Suning's offline and online platforms will cover automobiles, electric motorbikes, automobile electronics, car decoratives, engine oils, rental and used cars. The platforms will deal with buyers directly with no middlemen in between.
"It's not right to say we have the lowest price. But our pricing is transparent, products offered are diverse and we guarantee quality," said Liu, who is also the president of Suning Digital Company. "The ball is now in the consumer's court."
Suning is collaborating with Ping An Automobile Butler to offer auto finance and auto insurance services in a one-stop-shop model.
Gome, another major retail player in China, is planning to add a car section at most of its 1,700 stores in the country. The project is expected to start within a year.
Gome's existing stores, usually located in downtown urban areas, record a large number of footfalls. So, the potential for the upcoming car business is high, said Zhang Haifeng, head of Gome's car business, in a meeting with potential investors in Kunming, Yunnan province, last month.
He said e-commerce alone won't suffice as an alternative auto sales channel, so brick-and-mortar stores are important too.
Alternative channels need not be seen as competition to existing dealer networks. Instead, Gome's planned auto foray will help both carmakers and dealers to sell cars.
"So, if you think we're going to replace car dealers, then you have misunderstood our business model."
He said Gome is building a system that is open to car dealers and carmakers. It is up to them to decide what car models they would offer to consumers through the new system. But, if the new approach gives customers a stronger voice, car dealers and carmakers would naturally offer better-selling products and better prices, Zhang said.
"So, we're not going to fight dealers. Instead, we'd like to invite them over to huddle together for warmth."
Meanwhile, Tmall, the e-marketplace owned by Alibaba, announced plans on July 26 to unveil an ultramodern real-world garage resembling a snack or beverage vending machine by the year-end.
Tmall consumers can push a button to select their car and drive away in it in a jiffy, according to Yu Weixuan, general manager of Tmall Automobile, the division of Tmall that is driving the garage venture.
