This powerpoint discusses the omnichannel business practies of Suning, the largest consumer electronics retailer in China.

1. Suning 苏宁
Omnichannel Business
Practices
Michael Ling
2015

2. The omnichannel customer
• Customers can engage a
company through multiple
channels.
• Omnichannel is an integrated
approach that offers customers
a seamless experience.
• Customer experience should
be consistent, relevant and
personalized.
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3. Company background
• China’s largest consumer electronics retailer:
1,600 stores, 180,000 employees, and USD40
billion revenue.
• Ranked #1 in China’s Top 500 Private Enterprises.
• Suning.com ranked #4 in China’s B2C market.
• Household appliances, consumer electronics,
books, clothing and fashion accessories.
• R&D facility in the Silicon Valley; Suning bank;
international courier license.
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4. China’s e-tail market
• The world’s second largest e-tail market with 120
percent CAGR.
• In 2011, China’s e-tail market reached US120
billion and had overtaken those of Japan, the UK
and Germany.
• Over 90 percent of China’s e-tail market are
transacted over marketplaces.
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5. Chinese online consumers
• Incredibly large, diverse and heterogeneous.
• Consumers prefer a retailer that has an online
presence and a physical store.
• Consumers prefer speed and convenience in
online shopping.
• 550m mobile internet subscribers.
• Smartphones are popular.
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6. Suning’s
omnichannel
business
practices
• Integrate the online/offline channels.
• Transform the retail stores.
• Integrate the information systems.
• Gather/analyze data across channels.
• Open up the supply chain & IT platform.
• Change and align the organization.
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7. Integrate the online/offline channels
• Customers can shop online or at physical stores.
• Online and store prices are consistent.
• Multimedia kiosks in-store.
• Online customers are provided with options
offered to store customers.
• Customers can download mobile app to
smartphones.
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8. Transform the retail stores
• Continue to build new types of retail stores.
• Expo Superstores to improve shopping experience.
• Future retail is a combination of online and offline
channels.
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9. Integrate the information systems
• Online and physical stores are supported by an
integrated information system.
• Requires substantial investment.
• Strategic partnership with IBM.
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10. Gather & analyze data across channels
• Collect, monitor and respond to customer
interaction data in real-time.
• Use technologies to keep track of customer
traffic flow in-store.
• Use data to build customer insights.
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11. Open up the supply chain & IT system
• Open up supply chain, distribution and logistics
networks to suppliers.
• Allow suppliers to access ERP, CRM and B2B e-
commerce platform.
• Centralize procurement at group level.
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12. Change & align the organization
• Change organization structure and culture.
• China’s “Wal-Mart and Amazon”.
• Online and offline channel business units should
not be “silos”.
• Online and physical store teams are collocated.
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13. What are the
lessons
learned?
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