Reunification Year?Gome holds hands and fights with JD.com

“Reunification Year”?Gome holds hands and fights with JD.com
“The richest man in the past” Huang Guangyu is about to return, and 2020 is destined to be the “year of return” for Gome.Since the beginning of this year, Gome has made a lot of retail moves. It entered JD.com in March and established an official flagship store. On the evening of April 19, Pinduoduo invested US $ 200 million in Gome Retail, accounting for nearly 6% of Gome ‘s share capital.For more than a decade, the domestic retail landscape has quietly changed. Ali, JD.com, Pinduoduo, Suning have attacked the city, social e-commerce, and sinking channels are also in the ascendant. Can Gome Retail, which is expected to be able to fight back in years?Do you work together to fight with Jingdong, is it vertical and horizontal?Can Huang Guangyu, who is about to return from the king, reappear the glory of that year?Side-selection team: Pinduoduo on the left and Jingdong on the right on the evening of April 19th, Gome Retail and Pinduoduo reached an in-depth strategic cooperation. Pinduoduo made strategic investment in Gome with convertible bonds totaling US $ 200 million.215, the average closing price of Gome Retail ‘s April 17 closing price on April 17 and the average closing price of the five consecutive trading days ending April 16 were 66.44% and 68.75%.The announcement stated that, assuming Pinduoduo exercise of the conversion right, it will be allotted and issued12.800 million new shares, accounting for about 5 of the issued share capital of Gome Retail Announcement Day.96% and Gome Retail ‘s issued share capital after the allotment and issuance of conversion shares expanded to approximately 5.62%.This means Pinduoduo will become the largest external shareholder of Gome Retail.According to the agreement, the two major service platforms of Gome’s Anxun Logistics and Gome Butler will simultaneously become Pinduoduo logistics and home appliance service providers.The two parties have cooperated in joint large-scale procurement, customized products, joint marketing, home appliances going to the countryside, and the formation of online and offline traffic alliances.The two parties are not the first to cooperate. As early as 2018, Gome’s official flagship store has settled in Pinduoduo, which basically covers internal household appliances, small appliances, and 3C categories including color TVs, washing machines, refrigerators, and air conditioners.In March of this year, Gome Retail and Pinduoduo also jointly announced that they decided to jointly promote “onion supplements” with 100 brands, that is, the first layer of co-branded companies to make a profit; the second layer through Gome’s supply chain advantages to reduce commodity prices;More than tens of billions of subsidies will be added to the level, and the supplement will be reduced to 1,000 yuan after the drop.”In the past two years, from platform to service to today’s capital-scale cooperation, the cooperation between Gome and Pinduoduo has been deepening.”Gome retail CFO representative, as a fast-growing new Internet e-commerce platform, Pinduoduo’s brand value and influence continue to highlight, Gome and Pinduoduo will jointly promote in multiple dimensions such as supply chain, logistics, service, technologyRetail enterprise value upgrade.Gome Retail cooperates with Pinduoduo as well as with JD.com.On March 13, the official flagship store of Gome officially entered JD.com.According to reports, Gome will provide JD platform users with a richer range of mid- to high-end home appliance products, as well as a synchronization service for delivery of large and medium-sized items.In the future, JD’s department stores and FMCG supply chains will supplement Gome channels.From competitors to collaborators, Gome and Pinduoduo, JD.com is not the first case.In the retail circle, Gome, Suning, Ali, JD.com, and Pinduoduo have intricate relationships. They used to “meet each other” in shopping malls. Afterwards, they shook hands and made peace.In 2015, Alibaba invested US $ 28.3 billion in Suning Tesco to become its second largest shareholder, Suning also became Alibaba ‘s shareholder, Suning Tesco ‘s official flagship store entered Tmall, Suning and Alibaba became strategic partnersBoss, the youngest against the layout of the second.Ali and Suning have not only cooperated in online and offline appliance retail.In April 2019, JD.com took 12.7 trillion acquired a 46% stake in Wuxing Electric, which is Suning, Gome’s third-largest offline home appliance retailer.Today’s Internet field is already divided by giants, and Tencent and Alibaba are everywhere.Gome and Suning have always been “friends”, Gome will certainly not go to the Ali Suning camp.The joint shareholder of JD.com and Pinduoduo is Tencent. Gome’s