CHINA’S e-commerce giant Alibaba Group Holding Ltd. will spend 28.3 billion yuan (US$4.6 billion) for a stake in electronics retailer Suning Commerce Group Ltd. to bolster its reach in electronics with a network of stores in China.

    Alibaba will buy a 19.9 percent stake in Suning, which will in turn spend 14 billion yuan for shares in the e-commerce operator, according to a statement issued yesterday. The companies will partner in logistics and online sales to target deliveries as fast as two hours.

    “This new alliance brings forth a new commerce model that fully integrates online and offline,” Alibaba executive chairman Jack Ma said in the statement.

    China’s Internet giants have been racing to offer services in brick-and-mortar retail spaces and link them to their online consumers. The focus on what is known as online-to-offline has seen an explosion of startups in China in food delivery and other services, as well as the forging of alliances among such firms.

    Suning, which lists shares in Shenzhen, has been seeking to diversify its business in recent years.

    Suning has more than 1,600 outlets spread across 289 cities in China selling appliances, books and baby products. Alibaba will become the second-largest investor in the Nanjing-based retailer.

    The partnership helps Alibaba in its battle with second-ranked JD.com Inc., which specializes in selling branded electronics. The partnership with Alibaba’s Cainiao logistics affiliate will cover almost all of the 2,800 counties and districts in China, they said. (SD-Agencies)