China’s largest electronics vendor Suning Appliance (002024.SH) will inject US$3.52 billion (RMB22 billion) into its logistics network in the next two years to support its online retail business, Bloomberg reported. The steps are being taken to reduce the company’s reliance on its core electronics sales, Suning Vice Chairman Sun Weimin said Thursday. The firm is expanding its product range to attract more online customers, following a 29% fall in profit for the first half of 2011. Suning fell on a sluggish Chinese economy and aggressive price competition with rivals last year.
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