Suning Commerce Group has been expanding quickly past being only an electronics retailer.
The company announced that its new structure includes eight independent subsidiaries, which include Redbaby, PPTV, Manzuo.com, and newly-established logistics, finance, and telecommunications companies. Suning will authorize more decision-making power to these companies in regards to operations and management.
An insider from Suning revealed that the concept of the eight independent subsidiaries is in line with the requirements raised by Zhang Jindong, chairman of Suning. Zhang previously said that "product determines target and project determines organization". Suning plans to break organizational barriers using project management and realize major breakthroughs in logistics, finance, telecommunications, and maternal and baby sectors.
For physical products, the maternal and baby category will be Suning's focus in 2014. Redbaby will open eight physical stores in 2014 and will establish a nationwide supply chain via self-operation and open platforms.
For virtual products, Suning will depend on PPTV, Manzuo.com and its telecommunications subsidiary to promote its expansion in video content, lifestyle services, and telecom businesses.
In addition, Suning established a new logistics and finance companies to develop service products. Details on those areas will be revealed by the company soon.