Retailing, Franchising, and Consumerism Business Intelligence in China

Suning To Open Its First Appliances Discount Outlet In Beijing

According to Fan Zhijun, vice president of Suning Appliance Co., Ltd., Suning will open its first appliances discount outlet at the Lize Bridge, West Third Ring, Beijing on August 30, 2008.

Suning's new discount store covers a business area of 8,000 square meters. Offering various Chinese and international brands, including Siemens, Samsung, Sony, LG, Midea, and Lenovo, the store is expected to achieve an annual revenue of CNY500 million to CNY700 million.

It is reported that the discount store will sell sample products and products that are damaged in transit, but are still usable, along with off-season products. These products will be sold for at least 20% off the normal price and there will be no limitation on discount prices.

Most potential customers care more about the practicability and the energy-saving function of appliances, said Fan, these customers, who are single people, individuals, or companies that do not have high expectations for the appearance of products, are the targets of Suning's discount store. The prices of all the discount products will be clearly marked with the reasons for the discount. For some sample products, their time on display will also be marked on the tags. In addition, Suning promises to offer the same after-sales service on discount products as on normal products.

When being asked about how they will ensure adequate supplies for the discount store, Fan said that Suning currently owns 51 stores in Beijing and the number of sample products for each store is about 5,000 to 10,000. Because of the application of new technologies, the average display period of these sample products has been shortened from one year to three to five months. These sample products will supply the demand of the discount store.

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