Chinese online retailer Suning will reduce its dependence on electronics appliances business by diversifying its product offer.

The retailer says it will draw other shoppers – not only those who are shopping for electronics goods, but those who want to shop for products such as cosmetics and baby products. It says it will spend US$3.52 billion on logistics by the end of 2015 to support the expansion.

Suning decided to change its offer after profits fell 29 per cent for the six months to June, a fall attributed to stiff competition, price battles and weaker consumer sentiment.

“We need to cater to and invest in where the future consumer spending channels will be,” said vice chairman Sun Weimin.

The product diversification is also part of the company’s strategy to clone the business model of online giants such as Amazon and Walmart.

GB