Chinese home appliances and electronics retailer Suning has published a new ten-year strategic plan, stating that it plans to open 200 new stores annually in the next ten years and will start exploring the Southeast Asian, European, and American markets from 2014.
Jiang Yong, executive president for chain development of Suning, said that the ten-year strategic plan begins from 2011 and ends in 2020, during which time the retailer will open at least 200 new stores each year while realizing distributions in first- and second-tier markets which it has not entered. In addition, it plans to expand into China's 1,785 county-level markets with a population of over 100,000 and home appliances sales of CNY100 million for each.
Suning also shows its confidence in the development of international markets. It said it will enter the Southeast Asian market between 2014 and 2015, and will start developing the European and American markets in 2016. By 2020, Suning's operating revenue from overseas markets is expected to account for 15% of its total operating revenue.
Jiang revealed that Suning will enter the international markets by acquisitions, industry cooperation, and strategic alliances. Prior to this, Suning acquired a 27.36% stake in the Japanese home appliances chain Laox in June 2009, becoming the major shareholder of the company; and at the end of 2009, Suning invested HKD35 million in the acquisition of Hong Kong home appliances brand Citicall.
In addition, Suning set goals for its Internet retail platform which was launched in 2010. Ling Guosheng, general manager for the Internet platform, said that the platform aims at an annual compound average growth rate of 50% during the ten years. Its products will expand into other sectors, including household supplies, commodities, books, and education consulting materials.