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Dalian Wanda Commercial Properties and Suning Commerce Group, sign a major partnership agreement on Sept 6. [Photo provided to China Daily] |
Two of China's largest commercial giants, Dalian Wanda Commercial Properties and Suning Commerce Group, signed a major partnership agreement on Sept 6.
According to the agreement, Suning Commerce will open its branded stores at Wanda Plaza properties that have opened or are about to open. The first 40 projects are already underway. After 2016 the two companies will collaborate further according to their needs.
Wanda Commercial is the world's largest real estate developer and operates Wanda Plaza, China's largest offline shopping center chain.
By the end of 2015 Wanda Commercial will have 135 Wanda Plaza projects across China with two billion customer visits per year, and the figure is expected to reach 500 Plazas with 10 billion customer visits per year by 2020.
Suning Commerce has over 1,600 physical stores in China, and its online retail site ranks among the top three Business to Customer (B2C) operators in the country. Based on its online and offline supply advantages, Suning employs the Online to Offline (O2O) business model and has complete chains and layout of products.
The partnership allows both parties to benefit from one another's advantages.
Wanda Group may enjoy a rising number of customers as Suning branded stores will increase the products available at Wanda Plazas. In addition, Wanda will integrate online and offline resources and develop its online business. Wanda Commercial has revamped Wanda Department Stores to pave the way for Suning, whose stores will open in Wanda Plazas soon.
Suning also benefits. Since online consumption can't meet demand for quality and personalization, offline experience is also a must. By integrating online and offline platforms, Suning can offer more products and innovate its business model. The cooperation with Wanda will set a new model for retail sales.
"Suning spent six years strengthening its supply chains, distribution and after-sales service," said Zhang Jindong, chairman of Suning Commerce.
Wang Jianlin, chairman and CEO of Wanda Group, said this partnership enables Wanda and Suning to complement one another. Both benefit, and revenues and profits are expected to grow.
