Suning.com May Adjust RMB 20 Bln Sales Target
TechWeb, 11/23/12
Li Bin, Executive VP of Chinese consumer electronics and home appliances retailer Suning's (002024.SZ) e-commerce platform, Suning.com, revealed today that it may adjust its 2012 sales target - previously set at RMB 20 bln - based on December sales performance. According to Li "RMB 20 bln in sales is not a difficult task, but we don't see sales totals as particularly important, what we focus on is whether or not we completing our previously laid out company goals. This year we met all of our non-3C, home appliance, and operations targets."
In addition to pricing, Li believes Suning.com holds the advantage of having lower operating costs than its competitors. According to Li, "Our electrical appliance and 3C operating costs are around 10% lower than those of our competitors."
Suning.com recently purchased maternity and baby products B2C site Redbaby for a sum of USD 66 mln. Li stated that Redbaby is currently undergoing personnel and back-end system integration with Suning.com. According to Li, the company would consider further acquisitions in the vertically integrated e-commerce sector.
Editor's Note: For more background on this topic, please see "Suning Launches Year-End Sales Event" MD 11/16/12 issue.
Keywords: consumer electronics e-commerce Redbaby Internet B2C Suning home appliances sales target 002024.SZ Li Bin online childcare Suning Yigou
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