This just in:
Pioneer and Suning Conclude a Strategic Alliance Agreement for the
Home Electronics Business
A new strategy for accelerating growth in the Chinese market
Pioneer Corporation concluded a strategic alliance agreement with Suning
Appliance Co., Ltd. (hereinafter “Suning”), a major Chinese home electronics
mass retailer, on November 20, with the purpose of strengthening and expanding
the home electronics business in China, prompting this announcement. Through
this alliance, the two companies will execute a new strategy that utilizes the
strengths of both companies, and Pioneer is aiming for sales of audio visual
products over 10 billion yen in the third year through Suning’s sales channels in
China.
The main points of this alliance include: 1) to expand sales of existing audio
visual products of Pioneer by taking advantage of Suning’s sales infrastructure
and expertise in the Chinese market and strong sales channels covering major
cities all over China; and 2) to grant Suning a license to use the Pioneer brand for
domestic Chinese sales of flat-screen TVs which Suning is to develop with the
cooperation of Pioneer.
China is an extremely important market for Pioneer, but is a market with both
huge potential and intense competition as well. It is essential to efficiently solve
challenges such as geographical dispersion and distribution mechanisms in order
to accelerate business expansion.
Suning Appliance is a dominant, large-scale business group in China, with
about 900 stores in major cities in China, and it has been realizing remarkable
growth in recent years. Through this alliance, Pioneer aims to accelerate the
expansion of sales and profits in its home electronics business in the Chinese
market, by effectively utilizing Suning's strong sales channels, infrastructure and
marketing expertise.
Pioneer and Suning Conclude a Strategic Alliance Agreement for the
Home Electronics Business
A new strategy for accelerating growth in the Chinese market
Pioneer Corporation concluded a strategic alliance agreement with Suning
Appliance Co., Ltd. (hereinafter “Suning”), a major Chinese home electronics
mass retailer, on November 20, with the purpose of strengthening and expanding
the home electronics business in China, prompting this announcement. Through
this alliance, the two companies will execute a new strategy that utilizes the
strengths of both companies, and Pioneer is aiming for sales of audio visual
products over 10 billion yen in the third year through Suning’s sales channels in
China.
The main points of this alliance include: 1) to expand sales of existing audio
visual products of Pioneer by taking advantage of Suning’s sales infrastructure
and expertise in the Chinese market and strong sales channels covering major
cities all over China; and 2) to grant Suning a license to use the Pioneer brand for
domestic Chinese sales of flat-screen TVs which Suning is to develop with the
cooperation of Pioneer.
China is an extremely important market for Pioneer, but is a market with both
huge potential and intense competition as well. It is essential to efficiently solve
challenges such as geographical dispersion and distribution mechanisms in order
to accelerate business expansion.
Suning Appliance is a dominant, large-scale business group in China, with
about 900 stores in major cities in China, and it has been realizing remarkable
growth in recent years. Through this alliance, Pioneer aims to accelerate the
expansion of sales and profits in its home electronics business in the Chinese
market, by effectively utilizing Suning's strong sales channels, infrastructure and
marketing expertise.