JD.com and GOME Announce CNY 30 Billion Joint Procurement Plan
This is reportedly the largest purchase in China's home appliance and consumer electronics industry this year.
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.