Suning plans premium stores to enhance profit
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Suning Appliance Co said yesterday it plans to open 100 premium stores in the next three years as it targets high-end consumers to boost profitability.
The first Suning Elite outlet will be launched in Shenzhen in the southern Guangdong Province on December 26, followed by 20 stores in Shanghai, Beijing, Guangzhou and Nanjing next year.
"The premium stores will boost profitability and our market share with better shopping experience and more value-added services," said Jin Ming, vice president of Suning, adding they also meet demands of high-end consumers.
These elite stores will sell high-end foreign branded electrical appliances costing more than 5,000 yuan (US$732) compared with the average price of 1,800 yuan to 2,000 yuan in regular stores, company officials said.
Suning is targeting the fast expanding white-collar consumer group for the premium stores. According to the World Luxury Council, China will surpass Japan to become the biggest luxury market before 2015, contributing to 32 percent of global luxury consumption.
"The move signaled that competition among electrical product retailers has shifted to catering to segment markets after they grew nationwide," the firm said.
The elite stores will be smaller at between 1,500 and 2,500 square meters, unlike the 4,000 square meters to as big as 20,000 square meters for the regular outlets. They will be located in core commercial centers, high-end residential areas, and large shopping malls and offer value-added services including photo printing, software installation and system upgrades.
