JD.com to invest $100m in Chinese electronics retailer Gome

China’s ecommerce giant JD.com announced that it will buy US$100 million worth of convertible bonds in electronics chain Gome Retail.

The investment comes after Gome raised US$200 million from JD.com rival Pinduoduo last month.

Photo credit: Daniel Cukier

Under the partnership, JD.com and Gome will work towards better supply chain integration and share resources in logistics, installation services, and financial services, among others.

The move serves as a continuation of the two companies’ cooperation after Gome launched its flagship store on JD.com in March this year. It’s also part of JD.com’s strategy to extend its reach in home appliances, the company said in a statement.

Last year, JD.com invested in electronics retailer Five Star, mobile phone and accessories retailer D Phone, and Lenovo’s smart retail unit Lecoo, among others. It also created diversified formats, including JD E-Space, JD Computer and Digital Products Stores, and JD Home Appliance Experience Stores.

It has partnered with Gome to further develop an ecosystem based on its infrastructure, including supply chain, logistics, and technology, JD.com said.

To date, the company claims to have more than 2,600 brands on its platform, with over 100 million yuan (US$14 million) in sales each.

Gome is a major brick-and-mortar retailer of home appliances and electronics in China. It goes up against Alibaba-backed Suning, which operates both online and offline to sell electronic devices and appliances, among others.