It’s not just a store chain that Suning has in its kitty. The company’s business-to-consumer ecommerce operations have been expanding rapidly. Online sales were over $1.73 billion in the first half of 2013, and Suning is looking to increase its market share by as much as 30% by 2020.
In addition to its ecommerce efforts, Suning has also entered the auto market. The company has invested $200 million in the Chinese car maker Byton and has recently entered into a strategic partnership with Nio, a Chinese automotive manufacturer that specializes in the design and development of electric vehicles. This long-term collaboration will help the companies strengthen their strategic partnerships in a variety of fields, including automobile, retail and ecommerce.
While Suning has been an active player in the retail industry, its recent foray into ecommerce has prompted many industry experts to rethink the definition of “retail” in China. Instead of the traditional notion of a shop, the company’s new ecommerce arm will sell on an online platform operated by Yunwang Wandian. Besides a slew of popular consumer electronics and other consumer durables, the company will also focus on products from overseas brands that aren’t available in China yet.
The company has a slew of different businesses, ranging from its retail arm to its financial services division. Among these is the Suning Consumer Finance Company, which provides a range of financing options to consumers. One of the most important components of the finance arm is its supply chain finance. Among its other offerings, the company has an “SME finance” division which focuses on small businesses and a “payment” division.
Although the Chinese ecommerce market is still very young, the company has already carved out a spot as one of the country’s top online retailers. Not only is the company a leader in ecommerce in China, it is also one of the nation’s leading providers of electronic goods. With a combined workforce of more than 13,000, the company has been listed on the stock exchange since 2004. Besides its ecommerce arm, the company also has a subsidiary that offers installation services for electronic appliances. For the next few years, the company plans to expand its retail footprint while increasing its ecommerce presence.
Other companies in the ecommerce space include Tmall, Jingdong, and Tencent Holdings. While all of them have their merits, a few stand out among the rest.
