Chinese O2O retailer Suning plans to open 10,000 new stores next year, capitalising on ‘consumption upgrade’ in China.
Founder and chairman Zhang Jindong said the company will invest 40 billion RMB (US$5.7 billion) to support its expansion spree, estimated to create 8000 new jobs.
According to the company, the increase in consumer spending with the emergence of new, more aspirational and affluent consumer groups is driving the consumption upgrade in China. The increased purchasing power in China’s lower-tier cities is also emerging as an investment magnet.
The expansion is part of the company’s ‘open from 1 to N and integration from N to 1’ strategy.
“Opening from 1 to N refers to how Suning is opening up its core business of retail through multi-channel, full-scenario categories to empower the industry and society at large. Integrating from N to 1 refers to the integration of Suning’s scenarios and supply chain, converging online and physical retail to focus on consumer experience and providing diversified services of a consistent quality for every consumer,” it says.
Earlier this year, Suning acquired 37 Wanda department stores and bought an 80-per-cent stake in Carrefour’s Chinese operations. The company is recognised as one of the top three among the top 500 non-state-owned enterprises in China.