A mid-year performance preview report just released has revealed Nanjing-based Suning to have recorded record growth rates in its online business in 2020, driven primarily by the lockdowns brought on by the coronavirus.
Released on 1 August, the report states Suning.com’s sales’ volume reached ¥194.155 billion for the period between January and June, 2020, which was a year-on-year increase of 5.4 percent. Online sales volume grew significantly by 20.19 percent year-on-year and now accounts for 69.43 percent of total business.
According to a press release by Suning Holdings Group, the Nanjing behemoth leveraged both its online and offline capabilities, pivoted its business strategy and focused on improving business quality and efficiency, all whilst improving profitability. Thanks to a swift response, Suning.com achieved a marked improvement in its operating income, which increased 76.74 percent year-on-year to ¥118.24 billion.
The press release refers to the financial growth the company has experienced during one of biggest calamities humanity has ever faced as “outstanding”.
The offline retail environment faced immense pressure in the wake of the pandemic and was one of the key industries affected in the first half of 2020. However, the stay-at-home economy drove a surge in online sales, with data revealing that online sales in China increased by 7.3 percent year-on-year.
Suning focused on ensuring seamless operation across online platforms, while also promoting sales for offline stores through digital means, using community marketing, off-site sales and home delivery.
As a result, Suning.com recorded a 20.19 percent increase in online sales year-on-year; and in the second quarter alone, online sales saw the highest surge in six quarters, with a year-on-year increase of 27.11 percent.
The firm’s core partnership with Carrefour China also yielded strong results. Between January and June, sales volume for general merchandise increased by 106.7 percent year-on-year. Carrefour’s online operation capabilities also improved significantly in the first half of the year, with the company seeing marked growth in its door-to-door business.
Up also is the proportion of traffic from Suning.com’s ecosystem. As of June 30, Suning.com had 602 million registered members.
Further to this, Suning.com accelerated its expansion plans and strategically upgraded its retail service providers. In addition to actively responding to the challenges of the pandemic, Suning.com harnessed the opportunity to fast-track the expansion of its retail infrastructure and accelerate its ambitions to shift from being a retailer to a retail service provider.
One of these retail service providers is the network of small shops that have sprung up, located often outside or even inside residential compounds.
Providing a range of consumer convenience goods, Suning Little Stores also accept online orders for groceries which are then collected in person, a service which has made an additional significant contribution towards Suning’s impressive growth figures for the first half of 2020.
