Suning to Establish 8 Subsidiaries
Sina Tech, 2/21/14
Chinese consumer electronics and home appliances retailer Suning (002024.SZ) has announced details regarding the company's spring quarter internal restructuring, which include the formation of Product Sales and Operations divisions, as well as the establishment of 8 subsidiary companies.
Newly established subsidiaries include maternity and baby products site Redbaby, P2P streaming video platform PPLive (PPTV), and group buying site Manzuo.com, all of which previously operated under the Suning umbrella, as well as new subsidiaries providing logistics, finance, and wireless services. As subsidiaries, the newly formed units will operate with a relatively high degree of autonomy.
Suning has designated maternity and baby products as an area of focus for 2014, and plans for Redbaby to open 8 physical stores during the year, as well as develop a nation-wide supply chain selling both self-operated and third-party childcare products. Suning also plans to expand its online video content, lifestyle services, and wireless services markets through the company's newly established PPTV, Manzuo.com, and wireless subsidiaries.
Suning's new logistics subsidiary will see the business open its logistics services not only to Suning's self-operated e-commerce platform, but also to merchants on Suning's open platform site. The company's finance subsidiary will operate Suning's upcoming "Lingqian Bao" account balance value added service (VAS) product, which will allow merchants and suppliers to purchase investment products using funds in their "Yifubao" accounts, Suning's own third-party payment platform. Suning has secured an insurance sales license for the service, and will soon launch a customer-facing public investment product on the site.
Editor's Note: For more information on this topic, please see "Rumor: Suning to Merge Suning.com with Offline Retail Business," MD 2/14/14 and "Suning to Spin Off Redbaby," MD 2/21/14 and "Suning to Launch Internet Finance Product for Merchants, Suppliers," MD 2/13/14 issues.
Keywords: corporate restructuring consumer electronics e-commerce Redbaby Internet wireless online video PPLive Suning home appliances third-party payment 002024.SZ logistics group buying Manzuo open platform Yifubao online childcare Suning Yigou B2C
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