JD.com Wholly Acquires Home Appliance Company 5 Star Electric
After cooperating with 5 Star Electric Company from 2017, JD.com has announced that it has wholly-acquired the company in August 2020 and will rename it JD 5 Star Electric Company. The new company will continue to operate independently. Pan Yiqing, the former president of 5 Star Electric, served as the president of the new company, and Ma Ji, the vice president of JD Group, became the chief financial officer of JD 5 Star Electric.
According to JD.com, the original direct-operated stores will undertake the functions of JD's offline technology display center, customer experience center and member service center through omnichannel digital reform.
5 Star Electric is the third-largest home appliance chain in China and currently has more than 1,000 stores. The company has begun to transform into an omnichannel model of online and offline integration, and online sales account for 40% of revenue.
"By 2025, JD.com will open 20 JD Super Stores in first-tier cities, 300 flagship stores in cities above prefecture level and 5,000 stores in towns. These stores, together with the existing 15,000 JD home appliance stores, will create another JD offline channel," said Yan Xiaobing, senior vice president of JD.com and president of JD Retail Group's 3C home appliance retail business group.