Suning showcases O2O high-end product growth in China

By Natasha Spencer

- Last updated on GMT

Suning 8.18 shopping spree

Related tags China

As Chinese consumers opt for high-quality items, Suning's 2017 8.18 shopping spree achieves online sales growth of 263% compared with 2016.

Suning shopping spree

In August, the China-based seller hosted its annual shopping spree to promote both digital and brick-and-mortar shopping platforms.

Taking place between 1st-18th August, this year's 8.18 Shopping Festival has seen increasing interest from worldwide names following its debut in 2014. As such, the Chinese retail space is proving a competitive environment for international names.

Throughout various leading industries in China, including the cosmetics and personal care segments, buyers are choosing prestige items that reflect high-quality production and perceived efficacy.

Suning Commerce Group is the newly-created Fortune Global 500 company, owned by Chinese retailer, Suning Holdings Group.

A year of growth

Suning’s online and offline sales have risen 263% and 107%, respectively, compared to sales in 2016. Current product launches, branding and marketing promotions are resonating highly with Chinese consumers as same-day delivery completion rates reach 96.5%.  

Commercial enterprise Suning achieved revenues of $51.27 bn (€43.5 bn) in 2016, with the mission of "leading the industrial advancement in creating a higher quality of life for all"​.

Suning’s domestic and international retail channels include almost 4,000 self-operated physical stores, along with its e-commerce platform The online space is also a top three Chinese B2C platform with 500 million users at present.

O2O concept

Suning's 8.18 shopping spree is an online-to-offline (O2O) sales event that encourages digital users to make purchases and engage with brands through their e-commerce sites and physical stores.

Suning has adopted a 'Smart Retail' model that integrates online and offline marketing methods to optimise its direct purchasing goals in both the domestic market and international commercial space.

Exclusive incentives including discounts and campaigns are hallmarks of the shopping spree, which boost interest and sales by presenting luxury items at lowered prices. Suning's annual event aims to help make high-quality products the most accessible to consumers with [the] best services, Zhang Jindong, chairman of Suning Holdings Group, iterated.

High-quality lifestyles

Health care and child care products from Australia, New Zealand, and European countries are particularly popular in China.

“Now Chinese consumers pay more attention to healthy eating habits than before and are willing to plunk down large money for authentic high-quality products,”​ Suning revealed in a recent press release.

Data from the 2017 shopping spree also reveals that female consumers were heavily interested in cosmetics and showed a considerable preference for those produced in Japan and South Korea, along with the US and Europe.

These findings reveal that “there is an upgrade in Chinese consumers' consumption level and capability”​, the press release stated.

With rising disposable incomes, Chinese consumers are concentrating on implementing a “middle-class lifestyle by focusing on things that can improve their life quality”.

Companies recognise the need to keep up with relevant industry developments. Consumption trends such as data analysis through e-commerce platforms are, therefore, a core key performance indicator for multinational brands in China.  

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