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Alibaba and Suning aim to increase sales to 400 billion yuan in three years

By Wang Zhuoqiong (chinadaily.com.cn) Updated: 2016-06-03 09:50

Alibaba and Suning aim to increase sales to 400 billion yuan in three years

A pedestrian walks past a store of Suning.com, the online shopping site of home appliance chain Suning, in Shanghai, Jan 19, 2016. [Photo/IC]

Alibaba Group and Suning Commerce Group Co announced an alliance with home appliance brands on Wednesday to stimulate their sales to reach a total of about 400 billion yuan in the next three years.

Under the new strategy, home appliance brands including Midea, Haier, Samsung, Hisense, Huawei and Xiaomi will increase their annual sales revenue to 50 billion yuan in three years from the current 10 billion yuan.

With Alibaba's nearly 700 million members and Suning's 1600 physical stores selling baby products and appliances, the new model is hoping to help brands with resources in big data, logistics and sales from both Alibaba and Suning.

Zhang Jindong, chairman of Suning, said the new model that integrates online and offline commerce will break the invisible walls between brand producers and consumers.

In 10 months, the two titans of the Chinese retail industry have completed their business transactions since the announcement last August of their strategic partnership.

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