China’s Suning Plans Move Toward Wal-Mart and Amazon Models
Suning Appliance Co. (002004), China’s biggest electronics retailer by market value, plans to expand its offerings to include daily products such as baby-care items and cosmetics.
The company wants to move to a model similar to Wal-Mart Stores Inc. (WMT) and Amazon.com Inc. (AMZN), Chairman Zhang Jindong told reporters today. The company has brick-and-mortar stores and an e-commerce business.
The retailer and competitor Gome Electrical Appliances Holding Ltd. (493) have been investing in e-commerce in China. The country’s online-retail transactions are projected to more than double to 2.57 trillion yuan ($412 billion) by 2015 from 1.22 trillion yuan last year, according to Analysys International, a Beijing-based researcher.
Suning will also go into service-based products such as customer financing.
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