Wanda, Suning sign cooperation agreement to forge online and offline partnership

Wanda Group Chairman Wang Jianlin makes a speech at the signing ceremonySuning Commerce Group Chairman Zhang Jindong makes a speech at the signing ceremonyRepresentatives from both sides sign the contractRepresentatives from both sides take a group photo after the signing ceremony

Dalian Wanda Commercial Properties Co., Ltd (Wanda Commercial) and Suning Commerce Group Co., Ltd (Suning Commerce) signed a Joint Development Agreement in Beijing on August 31, bringing together two of China’s largest commercial giants. Under the agreement, Suning Commerce will open stores at Wanda Plaza properties and deepen cooperation with Wanda E-commerce.

According to the agreement between the two parties, Suning will run its branded stores at Wanda Plaza properties that have opened or are about to open. There are 40 projects among the first batch of their cooperation. From 2016, more cooperation will be rolled out according to the development of Wanda Plazas and Suning’s needs.

Wanda Commercial is the world’s largest real estate developer and it operates Wanda Plaza, China’s largest offline commercial platform. By 2015, Wanda Commercial will have opened 135 Wanda Plaza projects across China with a combined annual foot traffic of 2 billion, and the Company is expected to reach 500 Plazas and 10 billion annual customers by 2020. Suning Commerce is China’s largest retail business enterprise with more than 1,600 physical stores, boasting an online retail unit that ranks among the top three B2C operators in the country. Based on its advantages in online and offline operations, Suning is an industry leader in the O2O business model and offers an array of products, including home appliances, 3C (Computer, Communication and Consumer electronics), maternal goods, general merchandise, household necessities and apparel. 

The partnership is of great significance to both parties as it enables them to maximize their respective business strengths and complement mutual advantages.

For Wanda Group, Suning brand stores broaden Wanda Commercial’s product offerings and enrich customers’ experience consumption at Wanda Plaza. Therefore, the cooperation will boost Wanda Plazas’ foot traffic. As Wanda Plazas are carrying out the “Internet+”strategy to integrate their online and offline resources, the cooperation with Suning will undoubtedly accelerate the process. Wanda Commercial has revamped Wanda Department Stores to pave way for the cooperation with Suning, whose brand stores will open in Wanda Plazas soon after the signing of the contract.

For Suning, due to the continued growth in consumerism, e-commerce alone isn't enough to satisfy the multi-faceted experiential demands that customers have for quality and personalization, which is why a rich offline experience will soon become a future standard for the quality of life. By leveraging the internet and deeply integrating its online and offline platforms, Suning will be able to offer unlimited products and services on its online cloud platform. Wanda Commercial will provide property and foot traffic for Suning's physical stores, which will launch in already opened and future planned Wanda Plazas. With user experience as its core starting point, this innovative partnership will mark the beginning of a new commercial retail model.

Zhang Jindong, Chairman of Suning Commerce, said: “Suning spent six years building its commodity supply chain, logistics distribution and after-sales service-which it refers to as its “Retail CPU”. Wanda and Su Ning make their respective advantages complementary to each other, share creative ideas and resources. This partnership is not only cooperation between the China's largest commercial real estate conglomerate and its largest commercial retailer but it will also maximize the social value by leveraging each others’ shared resources.”

Wang Jianlin, Chairman and CEO of Wanda Group, commented on the agreement. “This partnership provides a significant boost to both Wanda and Suning. Integrated O2O operations are a growing trend in the business world, and shopping malls and e-commerce stores are not going to cancel each other out; on the contrary, they complement each other well and are developing side by side. Our cooperation aligns with the larger trend of our times to explore a new path for Chinese businesses to transform and upgrade themselves in the Internet age. With our ongoing push towards the ‘Internet Plus’ strategy, shopping malls are expected to achieve greater momentum and a brighter future.”