After collaborating with Pinduoduo, Gome Retail’s circle of friends ushered in Jingdong Group.
On the evening of May 28, Jingdong Group announced a strategic investment in Gome Retail (00493.HK) to subscribe for overseas convertible bonds issued by Gome Retail for US $ 100 million.
JD.com said that the strategic cooperation between JD.com and Gome Retail is the further deepening of the cooperation between the two parties following the official entry of Gome ’s official flagship store on the JD platform. According to the agreement, the two parties will realize more efficient collaboration and integration of the commodity supply chain based on the online and offline advantages accumulated over the years, and will achieve resource sharing in logistics distribution and installation services, as well as cooperate in the development of all services Location business, etc.
Jingdong said that this cooperation is another strategic extension of Jingdong Group. Jingdong Group has invested in enterprises such as Wuxing Electrical Appliances, Dexintong, Lenovo Laiku, etc. JD.com Super Experience Store, JD.com Home Appliance Store, JD.com Digital Store and other formats.
For Gome, according to Gome Retail Announcement, strategic cooperation can enable Gome Group to use JD ’s platform, resources and advantages to accelerate the penetration of online communities. It is better to cooperate with customers in the field of physical retail, and the cooperation with JD.com is in line with the Group’s efforts to develop an innovative retail model strategy that integrates social e-commerce platforms, physical stores and Gome App.
It is worth noting that in April, Gome Retailing just reached an in-depth strategic cooperation with Nasdaq: PDD, another home appliance business platform. Pinduoduo made strategic investment in Gome with convertible bonds totaling USD 200 million.
The information released at the time showed that Gome ’s retail products will be sold in full quantity, and branded home appliances will be connected to Pinduo ’s “10 billion subsidy” plan. Gome’s two service platforms, Anxun Logistics and Gome Butler, will simultaneously become Pinduoduo logistics and home appliance service providers. The two service platforms will provide Pindoduo platform merchants with nationwide large and medium-sized logistics, warehousing and delivery services , And consumer service programs including home appliance repair-cleaning and maintenance-trade-in. Pinduoduo will inject Gome with consumer digital data, platform traffic and other advantageous digital retail resources, and the two parties will also actively cooperate in market promotion and other aspects.
It is worth mentioning that in the glory period of offline electrical malls in the early years, Gome and Suning used to be two fiercely competitive giants. However, since then, Gome suffered from poor transformation, while Suning and AliIn-depth cooperation, earn a place in the online market, and compete with Jingdong in multiple shopping festivals. Today, Gome and JD have joined forces.