Country for PR: China
Contributor: PR Newswire Asia (China)
Saturday, August 01 2020 - 09:16
AsiaNet
Suning.com Reports Outstanding Growth with 20% Increase in Online Business
NANJING, China, Aug. 1, 2020 /PRNewswire-AsiaNet/--

On the evening of July 30, Suning.com (002024.SZ), China's leading O2O smart 
retailer owned by Suning Holdings Group, released its mid-year performance 
preview report for the first half of 2020. According to the report, 
Suning.com's sales volume reached RMB 194.155 billion for the period between 
January and June 2020, which was a year-on-year increase of 5.40%. Online sales 
volume grew significantly by 20.19% year-on-year and now accounts for 69.43% of 
the total business. 

In H1, the domestic economy has faced significant challenges as a result of the 
COVID-19 pandemic. During these unprecedented times, Suning.com leveraged both 
its online and offline capabilities, pivoted its business strategy and focused 
on improving business quality and efficiency — all whilst improving its 
profitability. Thanks to its swift response, Suning.com achieved a marked 
improvement in its operating income, which increased 76.74% year-on-year to RMB 
118.24 billion. 

Online Sales Volume Grew Fast 

The offline retail environment faced immense pressure in the wake of the 
pandemic and was one of the key industries affected in H1. However, the 
stay-at-home economy drove a surge in online sales, with data revealing that 
online sales in China increased by 7.3% year-on-year. Suning.com focused on 
ensuring seamless operation across online platforms, while also promoting sales 
for offline stores through digital means using community marketing, off-site 
sales and home delivery. As a result, Suning.com recorded a 20.19% increase in 
online sales year-on-year — and in Q2 alone, online sales saw the highest surge 
in six quarters with a year-on-year increase of 27.11%.

In addition, Suning.com accelerated the transformation of its offline outlets 
into retail cloud stores during the pandemic. At the end of June, Suning.com's 
push orders from offline stores increased by 113.80% year-on-year.

In H1, Suning.com made rapid breakthroughs in the FMCG category through its 
core partnership with Carrefour China. Between January and June, sales volume 
for general merchandise increased by 106.70% year-on-year, and this number is 
only expected to grow as a result of 818. Carrefour's online operation 
capabilities have also improved significantly in H1, and the company has seen 
marked growth in its door-to-door business, as well as the proportion of 
traffic from Suning.com's ecosystem. 

Recognizing the trends in online shopping, Suning.com has actively generated 
consumer demand across its member base through strengthened social media 
marketing and partnerships with micro-video platforms. The business acquired an 
additional 46.83 million registered users in the first half of the year, as 
well as an uptick in the number of active users in June, which grew 22.37% 
increase year-on-year. As of June 30, Suning.com had 602 million registered 
members.

From Retailer to Retail Service Provider 

Further to this, Suning.com accelerated its expansion plans and strategically 
upgraded its retail service providers. In addition to actively responding to 
the challenges of the pandemic, Suning.com harnessed the opportunity to 
fast-track the expansion of its retail infrastructure and accelerate its 
ambitions to shift from being a retailer to a retail service provider. 

Suning.com deepened its open digital platform capabilities to allow for 
personalized recommendations, data marketing tools, and logistics and 
warehousing services. These capabilities empower merchants to improve traffic 
distribution and conversion efficiency, and enhance the product experience for 
users. The preview reports reveal that the proportion of non-electrical product 
merchants on the platform increased to 87% in H1. The volume of merchants and 
merchant activity also increased significantly in this period. Furthermore, 
commodity transactions on the open platform grew 63.71% year-on-year to reach 
RMB 53.133 billion. 

Through the power of digital, Suning.com's retail cloud franchise stores broke 
down the distinction between online and offline stores to create a new business 
model that combines the supply chain with offline stores and social eCommerce. 
As a result, Suning.com's retail cloud franchise stores went against the 
downward trend of the pandemic, with 1,563 new retail cloud franchises opening 
in H1. To support the rapid deployment of these stores, Suning.com also 
enhanced its logistics and after-sales service capabilities in rural markets.

On the logistics infrastructure front, Suning.com put 58 logistics bases into 
operation in 44 cities across the country as of June 2020. In the first half of 
the year, Suning Logistics promoted its partner mechanism for terminal outlets, 
empowered terminal logistics nodes and improved operational efficiency. The 
company also focused on the ongoing integration of warehousing and distribution 
services, and increased its openness to external partners. At the end of June 
2020, Suning Logistics had increased its total capacity for external partners 
by 77% year-on-year.

On July 27th, during its 818 conference, Suning.com reinforced its strategic 
plans to upgrade to a retail service provider in the next ten years. In 
addition, the business announced it will further consolidate and export its 
five service capabilities spanning supply chain, logistics, user scenarios, 
finance and technology; while simultaneously broadening its small, medium and 
micro enterprises in the energy industry ecosystem to better meet the needs of 
users.

About Suning Holdings Group
Founded in 1990, Suning is one of the leading commercial enterprises in China 
with two public companies in China and Japan. In 2019, Suning Holdings Group 
ranked as the top three brands among the top 500 non-state-owned enterprises in 
China with annual revenues of RMB 602.5 billion (approximately EURO 77.24 
billion) and continued to top the list of Internet retailing category. Adhering 
to the enterprise mission of "Leading the Ecosystem across Industries by 
Creating Elite Quality of Life for All", Suning has strengthened and expanded 
its core business as retail through a corporate ecosystem comprised by multiple 
vertical industries, including commercial real estate, financial services and 
sports. Suning.com, the main subsidiary pioneering in online and offline 
retailing, has been listed in the Fortune Global 500 for three successive years 
from 2017 to 2019.

Source: Suning Holdings Group
Translations

Japanese