O2O strategy powers Suning.com profit rise of 1957 per cent
Suning is crediting its online-to-offline business model for a 32.29 per cent boost in sales in the half year to June.
China’s largest O2O smart retailer, owned by Suning Holdings Group, says Suning.com generated a net profit of US$886 million, tax included – a massive 1957.38 per cent increase over the same period last year. Gross merchandise volume rose 44.63 per cent to US$22.365 billion.
Hou Enlong, Suning.com’s COO, said the results are a testament to the team’s commitment to the company’s smart retail strategy.
“The pure e-commerce era has come to an end. In the coming decade we’ll see more online-to-offline businesses entering the marketplace, connecting different consumption scenarios. Suning will continue to serve customers with more ‘visible’ and ‘touchable’ omni-channel online and offline services and meet the needs of our consumers regardless of time and space.”
As of June 30, Suning.com had about 357 million registered users with its app recording a 64.34 per cent increase in the number of active monthly users.
The Suning group owned 4813 direct-sale physical stores and 765 Suning retail cloud franchise stores, at the end of June. Additionally, Suning has opened 732 internet-connected convenience stores in a bid to further expand its business in lower-tier cities and rural areas in China.