Jul 27, 2020|
JD Will Own 5STAR 100% to Strengthen Omnichannel Presence
by Rachel Liu
JD has completed the acquisition of the remaining 54% of equity in 5STAR, which when combined with the previous 46% stake makes 5STAR a wholly-owned subsidiary. On August 12th, JD and 5STAR will hold a delivery ceremony in Nanjing, Jiangsu province.
5Star was established in 1998 with annual sales over RMB 18 billion. It is the third largest home appliance chain-store in China, only next to Suning and Gome.
As a “supply chain-based technology and service enterprise”, JD has won the trust of many users with high-quality customer experience, and has a leading advantage in electronics, home appliances, and consumer goods.
Over the past year, JD has invested in offline retail enterprises such as 5STAR, Gome, DIXINTONG, and Lecoo. It has also launched multiple offline ventures such as JD E-Space, JD Home Appliance Store, JD Computer and Digital Store, and JD Home. The acquisition of the remaining shares of 5STAR will further optimize JD’s electronics and household appliances supply chain, and improve their omnichannel capabilities. In other words, JD hopes to create an offline JD.
JD formed partnership with 5STAR in 2017, and started to build JD and 5STAR Omnichannel Experience Store in 2018 in cities including Luoyang, Hangzhou, Cixi, Wenzhou, Fuzhou and more. During the 618 Grand Promotion in 2018, traffic of 5STAR stores increased nearly 30% y-o-y, and sales increased by over 50%. Now 5STAR have over 700 stores in China.
JD acquired 46% of 5STAR stake with RMB 1.27 billion on April 17, 2019.