Suning Holdings deals to boost smart retailing
China’s commercial conglomerate Suning Holdings Group is partnering with Hon Hai Technology Group in an “extensive retail co-operation” worth at least RMB50 billion (US$8 billion).
Suning has also signed an RMB20 billion investment agreement with Evergrande Real Estate Group. Both moves are aimed at online/offline integration and expanding Suning’s smart-retail strategy.
The property developer will help Suning develop its brick-and-mortar stores for personalised shopping experiences, and also help with its planned expansion of 5000 stores in the short term.
The two companies will also explore smart home design, property management and other priorities.
With Hon Hai, said to be the world’s largest contract electronics manufacturer, the co-operation focuses on the sharing of big-data analytics to optimise strategies and products for customised services. Hon Hai chairman Terry Gou says cross-industry co-operation should start from manufacturing to better satisfy customers’ needs.
“By partnering with Evergrande, Suning’s advantages in innovative O2O physical stores will be strengthened more efficiently, and by working with Hon Hai we can create curated experiences through an open business model,” says Suning chairman Zhang Jindong.
Suning ventured into e-commerce in 2010. By the third quarter this year it had 3748 stores in China and overseas. Revenue from its stores with online connections jumped by 35.27 per cent in the first three-quarters year on year. In the same period, its total transaction volume online reached RMB81 billion, a year-on-year rise of 55.64 per cent.