On March 30, Suning Investment Group was founded in Shanghai, whereupon, Suning completed the last section of the five-industry layout.
While Suning Investment is proposing the target of “developing a RMB 30-50 billion asset management scale within 3-5 years”, a huge “industry investment + fund management” layout is also emerging.
Yang Yang, Vice President of Suning Investment Group, said in the founding ceremony, “Suning will focus on ‘the technical progress and consumption upgrading of Chinese market’ and engage in forging ‘a first-class international industrial industry investment group’ so that such group which will become the ‘accelerator’ of Suning 3.0 Ecosystem.”
Suning establishesfounds the Investment Group, accelerating the progressecological progress of 3.0 ecosystem
Although Suning Investment Group was just founded, Suning is by no means a new starter in the investment area. Hong Kong Suning Citicall Appliance Limited, Laox of Japan, Redbaby, PPTV, Jiangsu Suning Football Club, Nubia ……a long list of company names, which are all part of external investment of Suning in recent years.
By accelerating industryindustrial layout centered on main businesses, Suning has finished the construction of an all-channel and all-category internet retail platform through a series of investments, enabling the upgrading of chain retail mode of 1.0 era into 2.0 platform mode, and also strengthened the supply chain, logistics, financial services, and other retail CPU capabilities.
Now in the 3.0 era, Suning Ecosystem is also confronted with new challenges in layout. On the one hand, the construction of the industry ecosystem cannot be finished simply by relying on enterprises; on the other hand, in the mobile internet eartimes, changes of users’to consumption habits of users and the cross-industry integration of enterprises also make the competition in enterprise ecology much fiercer.
If the investment in the first two stages is centered on retail, then a larger platform of industrial investment and fund management is required for the layout in real estate, financial holdings, media & entertainment and other areas in the 3.0 era. the layout of Suning in 3.0 era in real estate, financial control, cultural creation and other areas must need a larger platform for industry investment and fund management platform. Everything is connected and cross-industry development of enterprises happens frequently, under which background Suning Investment Group is founded at the right moment.
Yang Yang said that in order to further strengthen the ecosystem of Suning and forge Suning Investment into one of the main businesses, effective integration of resources of the open platforms will be made through continuous investment, the core capability of Suning Ecosystem will be continuously strengthened and the enterprises in the ecosystem will be fed so that Suning Investment becomeswill become the “accelerator” for the evolution of Suning 3.0 ecosystem.
The investment layout of Suning
Which areas will the newly founded Suning Investment Group operate in? Actually, from the beginning of preparation in the fourth quarter of last year to the official formationfoundation on March 30, Suning Investment Group had made several investments during team construction, from which some signs may be found.
These investment projects include CIBN holding the internet broadcasting and control license, Jiangsu Suning Football Club, champion of Chinese FA Cup, Nubia, best at photographing among smart phones, OTT and the Internet TV operation enterprise YSTen, the production enterprise Orange Image that created outstanding content of The Breakup Guru and the Devil and Angel.
Looking back on the investment layout of Suning, it can be found that, different from the previous Redbaby, Hong Kong Suning Citicall Appliance Limited and Laox of Japan that are centered on retail investment, the current investment of Suning tends to be diversified, and extends toinvolving TMT, smart hardware, internet TV, football sports, movie production film and video creation and other industries.
As Yang Yang said, “the investment targettheme of Suning is closely linked with the business evolvement of businesses of Suning Group, and Suning will focus on technical progress and consumption upgrading of Chinese market; in order to provide healthy and , happy and high-quality life for users, Suning will pay attention to enterprises that are able to create new consumption scenes, improve user consumption experience and provide high-quality consumption contents through industryial investment and fund management”.
In summary, Suning sets two future investment directions, namely,: one is technical progress i.e. smart terminal enterprises like Nubia; the other is consumption upgrading i.e. dividing investment areas from the aspects of scene, experience and content, such as Orange Image of which thewhose movie and TV content production is rightly the attraction.
Founding four thematic funds, reaching a scale of RMB 50 billion within 5 years
As the constructor and promoter of the large industry ecology of Suning, Suning Investment Group has also established several thematic investment funds in addition to assisting in industry investment.
Suning Rundong Fund has a scale of RMB 5 billion and mainly invests in TMT, culture and entertainment, retail, financial services and health. Suning Jinshi Fund mainly invests in stores, logistics, IDC and other retail infrastructure. Youth Creation Fund is mainly targeted at college students and young pioneering groups, incubates early potential projects by integrating resources and establishing the “Venture Camp”, and invests mainly in smart hardware, cultural& entertainment, electric competition, quadratic element and other novel creations.
In addition to the aforesaid three funds, Suning Investment Group will also jointly establish culture & sports fund and consumption fund with partners with the scale both at whose scale is relatively about RMB 2 billion. The culture fund invests mainly in content and creation sectors and the consumption fund is focused on the investment into early-stage consumption industry targets.
As Shanghai Office is put into operation, Suning Investment Group has completed the assignment of team members in 5 places i.e. Shanghai, Nanjing, Beijing, Hong Kong and Silicon Valley, and USA. The industry analysis indicates that compared with other investment platforms, Suning Investment Group, relying on Suning industry ecosystem, is able to coordinate resources of five industries, facilitate the invested enterprises to directly approach to a huge number of multi-region and multi-scene users, and help the enterprises in the ecosystem to grow stronger and bigger by virtue of several funds covering the entire enterprise cycle and multi-theme industry.