Alibaba to Integrate Goodaymart Logistics Network with Cainiao
Sina Tech, 12/09/13
Zhou Yunjie, Chairman of Chinese consumer electronics manufacturer Haier Group, has announced further details regarding the recent partnership between Chinese e-commerce conglomerate Alibaba Group and Qingdao Haier Logistics (Goodaymart), a subsidiary of Haier Group's Hong Kong-listed subsidiary Haier Electronics Group (1169.HK). According to Zhou, the cooperation will not affect Goodaymart's position as a large-sized goods logistics company, and will instead see Goodaymart expand its logistics operations by integrating warehouse resources with Alibaba's smart logistics subsidiary Cainiao.
Haier Group has two major listed subsidiaries: Qingdao Haier (600690.SH) and Haier Electronics Group. The former is primarily involved in the manufacture of household electric appliances, while the latter is primarily involved in logistics, retail channels, and marketing. The Goodaymart brand is a subsidiary of Haier Electronics Group.
Following Alibaba's strategic investment in Goodaymart, Haier will be given the right to appoint three of the directors on Goodaymart's board, while Alibaba will appoint one. Both companies will jointly appoint the remaining director. Haier will maintain management of the company, while Alibaba will nominate a company VP.
Goodaymart has more than 2,800 logistics and distribution centers nationwide that provide delivery, installation, and after-market services. Zhou has disclosed that Haier has been investing in its logistics system for nearly 20 years, with investment totaling several tens of billions of RMB.
In addition to delivering Haier products, Goodaymart delivers products for other appliance manufacturers and online large goods vendors. Currently, Haier goods account for 70% of Goodaymart's delivery orders. Zhou predicts that within the next several years, Haier goods will account for less than 50% of Goodaymart's orders.
During last year's November 11 "Singles Day" online shopping holiday, Goodaymart provided logistics services for Alibaba Group's B2C e-commerce site TMall. During this year's Singles Day holiday, Goodaymart handled more than 300,000 of TMall's large goods orders, delivering 130,000 orders on the day of purchase.
Keywords: e-commerce Internet Haier Haier Group 1169.HK Zhou Yunjie logistics Alibaba Group 600690.SH Cainiao Goodaymart
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