China’s Dangdang.com, Gome Sign Exclusive E-commerce Agreement

Yao Danqian, senior vice president of Dangdang.com, told local media that the website has signed an exclusive agreement with the home appliances retailer Gome for large home appliances and Dangdang.com henceforth not sell large home appliances.

Dangdang.com previously launched a special online channel for Gome on March 25, 2012, and all Gome’s products can be found on the B2C e-commerce website. Under this new agreement, Gome will become the only partner for Dangdang.com in this large appliance sector and Dangdang.com has stopped the operation of large home appliances business.

Yao revealed that the cooperation between Dangdang.com and Gome covers the full process of buying products, including product information, stock information, and unified prices.

Guo He, Dangdang.com’s senior director for market, told local media that the two parties will start a price war in April, lowering the profit to nearly zero.

Dangdang.com opened its platform in 2011 and it has currently formed alliances with Gome, Moonbasa.com, Letao.com, Jiuxian.com, and Lafaso.com.