Alibaba To Buy 19.99% of Chinese CE Retailer Suning

Chinese e-commerce giant Alibaba will spend $4.6 billion to buy 19.99 percent of Suning, one of the largest CE chains in China, the companies said Monday in a joint announcement. Their “new alliance brings forth a new commerce model that fully integrates online and offline” sales, they said. Through their collaboration, Alibaba and Suning “will be able to provide holistic and more convenient shopping experiences, as well as superior customer service to users looking to purchase online and through mobile devices,” they said. The deal includes plans for Suning to open a “flagship store” for CE goods and home appliances on Alibaba’s Tmall.com platform, they said. Alibaba also will benefit from the deal by tapping into Suning’s vast logistical and supply chain network with coverage in 90 percent of China, they said.