Suning retail cloud all in on counties and towns. Plans to complete 5,000 stores this year

09/08/2018

When retail cloud started, the monthly sales volume was only 10 million.  In the second quarter of 2018, the overall sales scale of retail clouds has exceeded 1 billion

 

At the Suning Retail Cloud Partner Conference, “Smart Retail, Enrich the Future”, Zhang Jindong, Chairman of Suning Cloud said that in the past six months, Suning has added more than 2,000 smart retail stores, including more than 1,000 retail cloud stores. These retail cloud stores cover 27 provinces and nearly 1,000 counties and towns. In July, on an average of 7.5 stores were opened daily, and the overall sales volume increased by 100 times in half a year.

Zhang Jindong said that retail cloud plans to open up to 5,000 stores at the end of this year. In 2019, it will be 8000 stores and 30 billion sales scale. At present, Suning is increasing the export of smart retail capabilities to online and offline outputs. The increase of franchisees is an important support for Suning to connect the county market.

 

Zhang Jindong also promised that Suning will complete the first round of retail cloud platform wealth-building plan within three years. In 2020, it will deploy 12,000 retail cloud stores and cultivate more than 1,000 top enterprises with annual sales of 10 million. Promote the large-scale rise of new consumer formats in the county and town market.

 

It is reported that Suning Retail cloud Store is mainly for the county and town market with a population of 2-4 million. It adopts the “franchise store direct management” mode, that is, the franchisees bear the operating costs such as rent, decoration and employee compensation of the store, but can share Suning’s brand, merchandise, sales, promotion, logistics, services and other resources. Suning will also provide guidance from product selection, procurement to marketing, promotion to service, after-sales, etc.

In addition, at the conference, a series of policies and technical tools were also announced: co-branders launched the “County and Town Product Strategy”: “First Class”, “Gold Card” and “Silver Card” plans are expected to include 12 strategic brands, 36 Buyout products and 108 key products; the joint franchisees set up the “Selection Committee” to select SKUs for the county market characteristics.

In terms of operations and services, IT tools such as retail institute and prototype management systems, as well as price protection and logistics fee reduction and other policies have also been introduced.

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