On April 17, Suning.com (002024.SZ), China’s leading O2O smart retailer, owned by Suning Holdings Group, released 2019 annual financial result. According to the report, the company achieved revenue of RMB 269.229 billion (US Dollars 38.06 billion) in 2019; the net income attributed to shareholders was RMB 9.843 billion and 2019 GMV reached to RMB 378.74 billion, increasing by 12.47% year-on-year.
In 2019, Suning.com acquired an 80% equity stake in Carrefour China, which meant the establishment of full-scenario strategic retail layout. As of 2019, Suning.com operated 8,216 stores of various types, and the number of Retail Cloud franchises in lower-tier market reached to 4,586. The online GMV also rose to RMB 238.753 billion and the GMV of open platforms achieved to RMB 80.314 billion, growing by 37.14% year-on-year.
Furthermore, the strategy of full-category was productive for Suning.com in 2019. General merchandise steadily increased by 115.44% year-on-year, rising to the second place of total revenue, following home appliance category. The full-category and omni-channel mode attracted more consumers based on more home-delivery business, which helped the company to improve consumers’ shopping experience and strengthen consumers’ activities and brand loyalty.
It’s worth mentioning that Carrefour China has steadily improved its operating efficiency. According to preview of Suning.com Q1 financial result, Carrefour China has achieved two consecutive quarterly profits and the home-delivery service has gained a prominent performance, accounting for 10% of total Carrefour sales in March. With the gradual transformation of Carrefour stores, Suning.com has built a comprehensive FMCG supply chain with the store-warehouse integration between Suning Convenience Stores and Carrefour. Through this mode, Suning.com can realize a quick replenishment for stores and for home-delivery, by full-scenario, real-time and low-cost.
In terms of logistics infrastructure, by the end of 2019, Suning Logistics has 25,881 delivery outlets and the total area of warehousing and related support facilities for Suning Logistics was 12.1 million square meters. In 2019, Suning Logistics focused on the construction of advanced infrastructure network and the openness of warehouse delivery business to enhance socialized and customized supply chain system through advantages of low-cost, real-time and diverse economic delivery capabilities.
The formation and full integration of all-scenario retail are injecting new motivation into Suning’s advance development. Under the huge pressure of pandemic, the innovative exploration of Suning.com in the full-scenarios operation has achieved outstanding results. Suning.com focused on user’s socialization, community and content-oriented consumption features, constantly tried innovative business formats such as social e-commerce, home-delivery business, and live streaming to improve operation performance from multi-points, demonstrating extremely strong pressure-bearing capacity and synergy of multiple business segments.
