(Yicai Global) March 21 -- E-commerce colossus Suning.Com Co. announced its decision today to establish a fast-moving consumer goods (FMCG) business division and plans to develop over 20 FMCG unicorns by setting up a fund in the next three years.
Suning, based in China's southeastern Jiangsu province held a news conference to release its FMCG strategies today in Chengdu, the capital of southwestern China's Sichuan province. This business group integrates multiple brands, including Suning's online supermarket, the maternity and child e-commerce platform Red Baby, the offline supermarket Su Fresh, as well as Suning community shops, Shanghai Securities News reported. The new FMCG platform will offer preferential policies like exemption from annual fees to cooperating enterprises.
Suning is endowing a CNY100-million investment fund to back promising emerging brands across the FMCG sector, planning to develop over 20 unicorns and over 100 CNY10-million (USD16 million)sales brands in the next three years, Bian Nong, Suning vice president, said at the conference.
Suning's internal incubator will select promising brands via industrial and user studies, Bian said. Based on these brands' development demands, Suning will offer them channels and service resources from the group. "Via Suning's systems, a brand with innovation capability will only take a year to achieve a channel expansion that would [otherwise] have taken five years," Bian said.
Suning has accomplished its organization's structural adjustment following its new-retail reform, setting up the four major business groups of home appliances, FMCG, intelligent digital 3C, and home supplies, per the Shanghai Securities News report.