May 29, 2020|
JD.com Makes Strategic Investment in Gome Retail
by Tracy Yang
On May 28th, JD announced a strategic investment in Gome Retail, one of China’s largest electronics chains, and will buy $100 million worth of convertible bonds in the company. The strategic cooperation between JD.com and Gome Retail is a further deepening of the cooperation between the two sides after Gome’s official flagship store launched on JD.com.
According to the agreement, leveraging both parties’ online and offline advantages over the years, the two sides will achieve more synergies and better supply chain integration, as well as resource sharing in logistics and installation services, and other business-related aspects such as financial services.
This cooperation is also another strategic extension of JD.com’s reach in home appliances. In the last more than a year, JD.com has invested in Five Star, D Phone, Lecoo and other enterprises, and created a large number of diversified formats, such as JD E-Space, JD Computer and Digital Products Stores and JD Home Appliance Experience Stores. The strategic cooperation with Gome not only marks the acceleration of JD’s integration and opening up, but also represents the company’s commitment to promote an ecosystem approach by relying on its infrastructure, including supply chain, logistics, and technology. It also represents JD’s commitment to work together with partners for more efficient and sustainable development.
JD.com is a “supply chain-based technology and service enterprise”, and has won the trust of many users with its high-quality customer experience. The company has a clear advantage in omnichannel retail for digital products, home appliances, consumer goods and other categories. At the same time, it is home to more than 2,600 brands with over RMB 100 million in sales each on JD and hundreds of thousands of merchants around the world to achieve faster growth. JD’s 17th 618 Grand Promotion is also the first national shopping festival in the post-epidemic era. The strategic cooperation announced by JD.com and Gome will undoubtedly provide a strong boost to promote economic recovery and consumption growth after the epidemic.