The Xiamen Municipal Bureau of Commerce entered a strategic partnership with Suning Commerce Group, a surging e-commerce enterprise in China, by signing a cooperative agreement during the last weekend of October.

According to the agreement, the cooperation between the bureau and Suning will be focused on the Internet Plus strategy, smart and environmental-friendly logistics, and rural e-commerce.

Suning's e-commerce brand Suning.com will set up two service centers in Tong'an district in 2015, and will have 10 direct-sale stores and 20 franchise stores in the city (outside Xiamen Island) by 2017. Xiamen Island is the most developed area in the city.

By 2017, 200 e-commerce contact persons in rural areas will be enlisted into Suning's delivery system. And with the bureau's support, Suning will exert its advantages in self-owned storage facilities, trunk line transportation, and last-kilometer delivery service to extend its e-commerce operation in Xiamen to rural areas and small communities.

Suning is also looking for partnerships with local enterprises. It aims to sign 1,000 business partners in the local area.

Suning entered Xiamen in 2005. The city is the company's headquarter in Southern Fujian province. To date, 1 million people have signed up memberships at Suning's Xiamen branch, whose sales are expected to top 1.2 billion yuan ($188 million) in 2015.

China is committed to promoting the e-commerce initiative to develop rural areas, according to an executive meeting of the State Council on Oct 14. Premier Li Keqiang presided at the meeting, where it was also decided to ramp up telecommunications and courier services in rural and remote areas in China.

Prompted by the bullish news, Suning, trading on the Shenzhen Stock Exchange, jumped 4.86 percent on Oct 15. It's share price rose again to the daily limit on Oct 20, reaching 15.91 yuan.

 

By Liu Sitong and edited by Peter Nordlinger