--- title: "Suning's 'Smart FMCG' Revolution: Investing Hundreds of Millions in 'Smart Brands'" description: "After integrating Suning Online Supermarket, Su Xiansheng Premium Supermarket, Suning Red Kids, and Suning Xiaodian, Suning.com's FMCG business group made its first public appearance on March 21 in Chengdu, unveiling its 'Smart FMCG' strategy. Vice President Bian Nong announced plans to become China's No.1 in convenience stores and mother-and-baby sectors within three years, and to excel in fresh food. Suning will also open inclusive policies to brands and launch a 'Smart Brand' incubator." author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2018-03-21" language: "en" canonical: "https://xinjignxiao.com/en/articles/suning-s-smart-fmcg-revolution-investing-hundreds-of-millions-in-smart-b-8d2525bd/" markdown: "https://xinjignxiao.com/en/articles/suning-s-smart-fmcg-revolution-investing-hundreds-of-millions-in-smart-b-8d2525bd.md" original_source: "https://mp.weixin.qq.com/s/C4EuKuQi57cSHOw7B4k-7w" translation: "https://xinjignxiao.com/zh/articles/%E8%8B%8F%E5%AE%81%E7%9A%84-%E6%99%BA%E6%85%A7%E5%BF%AB%E6%B6%88-%E9%9D%A9%E5%91%BD-%E5%B0%86%E8%8A%B1%E6%95%B0%E4%BA%BF%E5%85%83%E6%8A%95%E8%B5%84-%E6%99%BA%E6%85%A7%E5%93%81%E7%89%8C-8d2525bd.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/suning-s-smart-fmcg-revolution-investing-hundreds-of-millions-in-smart-b-8d2525bd/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Suning's 'Smart FMCG' Revolution: Investing Hundreds of Millions in 'Smart Brands' > After integrating Suning Online Supermarket, Su Xiansheng Premium Supermarket, Suning Red Kids, and Suning Xiaodian, Suning.com's FMCG business group made its first public appearance on March 21 in Chengdu, unveiling its 'Smart FMCG' strategy. Vice President Bian Nong announced plans to become China's No.1 in convenience stores and mother-and-baby sectors within three years, and to excel in fresh food. Suning will also open inclusive policies to brands and launch a 'Smart Brand' incubator. After integrating Suning Online Supermarket, Su Xiansheng Premium Supermarket, Suning Red Kids, and Suning Xiaodian, Suning.com's FMCG business group made its first collective public appearance on March 21, holding a strategic layout conference in Chengdu. Bian Nong, Vice President of Suning Retail Group and the group's leader, unveiled Suning.com's 'Smart FMCG' strategic layout, aiming to become China's No.1 in convenience stores and mother-and-baby sectors within three years, and to achieve excellence in fresh food. Additionally, Suning will open inclusive policies to brand partners and launch a 'Smart Brand' incubator. Integrating the FMCG business group, Suning initiates a 'Smart FMCG' revolution Bian Nong, Vice President of Suning Retail Group, speaks at the conference. After in-depth research on the development trends of China's FMCG industry, Bian Nong believes that the future development of China's FMCG market will trend toward flattening, diversification, personalization, and experience. He stated, "Under the wave of smart retail, China's FMCG industry will usher in the greatest period of transformation and landscape reshaping, and a 'Smart FMCG' revolution is imminent." Based on this judgment, at the beginning of this year, Suning.com reorganized its four major business groups, and the FMCG business group led by Bian Nong is one of them. It is understood that Suning.com's FMCG business group covers supermarket and mother-and-baby categories, with channels connecting online and offline, integrating various formats such as Su Xiansheng Premium Supermarket, Suning Red Kids, and Suning Xiaodian, entering the FMCG market as a "group army." Last year, Zhang Jindong, Chairman of Suning Holdings Group, proposed the concept of "smart retail," using internet and IoT technology to sense consumption habits, predict consumption trends, guide production and manufacturing, and provide consumers with diversified and personalized products and services. At the March 21 conference, Bian Nong proposed that Suning should pursue "Smart FMCG," transforming and innovating FMCG under smart retail, and fully launching a "Smart FMCG" revolution in channels, brands, services, and experience. Suning's ambition: achieving two No.1s and one excellence in three years Suning has great ambitions in entering the FMCG market. Bian Nong stated that in the next three years, Suning aims to lead in three aspects: Suning Xiaodian will become China's No.1 O2O community convenience store, Suning Red Kids will become China's No.1 O2O mother-and-baby channel, and the online-offline O2O fresh food channel will achieve excellence. Bian Nong leads the heads of the FMCG business segments at the conference. The essence of O2O is consumption upgrade, not a simple addition of online and offline; its core value is convenience. Based on user behavior characteristics, find the scenarios where users are, and by connecting these scenarios, acquire users, giving wings to original community