The Dia Group, a Spanish multinational retailer, recently announced that it had inked a deal with Suning.com, China's e-commerce giant to sell its 100 percent of its stakes in Dia's business in China.
Analysts saw it as a significant step for Suning to ramp up its New Retail strategy by fusing together its online and offline retail services. Suning has been investing heavily in convenience shops around the country.
Suning opened up 133 new convenience shops in 43 cities in China at the end of March. The convenience shops were an attempt for Suning to develop its O2O (Online to Offline) retail chains in the communities where it has operations.
The Suning convenience shops deploy physical shops plus app business models, to offer consumers with FMGGs (Fast Moving Consumer Goods) and fresh food as well as its last mile delivery service in as fast as around 30 minutes, which is different from the traditional, convenience shops.
Dia China entered into the Chinese markets more than 10 years ago and owned over 300 convenient shops located in communities in central Shanghai area.
It met chills when expanding its business in China.
The acquisitions of these shops with somewhat sound operating systems would save Suning substantial time and resources while making forays into the Shanghai markets.
Moreover, Suning would leverage the Dia's supply chain to enter into the overseas markets. Dia, on the other hand, could provide customized solutions for Dia's overseas suppliers to sell their products in China.
The number of convenience chain shops in China, according to official data, has exceeded 100,000 with an aggregate sales revenue of over 130 billion yuan.
The sales revenue for convenience shops has maintained a double-digit growth rate in the past seven years in China. Furthermore, it has surpassed the growth rate of shopping malls and supermarkets.
Analysts saw it as a significant step for Suning to ramp up its New Retail strategy by fusing together its online and offline retail services. Suning has been investing heavily in convenience shops around the country.
Suning opened up 133 new convenience shops in 43 cities in China at the end of March. The convenience shops were an attempt for Suning to develop its O2O (Online to Offline) retail chains in the communities where it has operations.
The Suning convenience shops deploy physical shops plus app business models, to offer consumers with FMGGs (Fast Moving Consumer Goods) and fresh food as well as its last mile delivery service in as fast as around 30 minutes, which is different from the traditional, convenience shops.
Dia China entered into the Chinese markets more than 10 years ago and owned over 300 convenient shops located in communities in central Shanghai area.
It met chills when expanding its business in China.
The acquisitions of these shops with somewhat sound operating systems would save Suning substantial time and resources while making forays into the Shanghai markets.
Moreover, Suning would leverage the Dia's supply chain to enter into the overseas markets. Dia, on the other hand, could provide customized solutions for Dia's overseas suppliers to sell their products in China.
The number of convenience chain shops in China, according to official data, has exceeded 100,000 with an aggregate sales revenue of over 130 billion yuan.
The sales revenue for convenience shops has maintained a double-digit growth rate in the past seven years in China. Furthermore, it has surpassed the growth rate of shopping malls and supermarkets.
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