Access Asia’s Company Profile series of reports are meant to provide independent analysis on Chinese companies either in the news, or on the M&A radar. All company profiles contain contact details, company background and history, key activities in China, a SWOT analysis and key financial figures. We also include any key company events that have made the news, new product releases and branding activity.
Suning Appliance
As the second largest retailer in China, as well as the country’s second biggest home appliances and consumer electronics retailer in 2008 in revenue terms, Suning has the potential to unseat Gome from the top spot in 2009 with its massive store opening plans for the year.
Suning is well run and is in a better financial shape than its arch rival Gome, which has suffered from focusing too much on inorganic growth through mergers and acquisitions in the past. Moreover, Suning’s top management team is solid and without major scandals, such as the one that is affecting Wong Kwong Yu, ex-chairman of Gome, who is now under investigation for suspected economic crimes.
The rural appliance rebate scheme, which provides rural consumers with a 13% rebate on selected appliances and consumer electronic products, has made it even more important for Suning and other home appliances and consumer electronics retailers to set themselves up in the rural market.
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