Alibaba to Buy Stake in Chinese Retailer Suning

August 16, 2015 Natalie Williams

Alibaba, China's eCommerce giant, will be buying a 20% stake in electronics retailer Suning, according to a recent New York Times article. Alibaba will pay about $4.6 billion dollars for the company stake.

Suning is a Chinese retailer that sells consumer electronics and has been overpowered by online competition in recent years.

GPI_Alibaba Purchases Stake_home

Daniel Zhang, Alibaba's chief executive, says they will use Suning's retail outlets to sell groceries and other items that Chinese consumers can access immediately, which is outside Suning's core offerings.

According to the article, "Alibaba said the move was another step toward securing its distribution network across China."

Alibaba's extreme growth has outpaced the China's delivery infrastructure system. The move to purchase stake of Suning was a strategic move to have access to Suning's sophisticated logistical operations that stretch across China.

Alibaba's competitors, Tencent and Baidu, have also promised similar investments plans.

To read the entire New York Times article, see: Alibaba to Buy 20% Stake in Electronics Retailer Suning


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About the Author

Natalie Williams

Natalie was born and raised in Montana where she graduated from The University of Montana with a degree in Business Administration. Her international experience includes two summer programs, one at The European Business School in Germany and the other at The University of Brescia in Italy. She studied a variety of global business subjects including international business, trade, culture and language. Key projects for her undergrad studies included meeting with executives from large corporations such as Lufthansa, Opel and The European Central Bank as well as working with the design team on the marketing plan for the 2015 World Fair in Milan, Italy. She has a range of global event management experience including organization of the Annual Mansfield Conference on the Middle East and the China Town Hall meeting series. Her hobbies include beading, yoga, cooking, reading, being outdoors and traveling.

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