Suning, China’s largest electronics retailers hold a special place in the Chinese consumers’ hearts. There are several reasons behind the success and one of the major is the first mover advantage. Suning is the first ever home appliances retailer chain in China that allowed the consumers to visit one store, check out all their electronics needs in their life and purchase it under one roof without the need for shop hopping. This not only made the shopping very convenient but also enhanced the whole experience of the consumer.
Suning’s Advantage Over its Competitors
Suning is the first home appliance retailer in China and that gave it a first mover advantage. It is also the largest seller of smart home appliances, which attracts the newer generation. The traditional home appliances cannot be connected to the internet, unlike the smart home appliances. This gives the newer generation of consumers to get their appliances connected to the internet and voila! The world is on the internet. People nowadays need everything connected to the internet for easy access from anywhere they want.
In a survey carried out by the Market Trends Research Foundation in India, it was found out that more than 70% of the new consumers who are willing to set up their homes are opting for smart home appliances instead of the traditional ones. Similar trends have been found to be true in the case of China as well. In China, the population is more tech-savvy and the availability of high-speed internet in most parts of the country make them a bigger market at the moment.
This gives us a clear picture of the demand in the market and also throws light upon the supply that has been maintained by Suning making them the best in China. They also have the most channels in China both online and offline. The best part is that almost all the brands of home appliances and consumer electronics are available here, which are cheap compared to any other channel. The wide variety of options to choose from and the affordable prices makes the store the people’s favourite.
Indian Consumer Electronics and Home Appliances Market
India is probably the second largest market after China in terms of the number of people and also the rate of the growing economy that already crossed several billions of dollars. A similar revolution happened in the retail sector with the advent of the extremely popular Big Bazars in the country. Future Group’s Big Bazar was the one stop shop for most of the products a person needs in her/his life starting from the food to fashion, technology to stationary and many more. However, the technology-specific retail chains started popping up in the country more recently with the big players such as Tata’s Croma, Reliance’s Reliance Digital and standalone players such as Vijay Sales. These electronic retail outlets gave the Indian consumers a chance to explore the technologies around the market under one roof. However, the scale comparison with a typical Suning store is almost immeasurable.
Suning vs Croma and Reliance Digital
The Suning store that the writer visited in Beijing was way bigger than even the largest of the Cromas or the Reliance Digitals in India. This shows the growth potential in India. The Indian consumer market is currently the fastest growing in the world and currently, it seems that the market has less to offer to attract consumers. If something like a Suning opens in India, it will be grabbed with open hearts. This was the case with the IKEA store in Hyderabad, where there was a stampede due to the rush in and outside of the store. The reason was that the Indian consumers were well aware of the globally iconic brand of IKEA but never experienced their products. The moment, the Indian consumers are let loose with the global brands; both the parties reap the benefits especially in the rising Indian market.
India’s Market for Chinese Companies
The economic policies of the country have also been favourable to the business community in the past half-decade and this has shown in the overall growth of the economy as well. Integration of the Chinese brands with the Indian market will be great to watch and will also be very good for both, the companies and the people.