Alibaba Group invests HKD 2.8 Bn in Haier group, as a part of a mutual partnership to combine the resources of the two companies to create a logistics and distribution system for the delivery and installation of household appliances and other large sized goods in China.
According to the official announcement, this agreement will leverage Haier Group’s supply chain management skills, logistics warehouses, delivery and installation services and Alibaba Group’s eCommerce capabilities.
Haier’s delivery and warehousing arm ‘Goodaymart’ already has a wide nationwide logistics network, and approximately 26,000 stores in China. Through this partnership, the company wants to focus on the development of eCommerce ecosystem.
Of the total HKD 2.8 Bn investment ,HKD 1.857 Bn will be invested in Goodaymart and Alibaba will subscribe 9.9% stake of Goodaymart for HKD 541 Mn, and will subscribe for convertible bonds of Haier Electronics totaling HKD 1.316 Bn.
“The future economy is an experiential economy wherein the user is no longer just a passive buyer, but an active participant throughout the entire process, and companies around the world need to adapt to this,” said Zhang Ruimin, board chairman and CEO of Haier Group.
As per WSJ, this announcement has boosted Haier Electronics share value by as much as 19% to a 14-year high in Hong Kong trade this morning. The coalition should work for mutual benefit of the two companies, as well as for Internet retailing household appliances.
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Category Ecommerce News