Chinese electronics and home appliances retailer Suning and the home appliances maker Hisense have signed a three-year strategic cooperation agreement for 2013-2015, under which the two parties plan to achieve sales of CNY30 billion.
According to the agreement, Hisense's various products, including color TVs, air-conditioners, refrigerators, washing machines, freezers, and mobile phones, will enter the online and offline platforms of Suning, aiming at sales of at least CNY30 billion during the three years from 2013 to 2015.
Yu Shumin, president of Hisense, revealed that during the 2013 New Year's Day holiday, the sales of Hisense products increased by nearly 60% in Suning stores. To support the strategic cooperation, the two parties also made detailed sales strategies and goals for different categories, years, and regions.
Apart from the cooperation in sales, Suning will also team with Hisense in other sectors such as consumer statistics research, product development suggestions, and joint marketing.
Suning introduced that for product planning, the two companies will improve the ratio of high-end products in the first- and second-tier markets; while in the third- and fourth-tier markets, they will jointly provide products that can meet the market demand, so as to realize scale growth. For channel cooperation, Hisense and Suning will mainly enhance their online channel cooperation and the establishment of Hisense's flagship store on Suning.com. In additions, the headquarters of the two parties will reinforce their joint marketing activities. They agreed to hold annual meetings for senior executives, marketing executives and business teams while implementing more team exchanges.