Taobao.com's power is cutting into the revenue of traditional offline retailers in China, so two electronics retailers have decided to join forces to increase their appeal to online shoppers.
Gome's e-commerce website Gome.com.cn and Rt-Mart's e-commerce business Feiniu.com will join forces to sell more online products. The two parties are currently implementing background system docking which will allow the two companies' websites to merge products. All products on Feiniu.com are expected to be officially available on Gome.com.cn in late July 2016. By then, Gome.com.cn will release more details about the cooperation between the two parties.
The cooperation of the two parties will be divided into stages. To begin with, they will connect the background ordering system and data of Gome.com.cn and Rt-Mart. Rt-Mart will open and operate a supermarket channel on Gome.com.cn. Meanwhile, Gome.com.cn will launch and operate a 3C and home appliances channel on Feiniu.com. In mid or late July, the system and background connection of the two parties will formally started.
For Gome.com.cn, it is an inevitable strategic direction to further increase online traffic and enlarge scale. The cooperation with Rt-Mart's Feiniu.com represents the company's new move of scale expansion.
Financial terms of the deal were not released.