Suning’s Latest Strategy Mixes Chinese Suppliers With Online Commerce

Suning.com, the Internet retail platform of the Chinese home appliances retailer Suning, has announced its open platform strategy, stating that it will fully open its data information, logistics and funding platforms.

So far, over 3,000 vendors have reportedly applied to enter Suning.com, of which 1,500 have gained access. Suning.com will provide three preferential policies for these suppliers, including waiving deposit money, waiving annual fees, and waiving platform service fees.

Under the open platform strategy, Suning.com will provide complete supply chain services to vendors, covering product, procurement, sales, storage, warehouse and logistics, and after-sales service. It will open data information, logistics and funds platforms. The data information open platform includes cloud computing, wide area private network, ERP management system, and supply chain management system; the logistics open platform includes establishment of national hub, regional turnover, urban distribution, and community site; and the funds open platform includes loans, supply chain financing, investment cooperation, and contract financing.

According to Sun Weimin, vice chairman of Suning, the company’s development is divided into three stages: in 1990, the company was founded; from 1999, it started chain development; and from 2011, it began marketing changes and channel reforms. Sun said Suning’s physical stores only cover 8% to 10% of product categories; however, the Internet store will become an important channel to expand its product category. In the future, Suning will not be limited to a home appliances retailer.

Sun also revealed that the company plans to explore various industries, including real estate development.