What is Suning's profit model?

An omni-channel business model that integrates online and offline and an open platform for both online and offline.

On October 28, 2013, Suning Yuncheng, which pioneered the retail industry's online-offline fusion model, jointly invested $420 million with Hony Capital to acquire nearly 74% of the shares of PPTV Gathering. Among them, Suning contributed 250 million U.S. dollars, accounting for 44 percent of the shares, becoming the largest shareholder.

"One body, two wings" of the "Internet roadmap", Suning Yuncheng Chairman Zhang Near East more than once in public to all walks of life to explain how Suning Internet retail as the main body, to create online and offline integration of omni-channel business model and online and offline The open platform.

The outbreak of mobile Internet and home Internet has broken the concept and operation mode of the traditional Internet, and in the opinion of Dr. Tao Gang, CEO of Polymedia, a new Internet economic model of on-line and off-line integration is being born. The competition to seize the multi-screen entrance of the Internet such as cell phones, tablet PCs and Internet home TVs has already started.

At the conference, Suning Yuncheng said that the cooperation between the two sides will focus on the "terminal and cloud, users and brands, media and content" three aspects. Specifically, according to the plan, in the fourth quarter of this year, Suning's Internet-enabled stores - "cloud store" construction has been launched. The idea of opening stores to consumers' pockets and living rooms will have a greater intersection with PPTV Gathering.

In the initial concept of strategic cooperation, PPTV Gathering will be in its own "box" products, that is, PPBOX implanted in Suning's e-commerce services, the user's digital TV access to the PPBOX, through the TV access to the Suning E-shopping to buy a variety of products. Suning will also cooperate with major TV manufacturers to pre-install PPTV Gathering's video service in digital TVs and promote PPTV Gathering's video content.

People's Daily Online--How Suning builds an omnichannel business model