Source: By Fan Feifei | chinadaily.com.cn | Updated: 2020-03-13 15:49
Chinese consumer electronics retailer Gome has launched a third-party flagship store on e-commerce giant JD, enabling the home appliances products from Gome's brick-and-mortar stores to be available to more Chinese shoppers online.
As part of this partnership, JD will provide data, technology and customer service-related support to the Gome store. Gome will use its own warehouse and logistics facilities for the third-party store, but it will also use JD's supply chain to introduce consumer goods to its online platform gome.com.
Industry insiders said the cooperation will prompt the two companies to complement each other's advantages. Launching an online store at JD will help Gome obtain huge traffic from online marketplace, while JD will further expand its product portfolio through introducing Gome on its platform, especially some high-end products that target the offline market.
A report issued by Beijing-based consultancy All View Cloud said online retail channels are expected to contribute more than 70 percent to overall revenues in the first quarter as people are staying at home to quarantine themselves.
The brick-and-mortar stores have witnessed a sharp decline in the number of customers and sales revenue, along with rising pressure from operation costs, the AVC report said.