Suning Allies with 8 Banks to Promote Credit Card Purchasing
Netease Tech, 1/13/09
Consumer electronics and home appliance retailer Suning (002024.SZ) has revealed that over the next month, it will partner with eight banks, including the China Merchants Bank, CITIC, the Industrial and Commercial Bank of China, China Minsheng Bank, the Bank of Communications, and Everbright Bank, on testing credit purchases at Suning's 50 Beijing stores. Customers using credit cards from these banks will be able to make purchases on layaway with no additional fees. The price threshold for credit purchases will also be lowered to RMB 1,500.
Suning VP Fan Zhijun predicted that the company's credit purchase promotion could bring an additional RMB 1 bln in sales in 2009, which would make Suning responsible for RMB 40 mln in processing costs. The company plans to introduce similar partnerships with banks across the country within the year.
In 2005, Suning rival Gome (0493.HK) introduced a similar partnership with China Merchants Bank and CITIC, with price thresholds of RMB 3,000 and higher.
Keywords: 002024.SZ 0493.HK Bank of China Bank of Communications China Merchants Bank CITIC Commercial Bank of China credit card Everbright Bank Fan Zhijun Gome hardware Minsheng Bank Suning home appliances ICBC retail
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