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    Gome Jingdong'S 30 Billion Joint Procurement: Known And Unknown Of "Competition And Cooperation"

    2020/8/12 20:33:00 0

    GomeJingdong815 Price War

    It has been nearly eight years since the "815 price war" between Jingdong, Gome and Suning. Now, the situation has changed. The downturn in the home appliance market has led to changes in the industry pattern. The competitors have become allies, and the competition has also moved towards competition and cooperation.

    Recently, Gome retail and Jingdong group announced the launch of a 30 billion yuan joint procurement plan, covering traditional household electric appliances such as TV, refrigerator, washing machine, air conditioner, kitchen and bathroom appliances, as well as small household appliances, 3C and other emerging Internet red trend commodities.

    Gome said that this is the first large-scale purchase of home appliances and consumer electronics industry initiated by the retail platform this year. The two sides intend to open up new sources and reduce expenditure, reduce costs and increase efficiency through large-scale procurement, so as to reshape the new pattern of home appliance retail industry.

    The launch of the 30 billion joint procurement is actually the first joint action in the supply chain between the two sides after Jingdong's strategic investment in Gome, and it is also a sign that the cooperation between Gome and JD goes into deep water.

    It is reported that Gome introduced Jingdong as a strategic partner in May this year in the form of convertible bonds. The two sides plan to strengthen cooperation in joint procurement, joint marketing, logistics and home appliance post service.

    Now, in just two months, Gome and Jingdong have straightened out their internal processes, and have realized the docking in the system. At present, Gome's full link home appliance products support the development of Gome's flagship store business on Jingdong, which shows the synergy efficiency and cooperation intention of both sides.

    As a matter of fact, as the second stage of cooperation between Gome and Jingdong, joint procurement has undertaken the greater ambition of both sides in the category of household appliances.

    According to the first quarter report of China's home appliance industry in 2020 released by China Electronics and Information Industry Development Research Institute, in the first quarter of 2020, the retail sales of China's home appliances market reached 120.4 billion yuan; the contribution rate of e-commerce channels to household appliances retail reached 55.8%, of which the combination of tmall + Suning e-commerce was close to 36%, ranking first, and Jingdong and Gome were about 24%.

    Although Suning and tmall are still the first major alliance in the home appliance retail market due to their long-term cooperative relationship, the market share of Jingdong and Gome, together with their respective allies of Wuxing electric appliances and pinduoduo, will surpass Suning and tmall. It also means that based on their original purchasing advantages, Gome and Jingdong may form China's largest home appliance procurement scale.

    However, after the relationship between Gome and Jingdong has gone from "competition" to "competition and cooperation", the industry has predicted that the pattern of home appliance retail will change greatly. However, this is only based on the existing data and the known advantages of both sides. More importantly, the unknown challenges brought about by the competition and cooperation relationship are worth noting.

    On the one hand, purchasing means that Jingdong and Gome need to bear the cost and pressure of home appliance storage sales. At present or both parties have decided on the purchase scale of 30 billion yuan based on the past sales data and future judgment. However, in fact, this involves reverse customization through deep analysis of big data. Both JD and Gome are still in the exploratory stage and exist A certain risk.

    On the other hand, while Gome and Jingdong are deeply bound, tmall and Suning are also feeling angry. Yesterday, Suning e-buy said that the purchase amount of the "cat and Ning combined purchase" mode has reached 100 billion yuan since 2017. According to the current growth rate, the purchase amount in a single year may exceed 50 billion yuan.

    On the whole, the competitive atmosphere in the field of home appliance retail is self-evident, and with the deepening cooperation between allies, the market will certainly present fierce competition between Ali and Jingdong factions in the future, and a "good play" is slowly staged.

      

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