The newly released annual look at the digital world from online and mobile measurement firm comScore makes it quite clear that retailers better be ...
Yihaodian, operator of Yhd.com, is selling grocery items on Dangdang.com, while Dangdang.com is opening a bookstore at Yhd.com. Wal-Mart Stores owns a majority stake in Yihaodian.
Chinese e-retailers Yihaodian, which operates Yhd.com, and Dangdang.com have agreed to open storefronts on one another’s sites, Dangdang announced this week. Yihaodian will sell groceries from its Dangdang storefront, while Dangdang.com is selling books on Yhd.com, they say.
Dangdang is No. 10 in the newly released Internet Retailer China 500 Guide. Yihaodian is No. 6. Its majority shareholder since 2012 is Wal-Mart Stores Inc.
“By partnering with Yhd.com, our customers now have access to a broader selection of grocery and food items from one of China's leading online grocery stores,” says Dangdang executive chairwoman Peggy Yu Yu. “At the same time, Yhd.com can now provide its customers an extensive selection of books and media products from Dangdang, a name they know and trust. Utilizing strong category advantage is a meaningful way for both companies to enrich selection to their respective customers.”
Both companies will offer the same product selection, pricing, logistics and customer service on their competitor’s site as they do on their own, Dangdang says. The e-marketplaces did not immediately respond to a request for further comments about the terms or its expectations for the deal.
Dangdang, which got its start selling books online, since last year has been expanding its categories by allowing other retailers to sell on its site. It now generates 60% of its revenue from merchandise other than books, chief financial officer Zou Jun says. The retailer, whose shares trade on the New York Stock Exchange, reported net revenue of $1.04 billion in 2013, an increase of 22% from the prior year.
Yihaodian began selling fresh food to customers in Beijing and Shanghai in September with assistance from Wal-Mart China, which operates an extensive logistics network in China for selling food. Yihaodian reported total sales of about $1.91 billion in 2013, according to Internet Retailer estimates.