HONG KONG China's top home appliance retailer, Suning Appliance Co Ltd (002024.SZ), said it will buy an infant goods e-commerce site for $66 million to expand its online footprint the country and broaden its product lines and better compete against GOME Electrical Appliances (0493.HK).
Suning, which is seen by some as China's answer to Best Buy (BBY.N), will buy Redbaby.com.cn to widen its product lines, the firm's vice chairman, Sun Weimin, was quoted as saying on Suning's official microblog. e.weibo.com/suningyigou
Redbaby.com.cn, founded in 2004, is one of country's largest online shopping sites that mainly sells maternal and child supplies. Redbaby.com.cn has more than 3 million customers in nine provinces, according to its website.
In China's intensely competitive online marketplace, Suning competes with 360buy, E commerce China Dandang Inc (DANG.N), Amazon.com Inc (AMZN.O) and Alibaba Group's Taobao Mall. China has about 210 million online shoppers, according to government data.
Suning operates a network of about 1,700 stores and said earlier this month it will open Suning Expo Super Stores in China that will sell everything from books to daily necessities, in a move to offset slow growth in its core business. [ID:nL4E8K51LZ]
(Reporting by Twinnie Siu and Donny Kwok; Editing by Matt Driskill)