Retailing, Franchising, and Consumerism Business Intelligence in China

Gome Improves Retailer-Supplier Relationship

Chinese electronics retailer Gome Electrical Appliances has begun to take measures to improve the relationship with their suppliers by not collecting charges beyond contracts and reducing the cycle for goods payment.

Gome has recently signed a strategic cooperation agreement with Chinese household appliance manufacturer Haier Group valued at RMB10 billion in a bid to extend their cooperation to market research, product R&D, supply chain value upgrade and logistics management. Under the agreement, Gome, one of the nation's largest home appliance retailers, will not collect charges beyond contracts or admission fees from Haier, headquartered in Qingdao. Meanwhile, Haier will provide products with high competitiveness and good price-performance to Hong Kong-traded Gome.

In addition, the parties have established a partnership and will jointly launch the Haier Gome business division, which consists of purchase, sales, R&D, and financial personnel from the two parties. By regrouping their logistics systems, they are to drive up the efficiency of their supply chain and realize better business to business and business to consumer services.

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