Check our previous articles about cross-border e-commerce on Tmall, JD, Kaola, VIP.com…

 

VIII. GUIDE TO SELL CROSS-BORDER ON SUNING GLOBAL

 

1. About Suning.com

Suning Commerce Group, with its website Suning.com, known as one of the largest privately owned retailers in China, headquartered in Nanjing, Jiangsu.

Starting out as a traditional retailer focusing on consumer electronics products, the company now owns 11,064 offline brick-and-mortar stores in mainland China, Hong Kong and Japan, covering a diversity of store members including  Suning Retail Cloud Franchise Stores, SuFresh (fresh food supermarkets), Suning Convenience Stores and Redbaby (maternal and child supplies stores).

Suning’s e-commerce platform, Suning.com ranks among the top three Chinese B2C companies, with more than 3 million SKUs, on par with other big names such as Tmall and JD.com. Suning.com has been successful in complementing the shopping experience of consumers both at store and online, making it the leading smart retailer in China.

Suning.com sells a wide range of electronics products, home

appliances, 3C products, books, household commodities, cosmetics and baby care products.

In 2018, the online platform’s sales revenue saw a strong growth of 64.45%, far beyond the industry average, with a sales volume of RMB 208.354 billion. The number of registered membership users reached 407 million.

2. About Suning Global

Suning Global (g.suning.com) is the cross-border e-commerce online mall of Suning, launched in 2014.

It currently features about 300 foreign shopfronts and offers integrated logistics (4 aviation hubs, 12 automatic picking centres and 660 urban distribution centres), store operator and financial support services.

Their most popular product categories are electrical appliances and maternity & baby.

It uses its own online payment escrow service, Yi-Pay, to complete transactions in RMB or foreign currency.

3. Entry process

As a hybrid platform, Suning Global has two cooperation models:

  • Entry Model – Suning provides store operator, logistics and warehousing services
  • Procurement Model – Suning purchases from overseas partners directly

On Suning Global, although not required, it is strongly advised to use a reliable Third Partner.

4. Requirements for merchants

Basic requirements

  • The oversea corporate entity shall have oversea retail qualification with oversea registered trademark
  • 100% overseas merchants, 100% overseas commodities mailed from abroad or bonded areas
  • Brand Holder/ Brand Authorization Certificate/ Purchasing Receipts

Preferred requirements

  • At least 2 years’ online operation experience in oversea goods trading and a professional, independent online operation team
  • Oversea well-known B2C and oversea well-known brands are preferred
  • Following categories are preferred: mother & baby products, clothes, cosmetics, health products, footwear, bags and suitcases, food
  • Members of T-mall HK, JD Worldwide and others overseas B2C websites are preferred

5. Cost of investment

Quality guarantee deposit: 10000 USD

Platform service fee: 5000-10 000 USD per year depending on different categories
Annual fee return policy: 50%-100% if target sales are achieved

Commission fee: 2% – 6%, based on the category of the product sold. More details could be found here.

This is quite similar to Tmall Global.

6. Store types and related requirements

There are 3 main types of stores that you can open on Suning Global:

  • Overseas Official Flagship Store: are the stores of Suning Global with own brands (trademark of R or TM)

Categories of official flagship stores are as follow:

  1. Flagship stores operating own brands with the holder of (brand) commercial right as main body
  2. Flagship stores operating several own brands with one and only holder (invited by Suning.com only)
  3. Suning self-supported stores
  • Overseas Flagship Store: are the stores of Suning Global with own brands (trademark of R or TM) or exclusive authorization.

Categories of flagship stores are as follow:

  1. Brand flagship stores (invited by Suning.com only) opened by owners of brands of supermarkets (service trademark).
  2. Agents operating one or several brands, should provide authorization document.
  3. The main body must be brand (trademark) owner or holders with Suning Global flagship store exclusive authorization document.
  • Overseas Franchise Stores: are the stores of Suning Global with own brands (trademark of R or TM) or exclusive authorization.

Categories of franchise stores are as follow:

  1. Franchise stores operate one brand but without flagship store authorization.
  2. Franchise stores operate several brands but without flagship store authorization.
  3. Franchise stores operate several brands as well as own brand
  4. Franchise stores operate two or more than two brands
  5. Franchise stores operate two or more than two own brands (not invited by Suning.com)

7. Application process

Step 1: Application of enterprise account

Step 2:  Negotiate and sign the contract

Step 3: Pay related fees

Step 4: Open shop successfully

The application process looks similar among all platforms. However, to be chosen as a seller as well as to set up a store successfully require much more than that.

We suggest you work with third-party parties who are familiar with cross-border e-commerce and Suning Global to help with the set-up.

 8. Conclusion

Similar to Tmall Global or JD Worldwide, selling on Suning is advantages in that you have high user traffic and convenient sales support for your customers.

However, there are high entry requirements and high costs of investment to start. Furthermore, the competition can be harsh since all well-known international brands attempt to establish themselves in prestigious e-commerce platforms.

 

 

 

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