hand in hand with JD.com and Pinduoduo is also to accumulate more chips for itself.”The current economic development shows a trend of integration and verticality, and Pinduoduo and Gome have comprehensive and in-depth cooperation to empower each other, or will rewrite the retail layout.”Household appliance industry analyst Liang Zhenpeng pointed out.Self-innovation: Drainage and sinking online home appliance consumption has been included in an important proportion.According to the “2019 Annual Report on China’s Home Appliances Industry”, the online retail sales of the home appliance industry in 2019 will be US $ 310.8 billion, an increase of 4%.2%, the market share reached 38.7%; the offline market retail volume is US $ 492.4 billion, with an annual increase of -5.8%, with a market share of 61.3%.From the sales data of all channels, thanks to the coordinated development of online and offline, Suning.com has reached 22 in the entire home appliance market.8%; JD.com ‘s market share is 14 due to the much smaller offline physical stores.4%, if the five-star appliances are included, the total size is 15.6%; Tmall accounted for 8.8%, Gome retail accounted for only 5.8%.Revenue from the home appliance business has always surrounded Suning, and JD.com’s e-commerce platform plays an important role.Can be polished, all channels of home appliance retail, Suning and Ali have a total of 31.6%, a clear lead; JD.com and Wuxing, Gome totaled 21.4%, there is still a gap between the two camps.In addition, retail in Gome 5.Of the 8%, most of it comes from offline, and the scale of offline retail sales in the home appliance industry ranks year after year.Gome has great retail pressure.On the evening of March 31, Gome Retail released the 2019 annual audit performance report, and obtained sales revenue of approximately 594.83 trillion US dollars, an average of 7 per year.57%, net profit 25.9 billion yuan, sustainable 48 in the same period in 2018.8.7 billion.The total sales revenue of 1,308 comparable stores in Gome in 2019 is approximately 496.6.4 billion, down 4 every year.45%.In the early days, the sinking market was hot, and the social e-commerce boom continued.Gome also launched Gome stores to enter the field of social e-commerce; transformation, speeding up the layout of county stores.In 2019, GMV of Gome stores increased by 101%, and GMV of county stores increased by approximately 61%.Such data has made great progress for Gome itself, but in terms of the industry, it is difficult to succeed alone.With the rise of social e-commerce represented by Pinduoduo, consumer groups outside the “five rings” are exerting their strength, and home appliance consumption is also becoming a hot search category for Pinduoduo. However, instead of channel cooperation, Pinduoduo sells in branded home appliances.Not dominant.This investment in Gome also complements the advantages of both sides.“For Pinduoduo, Gome ‘s brand endorsement will enhance the value of goods and services, which will help attract attention to users and drive unit price increases in the future, while meeting the consumption upgrades in the low-end market and the mid-to-high-end demand in the first- and second-tier markets;As far as Gome is concerned, supply chain, logistics, service and other retail infrastructures are docked with Pinduoduo, which will therefore obtain more traffic and become “home?””Life” strategic transformation expands market incremental space.”Liang Zhenpeng thinks.Gome, which started with home appliance sales, is still a vertical sales platform for home appliances.At the same time, Suning experienced many years of transformation, coupled with the acquisition of Wanda Department Store, Carrefour China, and the smart retail layout has been continuously improved.Gome urgently needs to transform and upgrade, and cooperate with JD.com, in the future department stores, fast-moving consumer supply chain replacements will be released to Gome channels.This is also helping Gome to become more integrated, which can continuously improve platform traffic and activity.Sauna and Yewang noticed that in these two collaborations, Gome highlighted the ability of offline stores to achieve buy-and-get-out of 3 kilometers in length.Online traffic meets the threshold, and major e-commerce platforms have set up “initial warehouses” online. Pinduoduo and JD.com may also value the advantages of Gome stores.In the “Year of Return”, Gome ‘s reforms are more open-minded, invest more, invest in JD.com, and actively participate in industry vertical camp competition, which is conducive to promoting Gome ‘s digital transformation, supply chain upgrade, and comprehensive expansion, which can quickly improve its competitivenessThe 33-year-old Gome added a little vitality.Sauna, Ye Wang Chen Weicheng Editor Li Weijia Proofreading Liu Jun