Suning Commerce Group Co, the country's largest electronic retailer, said it will invest $420 million in video website PPTV.com, along with private-equity firm Hony Capital Ltd, to further integrate its resources in content and distribution channels as part of its efforts to transform into an Internet retailer.

Suning will invest $250 million, taking up 44 percent of PPTV and becoming its largest share holder. The deal is the retailer's largest single investment and will be "strategic", said Sun Weimin, vice-chairman of Suning.

He said the combination of Internet retail and an intelligent video website will facilitate Suning's goal of building up a cloud business model that integrates all distribution channels, product lines and customer bases.

Sun said the two sides will provide platforms and content for upstream electronic manufacturers and content suppliers and build up industrial chains. The retailer's massive sales volumes of more than 10 million television units will also boost the business development, he said.

PPTV, founded in 2005, covers Internet terminals including websites, computers, mobile phones and iPads, with more than 340 million active users and ranked No 3 in the video website sector.

Tao Chuang, CEO of PPTV, said the new investment from Suning will expand the user database from online to physical stores and enhance their knowledge of their customers.

Suning could become the first group to get a license for mobile virtual operators by partnering with China Unicome Ltd and China Telecome Corp Ltd.