China Business News, 2/13/12
A source close to Chinese home appliance and consumer electronics retailer Gome's (0493.HK) online store (http://www.gome.com.cn) revealed recently that the site would open a store on B2C e-commerce site Dangdang (NYSE: DANG). The retailer's "Coo8" e-commerce site opened a store on the Taobao Mall (TMall) platform last September that has since become TMall's largest 3C merchant. The source compared TMall to commercial real estate, saying that Gome's store on the platform had led to an increase in sales volumes. The partnership with Dangdang will reportedly follow a similar model.
Yu Liangchuan, general manager of Gome's online store, declined to comment on the rumors. While conceding that a possibility existed for Dangdang and Gome to complement one another's strengths, Yu said Gome employees had not received notification of any related plans.
Yu did say, however, that Gome would step up e-commerce efforts this year as part of a strategy to lead in online and offline sales. Gome has been satisfied with the online store's performance since it was re-launched with a new design seven or eight months ago, Gome executive vice president Wang Junzhou said, and has high hopes for its continued development this year.
Editor's Note: For more information on this topic, please see "Rumor: Dangdang, Gome Form Strategic Partnership," MD 2/10/12 and "Taobao Mall Open Platform Launches with 38 Vertical B2Cs," MD 9/19/11 issues.