Home appliance retailer Suning has secured an agreement with China Development Bank to receive a CNY800 million loan.
This amount will be paid to Suning in a first schedule of loans that will total CNY100 billion over five years.
Suning will use CNY650 million of the loan to set up five flagship stores in big cities, and the remaining CNY350 million will go towards the construction of three to four material delivery centers in cities like Shanghai, Guangzhou, and Shenzhen.
Sun Weimin, president of Suning says that to build the store by the company itself will help reduce the operational cost and improve the operational quality and therefore strengthen its position against competitors like Dazhong and Best Buy.