E-commerce platform Suning.com boosts sales
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Chinese O2O retailer Suning.com says sales from its online platforms and physical stores rose by 24.27 percent in the third quarter, reaching RMB 171.43 billion (US$24.4 billion).
The company closed the quarter with 470 million registered members and the number of active monthly users rose by 48 percent. Suning.com now hosts 8407 self-operated and franchised stores.
Net income attributed to shareholders was RMB 11.9 billion ($1.7 billion)
The company expects to receive a significant boost from the acquisition of an 80-per-cent share in the Carrefour China operations in late September, adding to the previously acquired Wanda department store network. It describes the move as part of a mission to create a multi-platform retail business for China, spanning third-party marketplaces, its own physical stores and its own online offer.
Following the Carrefour deal, Suning.com has now formed a network comprising Suning supermarkets, offline Carrefour supermarkets, SuFresh boutique supermarkets and Suning Xiaodian (neighborhood convenience stores). More than 200 Carrefour stores will launch a full upgrade by the end of the year.
“The introduction of Carrefour’s supply-chain capabilities will effectively leverage the advantages of large-scale procurement, and help establish an efficient warehouse allocation system to promote the rapid development of Suning.com’s FMCG categories,” the company said in a statement.
In the prior three quarters, Suning.com increased investment in logistics, technology and in building out other core capacities to lay a solid foundation for growth over the next decade.
Questions & Answers
Q.What contributed to the increase in Suning.com's sales during the third quarter?
What contributed to the increase in Suning.com's sales during the third quarter?
Sales rose from the company's online platforms and physical stores. The total sales reached RMB 171.43 billion (US$24.4 billion), marking a 24.27 percent increase in the third quarter.
Q.How has Suning.com expanded its network of stores recently?
How has Suning.com expanded its network of stores recently?
Following the acquisition of an 80-per-cent share in Carrefour China and the previously acquired Wanda department store network, Suning.com now has a network including Suning supermarkets, Carrefour supermarkets, SuFresh boutique supermarkets and Suning Xiaodian.
Q.What is the expected benefit of integrating Carrefour's operations?
What is the expected benefit of integrating Carrefour's operations?
The introduction of Carrefour's supply-chain capabilities is expected to use large-scale procurement advantages. This will also help establish an efficient warehouse allocation system for Suning.com's fast-moving consumer goods categories.
Q.What strategic investments has Suning.com made in the past year?
What strategic investments has Suning.com made in the past year?
In the prior three quarters, Suning.com increased investment in logistics and technology. This was done to build out other core capacities, laying a solid foundation for growth over the next decade.
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