According to Fan Zhijun, vice president of Chinese electronics retailer Suning, Suning will open Beijing's first major appliances discount outlet store at the Lize Bridge, West 3rd Ring of Beijing on August 30, 2008.
Suning's new discount store covers a business area of 8,000 square meters and is aimed at expanding its business model into low-priced discount electronics. With various Chinese and international brands, including Siemens, Samsung, Sony, LG, Midea and Lenovo, the store is expected to achieve annual revenue of CNY500 million to CNY700 million. The discount store will sell sample products and products that are damaged while delivering, but still can meet normal use, along with off-season products. These products will be sold at least 20% off and there will be no limitation on their discount scales.
Most of the consumers care more about the practicability and the energy-saving functions of appliances, said Fan at a press conference. The prices of all the discount products will be clearly marked with the reasons for the discount. For some sample products, their displayed time will also be marked on the tags. In addition, Suning promises to offer the same after-sales service to discount products as that of normal products.
When asked about how to ensure the adequate supply of the discount store, Fan said that Suning currently owns 51 stores in Beijing and the number of sample products for each store is about 5,000 to 10,000. Because of the application of new technologies, the average displayed period of these sample products has been shortened from one year to three to five months. These sample products will meet the demand of the discount store and ensure a smooth supply chain system.