Alibaba in August 2015 invested USD 4.29 billion (CNY 28.3 billion) for a 19.9% stake in Suning, scmp.com reports. The two companies will also share big data about consumption with those partnering brands which have a better understanding about the market and can improve product mix to fit consumers’ needs.
The partnership will establish a fund of USD 1.51 billion (CNY 10 billion) incubation fund to provide technical and financial support to small and medium-sized retailers. Under the broader partnership, Suning has opened a flagship store on Alibaba’s brand-focused Tmall platform. Also, Suning’s nationwide logistics network has already teamed up with Alibaba’s logistics affiliate Cainiao Network. In addition, Suning’s after-sales service centres across the nation provide repair and maintenance for Tmall consumers.
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