logo, unified store management and control, unified facility configuration, unified service standards, unified commodity procurement, and unified logistics and distribution, and that operate directly. Chain operation enterprises generally refer to enterprises whose self-operated stores account for more than half of the total number and have a distribution center.

iv. The same project does not repeatedly enjoy government financial support and subsidies, and if it conforms to the relevant supporting policies, it shall be subsidized in accordance with the principle of "higher without duplication". The above funds mainly support enterprises that are registered in Jinan and have unified accounting.

v. For the part of the measure that involves the city's original support policy, the funding method will be implemented in accordance with the original policy; for the new part, the funding method will be undertaken by the city, districts and counties in accordance with the current financial system.

This measure is organized, implemented and interpreted by the Jinan Municipal Bureau of Commerce. It will be implemented from the date of issuance and will be valid until Oct 29, 2022.