Suning Commerce profit ‘skyrockets’
A “skyrocketing” profit plus success with its O2O strategy has been reported by retail giant Suning Commerce Group for the first nine months of this year.
Net profit rose 321.2 per cent year on year for the Fortune Global 500 company owned by Suning Holdings Group, its financial report shows.
It describes the group’s innovative O2O retail strategy as “a great success”.
Operating revenue was up 26.9 per cent to RMB131.88 billion (US$19.95 billion), while net income attributable to shareholders climbed to RMB672 million. In the third quarter, operating revenue rose 36.9 per cent.
Suning says its e-commerce business had its best performance since gearing up for O2O in 2009, with revenue rising 65.5 per cent to RMB66.23 billion, contributing slightly more than half of total operating revenue.
Suning Commerce Group and Suning Holdings Group chairman Zhang Jindong says retail business in China has reached a turning point.
“O2O will be a trend in the next phase of the industry, and Suning is committed to fully embrace this.”
Founded in 1990, Suning has more than 3700 stores in China and overseas, with customised services for various communities. It launched Suning.com in 2010.
In 2012, Suning introduced its innovative business model to strategically balance its online and offline businesses.
Suning Commerce Group deputy-chairman Sun Weimin says that while brick-and-mortar retail is the group’s obvious strength, it has built a vibrant online presence with advanced technologies, with both revenue and customer loyalty increasing significantly since its inception.
Suning plans to connect 5000 stores to its online platform this year, with three self-service stores being launched during China’s 11/11 Shopping Festival.