Arab Today, arab today alibaba buys 20 stake in suning
Last Updated : GMT 21:21:01
Arab Today, arab today
Arab Today, arab today

Alibaba buys 20% stake in Suning

Arab Today, arab today

Arab Today, arab today Alibaba buys 20% stake in Suning

Alibaba buys 20% stake in Suning
Beijing - XINHUA

Alibaba Group Holding Ltd said on Monday that it will spend 28.3 billion yuan ($4.56 billion) for a 20 percent stake in Suning Commerce Group Co Ltd, in a deal that allies the e-commerce giant with the leading electronics retailer.

Consequent to the deal, Alibaba will be Suning's second-largest shareholder with a 19.99 percent stake. As a further sign of the two firms integrating their online and store-based shopping businesses, Suning said it would invest 14 billion yuan to acquire a 1.1 percent stake in Alibaba.

In a joint statement released by the two companies, they said the alliance will allow them to combine Alibaba's online strength with Suning's offline resources and enable consumers to have better shopping experiences.

Industry sources said the deal, which turns former foes to friends, is expected to shrink the market share for smaller players and bring about consolidation in the highly competitive e-commerce market.

Ironically, e-commerce firms have often been held responsible for the death of brick-and-mortar retailers. But Jack Ma, chairman of Alibaba, reiterated that upending the traditional retail sector was not the goal of his company.

Ma said at a press conference in Nanjing, Jiangsu province, where Suning is located, that Internet companies will not survive in the long run without cooperating with brick-and-mortar partners.

He said that since last year, Alibaba has been investing in offline service providers to boost the so-called business ecosystem in which vendors, online platforms and shoppers can achieve shared benefits.

Zhang Jindong, chairman of Suning, said the online and offline integration is offering more options to consumers who care more about how their demands get met and convenience rather than the online or offline business models. Zhang said Suning will reach wider users through Alibaba's platform and improve its product innovation with data from Alibaba.

Under the partnership, shoppers can not only select items online at Alibaba's platforms but also try out products at Suning's 1,600 outlets across China before placing orders. And rather than queuing for payment, they can choose to pay via smartphones as Suning's outlets will in all probability be connected with Alipay, the e-payment tool backed by Alibaba.

Suning, which has a strong logistics operation that penetrates to underdeveloped regions in China, would join forces with Alibaba's Cainiao distribution network to deliver goods in almost all of the 2,800 counties and districts in China, the companies said.

The partnership is expected to pose a major threat to JD.com Inc, which specializes in selling branded electronics, said Hu Yanping, analyst with DCCI Data Center of China Internet.

JD.com is China's second-largest business-to-customer e-commerce player by market share.

Despite a lot of effort to expand its product portfolio, many consumers in China still see JD.com as a reliable channel for selling electronics. "With Suning's advantage in electronics, the consumer electronics business unit of Alibaba, which is strong for selling garments, will get an immediate boost," he said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today alibaba buys 20 stake in suning Arab Today, arab today alibaba buys 20 stake in suning

 



Arab Today, arab today
Arab Today, arab today Reveals his participation in "Fashion Star" TV show

GMT 12:49 2017 Wednesday ,01 March

Reveals his participation in "Fashion Star" TV show
Arab Today, arab today Egyptair and Etihad Airways sign partnership

GMT 21:08 2017 Wednesday ,01 March

Egyptair and Etihad Airways sign partnership
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN report confirms war crimes were committed

GMT 20:43 2017 Wednesday ,01 March

UN report confirms war crimes were committed
Arab Today, arab today NUMP's conference to discuss proplems

GMT 13:40 2017 Wednesday ,01 March

NUMP's conference to discuss proplems
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Lasers flesh out dino-bird profile

GMT 12:24 2017 Wednesday ,01 March

Lasers flesh out dino-bird profile
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Final Phantom VII signals end of an era

GMT 14:31 2017 Tuesday ,28 February

Final Phantom VII signals end of an era
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Najla Badr will participate in “30 Days” drama

GMT 06:23 2017 Monday ,27 February

Najla Badr will participate in “30 Days” drama
Arab Today, arab today Humans spark most US wildfires

GMT 14:58 2017 Tuesday ,28 February

Humans spark most US wildfires

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 07:54 2017 Wednesday ,01 March

Shanghai expands public smoking ban

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom,China plunges into biz

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:27 2017 Wednesday ,01 March

GSMA: 5 billion mobile phone users in 2017

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday