Fashion, design and convenience goods of the premium segment are the target of Suning. The Chinese group acquired Inter football club and announced that it has allocated 1.3 billion euros to be spent over the next three years in a purchase campaign which would supply the e-commerce platform and the hundreds of stores that will open in China.
MILAN, March 15 (Class Editori).- Suning Holdings Group, Inter's majority Chinese shareholder, owned by entrepreneur Zhang Jindong, has allocated 10 billion yuan (about 1.3 billion euros) for the purchase of products of the major European brands over the next three years. Sales will pivot on the Milan-based office, which opened last year to intensify the sourcing network of the company.
Suning serves as a privileged access door for made in Italy brands, particularly in the fashion, design and convenience goods sectors, to the Chinese market, which consumption rate is still growing due to the increase in purchases of premium brands and the opening of new stores in which to live an advanced shopping experience.
In 2018 the market value of premium products sold on Suning.com, including Versace Home, Sicis, TechnoGym, Furla, Moleskine and San Benedetto, grew by 150%. However the group is also investing heavily in physical retail, as demonstrated by the recent acquisition of Wanda Department Store, with which it formed the Department Store Group of Suning.com.
In addition to this latest acquisition, Suning has announced plans to open about 300 Jiwu (Ultimate Creation) stores in China in the next three years. The plan entails the opening of 50 medium-large flagship stores and 10 Suning Plaza large malls located in the most prominent Chinese cities.
The main activity of the company in Italy is focused on the management of Inter. According to market rumors, Suning is dealing with the transfer of a minority share of the football club's capital (31.05%) owned by Erick Thohir in the LionRock Capital fund, based in Hong Kong. Founded in 2011 by the Sino-American businessman Daniel Kar Keung Tseung, the private equity fund mainly invests in the consumer sector, e-commerce, medical-health-aesthetic sector, in food and in sport-related products and services. LionRock Capital already owns a stake in Suning Sports, the sports branch of Zhang Jindong's company.
The price for the acquisition of 31.05% of Inter is expected to be around 150 million euros. The new partner could play a fundamental role also in the plan to build a new stadium in Milan.
(Source:Class Editori)
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