Alibaba invests in electronics chain

Alibaba invests in electronics chain

Chinese Alibaba is to invest four billion euro in Suning Commerce Group, also from China, in exchange for 19.99 % of its shares. On the other hand, the electronics chain will buy two billion euros' worth of shares in Alibaba.

Online and offline integration

The deal's goal is to get a collaboration going between both companies in the fields of logistics and online sales. Alibaba wants to get Suning products delivered within a 2-hour period. "This new alliance will introduce a new business model, one that completely integrates online and offline", Alibaba CEO Jack Ma said regarding the investment.

 

Suning has more than 1,600 stores in 289 Chinese cities and sells household appliances, books and baby products. Trailing chairman Zhang Jindong, Alibaba will become the company's second largest shareholder. Suning's biggest competitor, Gome Electrical Appliances, instantly grew 50 % after a recent acquisition and currently has 1,714 stores in 436 cities.

Questions or comments? Please feel free to contact the editors


Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Alibaba exceeds expectations

17/08/2017

Chinese Alibaba has trumped analysts’ turnover and profit expectations with its first quarter results. Its profit even doubled compared to the year before.

Aldi will home deliver in the United States

16/08/2017

German discounter Aldi is starting one-hour deliveries for online orders in the United States, using startup Instacart. Amazon’s reaction was swift: it will test lockers in which custumers can collect items two minutes after ordering them.

Yoox-Net-a-Porter thrives thanks to mobile surge

03/08/2017

Online retailer Yoox-Net-a-Porter has managed to beat analysts’ expectations in the past fiscal year, thanks to a surge in mobile sales. For the first time ever, these sales contributed more than half of the retailer’s total turnover.

Lidl constructs new distribution center in Venlo

01/08/2017

Lidl will open a new distribution center in Venlo, which will cater its web shop’s customer base. The distribution center is not a Lidl Netherlands project, but apparently an international project.

Amazon places own pick-up lockers at consumers' homes

31/07/2017

Amazon announced The Hub, a system of pick-up lockers that can be placed everywhere. They come in different sizes and can be placed both inside or outside of buildings.

Back to top