Gome Jingdong alliance upgrade: 30 billion joint procurement or reshape the industry pattern

 Gome Jingdong alliance upgrade: 30 billion joint procurement or reshape the industry pattern

In the process of cooperation, we pay more attention to the synergy generated by cooperation. Wang Junzhou, President of Gome retail, told the 21st century economic report that the current agreement is the first phase goal of our joint procurement. We fully believe that through joint procurement, we can enhance the competitiveness of both sides in standardized products.

It is reported that the direction of joint procurement of goods can be divided into two categories. The first category is standardized products, and the other is high-end new products upgraded around user consumption.

The improvement of standardized commodity categories brought by joint procurement is mainly reflected in the supply chain. Gome and Jingdong should be the largest suppliers in the domestic supply chain. Wang Junzhou said, on the understanding of the supply chain, the primary is scale, and the final level is efficiency. Who can win in the competition depends on how efficient the supply chain is.

Under the current market competition pattern, such as TV, refrigerator, mobile phone and other standardized products, the price gap in each platform is not big. However, when the procurement scale is improved, the purchase price will be significantly reduced, which will improve the efficiency of the whole supply chain, and finally achieve a more competitive price.

At any stage of the supply chain, as long as the efficiency is low, the cost will rise, and eventually the money will be superimposed on the users. Wang Junzhou, who has no ability to sell products with a higher level of transparency

This year, there are some new opportunities for the upgrading of consumer consumption.

Novel coronavirus pneumonia affected the sale of Chinas household appliances in the first half of this year. In the first quarter, the overall retail sales of Chinas home appliance market decreased by 35.8% compared with the same period last year, and the total retail sales in the first half of the year decreased by more than 14%.

However, under such a severe situation, the sales of sterilization and disinfection of small household appliances in Jingdong has increased significantly, which also drives the growth of household electrical products such as refrigerators with preservation and bacteriostasis, washing machines with high-temperature boiling and washing functions. In addition, the sales of cooking and cleaning appliances also increased significantly.

Home appliance sales need a lot of trial, installation and after-sales services, because the isolation measures during the epidemic period led to a decline in home appliance sales. Zhuang Shuai, founder of Bailian consulting, told reporters, but at the same time, the increase in home time means that the use frequency of home appliances is higher, and the demand for replacing high-quality home appliances has also been stimulated. With the increasingly prominent effect of epidemic prevention and control, enterprises have taken corresponding measures, and the sales of home appliances will also have a higher growth in the second half of the year.

The reporter learned that in the purchase agreement signed between Gome and Jingdong, a considerable part of them are high-end new home appliances with higher customer price. Yan Xiaobing, senior vice president of Jingdong group, said that the epidemic has promoted the structural adjustment of household appliances and the upgrading of consumption, making the omni channel business model of online and offline integration more important.

The two giants complement each other

As the second stage of the cooperation between Gome and Jingdong, joint procurement undertakes the greater ambition of both sides in the category of home appliances. In absolute terms, 30 billion is not a very large scale. But in just two months, Gome and Jingdong have reached cooperation with more than a dozen domestic and international brand manufacturers after straightening out their internal processes, which is enough to demonstrate the synergy efficiency and cooperation willingness of both sides, said Zhuang Shuai

At the same time, the joint purchase agreement also reflects the influence of the two in the domestic appliance sales channel. Purchasing means that Jingdong Gome needs to bear the cost and pressure of home appliance storage sales, and both parties determine the current purchase scale based on the past sales data and judgment on the future.

On May 28, Gome, a Chinese household appliance chain retail giant, announced that it had reached a deep strategic cooperation with Jingdong. According to the announcement, Gome issued $100 million of convertible bonds to Jingdong. Assuming all the conversion rights are exercised, JD will hold about 2.80% of Gomes issued share capital after expansion.

Among them, the complementary advantages of supply chain is an important reason for Gome to introduce Jingdong strategic investment. According to the agreement, Gome will connect the home u00b7 life supply chain, medium and large goods logistics, warehousing and distribution, service system, and more than 2600 stores across the country to the Jingdong platform.

At the same time, the two sides have reached a joint procurement cooperation, Gome and Jingdong will become the largest home appliance purchasing alliance in China at present; in addition, the two sides will also carry out systematic cooperation in logistics and service level, and Anxun logistics under Gome will provide Jingdong with solutions for power transmission and installation.

Within two months after the cooperation, Gome and Jingdong have been connected in the system, and the whole business has grown rapidly. The monthly sales volume in the first two months has reached 300 million to 400 million yuan. We hope to reach the target of 1 billion yuan per month in three to five months, by the end of the year. Wang said.

At the same time, with the support of Jingdong Logistics, Gome is able to sell Jingdongs non home appliances products on its own platform. In the nationwide live tour conducted by Gome, many goods can be delivered the next day, which greatly improves the shopping experience of consumers.

Source: Yang Bin, editor in charge of economic report in the 21st century_ NF4368