NANJING, China, Nov. 9, 2017 /PRNewswire/Korea IT Times -- Suning Holdings Group ("Suning" or "the Group"), a leading commercial conglomerate in China, has inked an RMB 20 billion (US$ 3 billion) investment agreement with Evergrande Real Estate Group ("Evergrande") recently. Separately, Suning has also reached an extensive retail cooperation, which is worth at least RMB 50 billion (US$ 8 billion), with Hon Hai Technology Group ("Hon Hai").
Formed just before China's largest annual shopping spree, the "11/11 Shopping Festival", the partnerships are part of Suning's efforts to integrate online and offline channels and further implement its Smart Retail strategy.
Evergrande, the China's leading property developer, will provide commercial facilities to Suning, helping its brick-and-mortar stores cultivate personalized shopping experiences in different regions and communities. It would certainly be a boost for Suning as the retail giant is planning to add 5,000 physical stores with connections to its online presence by 2018. The two companies will also explore smart home design, property management and other priorities.
The cooperation between Suning and Hon Hai focuses on the knowledge sharing of big data analytics. Hon Hai is world's largest contract electronics manufacturer. The two sides will utilize big data know-how to optimize strategies and products from manufacturing to marketing, creating customized services. Terry Gou, Chairman of Hon Hai, highly appraised Suning's Smart Retail strategy and emphasized that the cross-industry cooperation should start from manufacturing to better satisfy customers' needs.
Zhang Jindong, Chairman of Suning, viewed the two partnerships as significant opportunities to leverage Suning's advantages and resources in Online-to-Offline (O2O) retail and further implement its Smart Retail strategy. "By partnering with Evergrande, Suning's advantages in innovative O2O physical stores would be strengthened in a more efficient way. By working with Hon Hai, we create highly-curated experiences through an open business model with extensive data and technology sharing," said Zhang.
Since its first venture into e-commerce business in 2010, Suning has honed its expertise and experience in online retail. According to its recently-released financial report, the Group's O2O business has enjoyed a robust year in 2017.
- By the third quarter of 2017, Suning had a total of 3,748 physical stores in China and overseas.
- Revenue from physical stores with online connections increased by 35.27% in the first three quarters on a year-on-year basis.
- In the first three quarters, the total transaction volume of Suning's online presence reached RMB 81 billion (US$ 12 billion), a year-on-year rise of 55.64%.
As the retail industry being disrupted by O2O boom, Suning's partnership with Evergrande and Hon Hai, which is based on a well-developed Smart Retail model that integrates online and offline platforms skillfully, will bring an inspiring message to the industry.
About Evergrande Real Estate Group
A subsidiary of the Evergrande Group, a Fortune Global 500 company, Evergrande Real Estate Group makes top-quality products and builds real estate for people's wellbeing. It has more than 700 projects in more than 240 cities in China. In 2016, it realized sales of RMB 373.4 billion (US$ 56.1 billion), which ranked first in the industry.
About Hon Hai / Foxconn Technology Group
Hon Hai Technology Group is a multinational electronics manufacturing company. It offers services in joint-design, joint-development, manufacturing, and assembly to global Computer, Communication and Consumer-electronics ("3C") leaders. Hon Hai is also the world's largest contract electronics manufacturer.
About Suning Holdings Group
Founded in 1990, Suning is one of the leading commercial enterprises in China with 180,000 employees and two listed companies in China and Japan. Through decades of growth and transformation, Suning has established a business presence in six industries. In 2017, Suning was ranked second on the list of China's top 500 non-state owned enterprises, and for the first time in corporate history, Suning Commerce, under Suning Holdings Group, was named to the 2017 list of the Fortune Global 500.
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