Hangzhou-based Tian Tian Express will undertake about 30% of the delivery volume during Chinese consumer electronics and home appliance retailer Suning Commerce's (002024.SZ) online 818 Shopping Holiday event, to be held on August 18. This is the first major cooperation between the two companies since Suning announced it would acquire the logistics company.
Tian Tian Express will send its delivery agents to pick up products from Suning warehouses, interface with Suning's system, and provide delivery to the end user. Suning and Tian Tian Express will jointly operate sites in major cities, such as Beijing, Guangzhou, Shenzhen, Nanjing, Wuhan, and Chengdu, for the 818 promotion.
Tian Tian Express will also work with Suning to craft new unified service standards. Tian Tian Express will conduct 100% of the product inspection and delivery services for Suning.com's self-operated business. Suning will collect information on Tian Tian Express employees and run them through the same service training and evaluation system as its own.
By connecting their data, the information flow will create a closed loop for Suning and Tian Tian Express. Users who purchase goods on August 18 will be able to check shipping status from either Tian Tian Express or Suning's websites.
According to a filing (link in Chinese) from Suning Commerce, the company completed its purchase of a 70% stake in Tian Tian Express on April 29, and said that it would acquire the remaining 30% at a later date.
Editor's Note: For more information on this topic, please see "Suning Commerce to Acquire Courier Firm Tian Tian Express," MD 1/03/17 issue.