Massive 2017 for Suning Holding Group with 31 billion euros in sales, becoming second riches private company in China
Revenues and profit increased in 2017 for Suning.com, the main business of Suning Holdings Group, the owner of Inter. The company of Zhang Jindong, which in recent months changed its name from Suning Commerce Group to Suning.com, announced that it has record omni-channel sales of 243.2 billion RMB (around 31.2 billion euros) in 2017, with an annual growth of almost 30% and a net profit of 540 billion RMB (about 540 million euros), an increase of 497.66%.
The net profit for Suning remains strong: in 2017, it was 925 million RMB (around 130 million euros), up by 236% compared to 2016. Moreover, in 2017, Suning Holdings became the second richest private company in China with total revenues at 412.95 billion RMB, equivalent to 53 billion Euros. Suning Holdings contains companies in real estate, media and entertainment sectors, investments, sports and financial services.
“These numbers represent the best performance by the company since it adopted the O2O market model in 2009 with rapid and continuous growth in sales and net profit margins in both online and offline. As of December 31, 2017, Suning has a total of 3867 physical stores occupying a total area of 5.095 million square meters. It should be noted that through the application of Internet technology, data-driven management and strict quality control, sales grew 4.17 percent in stores in mainland China, with operating efficiency increased to 34.90% at Suning stores for direct sales.”
The press release continues: “By the end of 2018, thanks to strategic collaboration with 300 national and foreign real estate promoters such as Wanda, Evergrande and Sunac, Suning estimates to add 5,000 more stores to its rapid growing portfolio, connecting its online presence as well as covering different consumption scenarios between Suning Cloud Store, Direct-sale Store, SuFresh (fresh food supermarkets and connivence stores), Redbaby (stores for mothers and children), Suning Sports and Suning Cinema. Over a period of three years, 15 thousand Internet related shops will open for a total of 20 thousand activities by 2020.”
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Source: Calcio e Finanza