convenience stores through the internet. Suning Xiaodian penetrates urban CBDs and communities, targeting people within a 2-kilometer radius, offering a full range of products with FMCG and fresh food as representatives. As of early March, Suning Xiaodian has spread across the country with 89 stores. In the next three years, it will enter 246 cities, open 5,000 stores, set up 200,000 unmanned shelves, and 20,000 self-service vending machines. Suning Red Kids' full-scenario development is more mature, having launched a new second-generation store integrating eating, drinking, playing, entertainment, and shopping, with third-generation stores under development and testing. Significant innovations and upgrades have been made in store design, customer service, and scenario experience, with all offline and online business processes fully connected, including products, membership, promotions, inventory, data, and services, providing users with more convenient services. Currently, Suning Red Kids has opened nearly 60 large shopping district comprehensive stores in 26 first- and second-tier cities. In the next three years, the number of stores will exceed 1,000, and it will gradually enter Suning's direct-operated stores to achieve full coverage from first- to sixth-tier markets nationwide. In the fresh food sector, on one hand, Suning continues to strengthen its online fresh food category; after a strong alliance with Yiguo Fresh at the end of 2016, it has continuously expanded market share. On the other hand, Suning's offline premium supermarket Su Xiansheng also focuses on fresh food, combining supermarket and dining to meet multiple needs in one stop. It is understood that Suning will soon open seafood restaurants to try more business formats. To support the development of the fresh food category, at the beginning of this year, Suning's eight self-built cold chain warehouses in Beijing, Shanghai, Guangzhou, Nanjing, Wuhan, Chengdu, Xi'an, and Shenyang have been put into use. With the cold chain logistics system, over 80% of orders can be delivered within 24 hours. Additionally, users can order online, and within a 3-kilometer radius of Su Xiansheng stores, delivery can be completed within half an hour. Currently, Su Xiansheng Premium Supermarket has opened 6 stores in 5 major cities, and will open 300 more in the next three years. With smart retail solutions, Suning's 28 years of retail operation capability, and the empowerment of eight major industry concentric circles, Bian Nong believes that achieving these goals is not a fantasy. Implementing "Inclusive Policies," Suning launches "Smart Brand" incubator At this Suning.com FMCG strategic layout conference, executives from over 200 FMCG brands, including Moutai, Yanghe, Master Kong, Jiannanchun, Wuliangye, COFCO, Fulinmen, P&G, Unilever, Yili, Danone, Inoherb, Nestlé, Arawana, Mengniu, Junlebao, Luhua, Coca-Cola, Bright, Shiyue Daotian, Changshouhua, and Lay's, attended to discuss building an FMCG ecosystem with Suning. The FMCG strategic layout conference gathered industry leaders. Regarding cooperation with brands, Bian Nong also introduced Suning's new plans: inclusive policies and a "Smart Brand" incubator. In 2018, Suning.com's FMCG platform will open inclusive policies to all merchants, with all cooperating and newly入驻 merchants enjoying full exemption from annual fees. "Our commission will also benchmark against competitors, ensuring it is only lower, not higher." For merchants, Suning will also create a "Lighthouse Plan" to establish industry benchmark store models, and open incentive policies and traffic support to all merchants, truly empowering brands and merchants with platform resources. Bian Nong believes that as the ecological builder of the "Smart FMCG" channel, Suning FMCG should improve the overall level of the industry, and the most basic task is to continuously enhance the industry's ability to output brands and quality products. Therefore, Suning plans to establish an internal "Smart Brand" incubator for Suning FMCG to research the industry, study users, and screen and incubate high-quality potential brands, especially innovative ones. Based on brand development needs, it will open massive user, channel, and service resources to them. "An innovative brand, through Suning's system, may only need one year to complete its channel expansion process that would otherwise take 5 years or more." Suning's goal is to incubate more than 20 unicorn brands in the FMCG industry and create more than 100 brands with sales exceeding 100 million yuan within the next three years. To this end, Suning plans to establish a smart FMCG investment fund of several hundred million yuan to invest in excellent brands that grow within Suning's FMCG system. Bian Nong stated that focusing only on its own development is not a long-term solution; Suning FMCG will leverage the group's full strength to promote the common prosperity of all FMCG brands. -END- --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671