Suning's Net Profit Surges 321.23% In First 3 Quarters As It Strengthens Integration of Online & Offline Presence
NANJING, Nov. 2, 2017 /PRNewswire/ -- Suning Commerce Group ("Suning Commerce"), a Fortune Global 500 company owned by China's commercial giant Suning Holdings Group ("Suning" or "the Group"), has reported a sky-rocketing year-on-year increase of 321.23% in net profit through the first three quarters this year, according to its just-released financial report. Together with other appealing results, the report demonstrates that the Group's innovative online-to-offline ("O2O") retail strategy has been a great success.
According to the report, Suning.com, the bellwether of Suning's e-commerce business, generated an operating revenue of RMB131.88 billion(US$19.95 billion) for the first three quarters, up 26.98% year-on-year. Net income attributable to shareholders from business operation climbed to RMB672 million(US$100 million), up 321.23% year-on-year. In Q3, the operating revenue rose 36.96% year-on-year.
The past three quarters saw the best performance of Suning's e-retail business since it geared up for O2O from 2009. Suning Commerce's online presence also reported a 65.54% rise in revenue year-on-year to RMB66.23 billion (approximately US$10 billion, including tax), contributing slightly more than half of total operating revenue.
"We're excited to see what we've achieved in the first three quarters. The retail business in China has come to a turning point. It is seen that O2O will be a trend in the next phase of the industry, and Suning is committed to fully embrace this new trend with its leading deployment of 'Smart Retail' with the expertise and technology accumulation both online and offline," said Zhang Jindong, Chairman of Suning Commerce Group and Suning Holdings Group.
Founded in 1990, Suning has opened over 3,700 physical stores both around the country and overseas, delivering customized services to various communities. With retail in its genes, Suning lunched its e-commerce platform Suning.com in 2010, and now its expertise and experience in online retail has been honed over the past eight years. In 2012, Suning proposed the innovative business model which is similar to "Walmart adds Amazon", strategically balancing its online and offline businesses to improve synergy. Sun Weimin, Deputy Chairman of Suning Commerce Group, noted that while brick-and-mortar retail is the Suning's obvious strength, it has built a vibrant online presence with advanced technologies. The O2O retail model brings one-stop seamless shopping experience to consumers, while creates recognized value for Suning and its shareholders.
The revenue and customer loyalty from the online business has been increased significantly since its inception. "Suning's online and offline businesses complement each other effectively. We are leveraging Suning's advantage in supply chains, logistics, data and financial services to create the best shopping experience," said Sun.
By 2018, Suning plans to add 5,000 physical stores that will be connected to its online presence, while another three self-service stores would be opened during China's largest annual shopping spree, the "11/11 O2O Shopping Festival".
Click here to see Suning's financial tables (Chinese only):
http://www.suning.cn/static///snsite/contentresource/2017-10-31/e169e9b3-5892-4eb1-b037-83924a895ff1.pdf
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 Fortune Global 500.
SOURCE Suning Holdings Group
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