Business / Companies

Sinopec looking to forge ties with e-commerce firms

By Du Juan (China Daily) Updated: 2014-03-18 07:34

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The group started its exploration of e-commerce business in late 2012 when its subsidiary Sinopec Guangdong Oil Products Co launched an online oil purchasing platform and another non-oil online shopping website targeting vehicle owners.

In addition, Sinopec owns a shopping website - ejoy365 - which was launched on Jan 1, 2012. In addition to being offered cards to use when buying fuel, people can also purchase food, beverages, electronic appliances and car accessories on the site.

In recent years, the non-oil business of Sinopec has developed rapidly with revenue growth rising from 1.1 billion yuan ($178 million) in 2008 to 11 billion yuan approximately in 2012. However, the ejoy365 shopping website still has much room to improve in terms of its account service and customer retention.

On Feb 19, Sinopec announced a plan to seek social and private capital investment, which highlighted the country's endeavors to form a mixed ownership economy amid expectations of further opening-up.

The oil retail business sector that the company opened up to investors includes more than 30,532 fuel stations, pipelines and storage.

Liao Na, vice-president of Shanghai-based energy consultancy ICIS-C1 Energy, said the oil retail sector has been a stable and healthy business unit within the company, and therefore significant.

Zhu Ping, general manager of Sinopec Jiangsu Oilfield Co, said earlier this month that State-owned companies should focus more on core areas related to the security of national energy supplies and the macro economy. He added they should provide room for private companies to participate in other aspects of the business.