Gome Acquires 80% Stake in Coo8
Sina Tech, 11/22/10
Chinese electronic appliance retailer Gome (0493.HK) has announced that it has entered the e-commerce market by acquiring an 80% stake in Kuba Technology (Beijing) Co., Ltd., which operates online B2C consumer electronics site Coo8.com (formerly 51mdq.com), for RMB 48 mln. After receiving Gome's strategic investment, Coo8 will focus on home appliances and consumer electronics, as well as offering other channels such as in-vehicle electronics and health and exercise equipment, ultimately offering six different product categories.
According to the strategic agreement, Gome will provide Coo8 with complete procurement and sales support for home appliances and consumer electronics products. Gome's nationwide retail chain currently offers more than 100,000 kinds of products, all of which will become available on Coo8. At the same time, Gome will also provide comprehensive support for nationwide distribution, after-sales service, customer relations, and data processing.
Gome VP Mou Guixian will become CEO of Coo8.
Gome president Wang Junzhou said that Gome had decided to make the acquisition based on Coo8's position in the domestic 3C e-commerce vertical site market and its focus on consumer electronics, as well as its online platform and online shopping market resources in 10 cities, including Beijing, Shanghai, Guangzhou, and Xiamen.
According to industry rumors, Gome will launch its own e-commerce platform next year following the acquisition, preparations and technical debugging for which have already been completed.
Editor's Note: For more background on this topic, please see "Rumor: Gome Acquires Coo8" MD 10/29/10 issue.
Keywords: Mou Guixian Wang Junzhou consumer electronics e-commerce Internet retail B2C Gome home appliances 0493.HK Coo8.com Kuba M&A
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