The “grievances” between Gome and JD.com seem to have to continue.

A new retail alliance was born.

I learned that on April 19, Pinduoduo announced its subscription for the US $ 200 million convertible bonds issued by Gome Retail, with a term of three years , a coupon rate of 5%, and a preliminary conversion price of 1.215 per share Hong Kong dollar. If all conversion rights are finally exercised, Pinduoduo will be allocated up to 1.28 billion Gome shares , accounting for about 5.62% of the enlarged share capital of the latter ’s conversion shares.

In addition, the two parties have entered into a strategic cooperation agreement on product procurement and sales, resource cooperation and support, joint marketing and other related services. The main cooperation matters include:

  • All Gome retail products will be available on Pinduoduo, and brand home appliances will be connected to Pinduoduo ’s “10 billion subsidy” program;
     

  • Gome ’s two major service platforms, Anxun Logistics (with over 6,000 service outlets nationwide) and Gome Butler, will become Pinduoduo Logistics and Home Appliances Service providers, respectively provide Pindo multi-platform businesses with nationwide large and medium-sized parts logistics, warehousing and delivery services, as well as consumer service solutions including home appliance repair-cleaning maintenance-trade-in; < / li>
     

  • Pinduoduo injects digital retail resources such as consumer big data and platform traffic into Gome;
     

  • The two sides will also cooperate in marketing and other aspects.

    In March 2020, Pinduoduo and Gome jointly launched the “Super Brand Day” event for the first time. In the form of direct price reductions, consumer subsidies, and joint benefits, they launched a 500 million yuan consumer gift package, covering home appliances, digital beauty, More than 6,000 selected products in nearly 10 categories such as daily necessities. This time Pinduoduo subscribes to GomeConverting debt means that the cooperation between the two parties will be further upgraded.

    “In the past two years, from platform to service to today’s cooperation at the capital level, the cooperation between Gome and Pinduoduo has gradually deepened.” said Fang Wei, GFO retail CFO. Gome entered Pinduoduo in 2018, and its official store is one of Pinduoduo’s fastest new products and the fastest sales growth.

    Jiding, vice president of Pinduoduo, said that the platform will establish a deep connection with Gome in terms of commodity procurement, consumer subsidies, logistics distribution, and customer service after-sales, to realize the digital transformation of ground retail.

    It is worth noting that also in March this year, the official flagship store of Gome officially entered JD. Before that, Gome and JD have been competitors for 16 years. Gome started as an offline home appliance chain, and then developed an online business to create Gome Online; JD.com started online and now explores retail businesses such as home appliances 3C offline. The two are directly competitive.

    The cooperation between Gome and JD.com seems to represent a handshake between the two parties, and the 16 years of “grievance” ended. In any case, Gome is not the winning side in this game.

    Now, Gome has chosen to hold hands and work hard to form a new retail alliance. It seems that Gome and JD ’s “grievances” must continue.