Beijing Morning Post, 5/31/11
Sun Weimin, deputy chairman of Chinese consumer electronics and home appliances retailer Suning (002024.SZ), announced recently from Beijing that the company's B2C platform, Suning Yigou (Suning.com), expects revenues to reach RMB 8 bln this year. Suning.com general manager Ling Guosheng revealed that the company completed RMB 1.29 bln in sales in the first quarter this year, and product categories on the site now include traditional home appliances, handsets and consumer electronics, handbags, and apparel. Suning.com will begin carrying books and sporting goods in June.
Ling said that talks are now underway with B2C e-commerce site Dangdang (NYSE: DANG), which Ling described as "an ideal partner" given the prominence of consumer electronics in Dangdang's overall strategy and its large-scale procurement needs. At the same time, Suning.com is exploring options for a partnership with Dangdang's book channel, and the variety of product categories on Suning.com is poised to surpass those available in Suning's brick-and-mortar retail locations.
As part of its goal to bring turnover for Suning's e-commerce platform on par with that of its physical outlets, Suning Yigou E-Commerce Co. Ltd., which operates the website, will offer 5% to 10% of its shares as an incentive to new hires.
Suning.com's e-commerce service standards call for the construction of a national logistics network, and the site plans to offer same-day delivery in 100 cities and next-day delivery in 220 cities within the year. For products requiring installation, installation is guaranteed to be finished within 24 hours after an order is shipped, and compensation will be offered if delivery is delayed due to installation issues. Appliances come with a free lifetime warranty and can be exchanged at any physical Suning outlet.
Editor's Note: For more information on this topic, please see "Rumor: Dangdang, Suning in E-Commerce Partnership Talks" MD 4/26/11 issue.