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Briefing Aug 13, 2020 05:07 pm EqualOcean

GOME Goes Online with Ex-Baidu Vice President as CEO

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Aug 11, 2020 11:28 am ·

JD.com and GOME Announce CNY 30 Billion Joint Procurement Plan

Yan Xiaobing (Chinese: 闫小兵), senior vice president of JD.com (JD:NASDAQ) and President of JD Retail Group, said that "JD.com and GOME have always been committed to creating maximum value for consumers and partners. This year’s epidemic has affected the home appliance market, giving us new opportunities. The joint procurement between the two parties will effectively open up all aspects of production, distribution, circulation and consumption, comprehensively improving efficiency and bringing consumers a richer variety of products and product experience." In March 2020, GOME’s (0493:HK) official flagship store entered JD.com seeing its performance steadily improved. Two months later in May, GOME introduced JD.com in the form of convertible bonds to become a strategic partner, further deepening the partnership. Since then a large number of GOME’s offline mid-to-high-end products and customized products have been launched on JD.com, and vice versa. Wang Jun Zhou (Chinese: 王俊洲), President of GOME Retail, said that "the strategic cooperation between GOME and JD.com in joint procurement is a further upgrade and deepening of the previous series of cooperation. Through the further integration of the supply chain, traffic, service and other advantageous resources of both parties, we will continue to provide users with high-quality products and services." It is reported that this joint procurement not only covers traditional home appliances such as TVs, refrigerators, washing machines, air conditioners, kitchen appliances, etc. but also includes small appliances.

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Jun 15, 2020 12:47 am ·

GOME: Former Retail Giant Returns after a Silent Spell

►The company had been struggling for years with deteriorating market shares and unfavorable financial results.  ►Newly prepared thanks to team-ups with JD.com and Pinduoduo, GOME looks to have finally found its way out.  Since the strategic investments from JD.com were announced, the stock price of GOME Retail has been increasing for ten consecutive days. On May 28 JD.com subscribed to USD 100 million of convertible bonds on GOME with a 37.91% premium, boosting all the listed companies’ prices under GOME Gr. Among which, GOME Retail has constantly been outdoing itself, with the stock price increasing for ten consecutive days. This is not the only case. On April 19, GOME announced a strategic cooperation with Pinduoduo, which has invested in GOME’s convertible bonds to the tune of USD 200 million, at a premium of 66.44%. GOME Retail’s price surged 16.44% the next day, with the transaction volumes boosted. The stock price of Pinduoduo was also pushed up 12.71% to a record high.  Teaming up with two e-commerce giants in two months, integrating traffic pools and logistics systems, GOME is building its new consumption pattern. After falling silent for years, the former retail giant is expected to come back.  Pre-cooperation GOME has experienced some tough times in recent years.  According to the 2019 annual report for the Chinese home appliance industry, the retailing scale for the industry reached CNY 803 billion, among which Suning ranked first at 22.8%, JD took up 14.4%, followed by Tmall of 8.8%. GOME only accounts for 5.8%, ranking No.4.  The revenue of GOME recorded CNY 59.48 billion at a YoY decrease of 7.57%, and a narrowing net loss compared to 2018, recorded at CNY 2.59 billion. However, when contrasted with Suning, which was at the same level as GOME, we see a reported net income of CNY 11.02 billion in 2019.  Among the CNY 59.48 billion revenue, CNY 49.6 billion comes from the offline stores. The online business. The new retail model, which combines both online and offline, hasn’t been applied by GOME. Renaissance Fortunately, the pandemic has pushed GOME to transform.  The company’s exploration in online selling has started to produce results. GOME cooperated with CCTV (China Central Television) to stream live, with sales figure exceeding CNY 723 million in three hours. Some other livestream approaches also showed success. The company has discovered a new and suitable online expansion path, based on community marketing and logistics advantages.  Moreover, with the collaborations with JD.com and Pinduoduo, GOME is speeding up the transformation process. The integration of online expansion and offline stores, as well as the logistics network, coupled with the collaboration of supply chains and traffic pools backed by JD.com and Pinduoduo, has fueled GOME’s momentum in sustainable growth.  Without a doubt, GOME’s brand and value need reassessing.

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May 29, 2020 02:10 am · Sina

JD Strategic Invested in GOME with USD 100 million

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Apr 3, 2020 07:56 am · Lanjing Finance

Hundreds of stores sink, former giant Gome wants to overturn

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Sep 16, 2020 02:59 pm · Kuaishou

Kuaishou E-Commerce Order Volume Exceeded 500Mn in August

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Sep 16, 2020 10:29 am ·

Alibaba is in Talks to Invest Zhilian Zhaopin

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Sep 16, 2020 10:11 am ·

Guiding Price of Huazhu Group is HKD 297/Share

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