Study On Overseas Markets Expansion Of SUNING COMMERCE

In recent years,with the development of China's economy and retail industry,expanding overseas market is an important way for retails to breakthrough geographical restrictions to a higher level,it's also an inevitable trend in retail development history.SUNING COMMERCE GROUP CO.,LTD.is not only the largest household electrical appliance retailer,but also a representative of chain retailing enterprises.The business of SUNING for many years brought a very lucrative income;its operating revenue in 2015 was 135.676 billion yuan.But in recent years,with the development of e-commerce,electronic business platform emerged in the Internet,and the online sales crowded out physical distribution,which caused the off-line sales of SUNING under a downward trend.The company's operating situation became more sever after 2014.SUNING 's annual total revenues was 108.925 billion yuan in the year of 2014,only rose 3.45% year-on-year,far below the growth rate of 20% in2011.That means that the growth rate of SUNING is slowing down gradually,however,its competitor JD was growing rapidly with 107% in the same year,and also GOME increased with the growth rate of 7%;It is noteworthy that,removing the part of the store property income for some stores capital operation,SUNING 's operating profit in 2014 lost 1.459 billion yuan actually;but its online B2 C sales proportion was very small,only 1.9%,at the same time,the on-line B2 C sales proportion of TMALL was 60.4%,JD Mall's on-line B2 C sales proportion was 19.5%.Although SUNING 's business situation has improved in 2015,but by facing the situation that the domestic household appliance industry became more and more saturated,competitive pressures became bigger,the traditional household appliance industy transited,labor and stores costs rose sharply,SUNING Appliance should go abroad to expand overseas markets.As early as 2009,SUNING acquired Laox,the Japanese electronics retail chain,Laox 's revenues in 2015 was 92.6 billion yen(about 5.4 billion yuan),increased180% year-on-year;its operating profit was 8.5 billion yen(about 490 million yuan),increased 490% year-on-year;net profit was 80 billion yen(about 460 million yuan),increased 650% year-on-year,this consequence set a record of the past two decades.Obviously,expanding Japanese market was a very meaningful attempt for SUNING.This paper analyzes the opportunities and challenges of overseas markets which brings for SUNING Appliance,and it also analyze the internal strengths and weaknesses of SUNING.It segments overseas markets into five parts which contains the Asian market,the Arab middle east market,the African market,the European market,and the North America market.This paper also analyzes economic development in each market.Combined with Chinese retail enterprises international experience,this paper analyzes retail industry potential and features.It made recommendations for SUNING in four areas: choose the market near mother country,choose the market similar to our market in culture,choose the market which in the same level of economic development compared to mother country,improve the electricity supplier channels of distribution.