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Suning Announces New Company Structure

Sina Tech, 2/21/13

At a press conference today, Chinese consumer electronics and home appliances retailer Suning (002024.SZ) announced plans to restructure the company. Suning VP Meng Xiangsheng said that the largest change would be the company's shift from a matrix organizational structure to a business group-based organization.

Suning has set up management centers for the company's chain development, marketing and sales, services and logistics, financial data, and administration and HR divisions at its headquarters. The new centers will oversee strategy and planning, standard specification, and plan management, and will coordinate between operational business groups.

At the headquarters operations level, Suning has added three new headquarters for chain platform management, e-commerce management, and brand management, covering 28 business divisions in the areas of physical products, content products, and service products.

Suning's chief goals for the restructuring at the regional level were flattening vertical management and localizing independent management. The company will streamline its three-tier structure (region/subsidiary/operations division) to a two-tier structure (region/city) this year, and will increase the number of "regions" in mainland China and abroad from 44 to 60, and the number of cities from more than 100 to more than 200.

Discussing personnel arrangements, Meng said that Suning had undertaken a massive internal campaign to identify and promote talent, leading to a total of more than 3,000 promotions. The initial list of senior management appointments contains Li Bin, who was responsible for Suning's e-commerce platform, and Tian Rui, director of offline chain platform operations. Both have been promoted to the position of assistant to the president of the group. Personnel responsible for the North China, West China, Northeast China, and South China regions and new services including virtual operations and delivery have been brought into the company's overall operational strategy drafting.

Suning's e-commerce management headquarters will be divided into eight business divisions responsible for online shopping, mobile shopping, local and lifestyle services, travel, financial products, digital applications, cloud products, and logistics. The logistics business division will fall under the unified management of Suning's services and logistics headquarters.

In 2013, Meng said, Suning will begin recruiting professional, mature talents to work in its e-commerce operations, IT development, business venue management, and new product management divisions, with the goal of recruiting 8,000 new employees over the next three years. Suning also plans campus recruitments of 30,000 new university graduates over the same period.

Keywords: B2C Meng Xiangsheng consumer electronics e-commerce Internet strategy Suning home appliances HR 002024.SZ Li Bin Tian Rui corporate restructuring


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