Manufacturers and merchants to seek strategic investment in cross-shareholdings Suning.doc

 PAGE \* MERGEFORMAT 3 Manufacturers and merchants to seek strategic investment in cross-shareholdings Suning In Suning Appliance Group, the tenth anniversary of the establishment of a press conference, Leroy Chairman of the Board Shao Zhang said that enterprises establish their own sales network is outdated, and even become negative assets, equity investment involved in the marketing business, it will be the approach taken by the next one to two years. Leroy into the refrigerator market, to buy a refrigerator factory, and domestic distributors Suning Appliance Group, as well as an overseas sales agent for the common equity investment; Leroy air-conditioning will be introduced Suning’s equity investments. Analysts said the home appliance manufacturers and merchants experienced sales agent to buy the operations, business custom relationship, equity investment is a higher level of cooperation. Business equity manufacturers Many appliance manufacturers have been clearly aware of the importance of specialization, especially for new market entrants. Why should manufacturers equity business? Shao Zhang said the factory manufacturing costs less than 25%, most of the costs were consumed in transaction costs, marketing costs account for the proportion of irrational, it is because there is no full use of social resources. Business equity manufacturers, both manufacturers to reduce cost of sales, but also improve business profitability. After 10 years of accumulation, Suning Appliance distribution in the formation of a strong field, which is the basis for cooperation with manufacturers Suning. Suning in April 2000 with the Panda Electronics Group formed a joint venture in Nanjing Panda Electronic Equipment Company, specialized in producing air conditioners and other white goods Panda products. October Suning and the United States invested 60 million yuan each Feige international joint formed Feige air conditioning (Nanjing) Industrial Co., Ltd.. Feige International chai