Suning To Relocate Headquarters From Nanjing To Shanghai

Sun Weimin, CEO of Chinese electronics retailer Suning, has disclosed at a recent press conference that his company will relocate its headquarters from Nanjing to Shanghai.

Sun did not disclose the detailed schedule for the relocation, but he estimates that the company's net profit in the first half of this year may increase by 100% to 200% and the Shanghai move will help it to better face market competition and to prepare for international expansion.

However local media speculate that the real reason Suning has decided to move its headquarters to Shanghai is that an acquisition agreement has just been reached between its rival Gome and Yongle, which have, respectively, monopolized the Beijing and Shanghai electrical appliance markets.

In order to meet the challenges imposed by Gome and Yongle's cooperation, Suning will spend a part of its RMB1.2 billion in cash to develop 100 franchisers within the next nine months At the same time, it will speed up the construction of logistical bases in Nanjing, Beijing and Guangzhou in an effort to open 15 large logistics centers within 3 years.