Retailing, Franchising, and Consumerism Business Intelligence in China

China's Suning Introduces More Japanese Products

Following its acquisition of the Japanese electronics retailer Laox, the Chinese electronics retailer Suning has announced plans to introduce more Japanese-made products through its outlets, starting in Shanghai.

In July 2009, Suning acquired a 27.36% stake in Laox, making it the largest shareholder of the Japanese company. Following, Suning set up a new Tokyo region, its 35th region, and appointed Luo Yiwen, the president of Laox, to the additional role of regional general manager.

For the development of this new region Suning has also set up a special department in its headquarters, with responsibility for various qualification approvals, including import and export, market research, as well as the establishment of a supply chain relationship. In 2010 it is expected that two companies will start to merge their product line.

Zhang Jindong, the chairman of Suning, told local media that one of Suning's important reasons for acquiring Laox was to set up a platform for collaboration on products. On one hand, it plans to introduce Japan's 3C, animation, video, and musical-instrument products to enrich the offerings of its stores in China; on the other hand, it will export Chinese-made products to take full advantage of China's manufacturing industry.

However, Zhang said that China is still Suning's main market and the company will try to increase its market share in the country even further. He revealed that Suning will build a fourth-generation logistics base with an area of 250 mu in Shanghai and will add 15 to 20 new stores in this region, increasing the number of Suning retail outlets in the city to 80.

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