JD announces strategic investment in Gome
JD announced a strategic investment in brick-and-mortar home appliance and electronics retailer Gome with a subscription of US$100 million in convertible bonds.
JD states that the cooperation will provide business synergies in supply chains and logistics networks, and is also an extension of its strategy to open up retailing capability to collaborators.
Gome said in stock exchange filing on Thursday that it plans to leverage the online retailer's platforms, resources and strengths to accelerate its penetration in online communities and better serve customers in both the digital and physical retail arena.
The two parties will also carry out joint procurement and joint marketing with a view to enhancing the product competitiveness and scale of sales, logistics services, financial services and other related services.
"The cooperation is in line with Gome's strategy to develop innovative retail models integrating social e-commerce platforms, physical stores and the GOME APP," it added.
Earlier this month Gome launched a third-party flagship store on JD as retailers which might normally compete are finding common ground to leverage each other's respective strengths in partnerships.
JD in recent years has taken initiatives to tie up with physical retailers such as electronic and home appliance vendor Jiangsu Five Star.
It also set up self-operated specialty stores for digital gadgets and home appliances to offer various formats for online shoppers to learn more about their purchases.
