Source：: International Business Daily, Henan Business News Time：2019-04-09 07:32 Pageviews：576
The 13th China Henan International Investment & Trade Fair, which attracts much attention, commenced today. It is reported that GOME Retail and the Henan Provincial Commerce Department reached a strategic cooperation agreement on April 7, which will promote the construction of “Three Centers, Two Kinds of Innovation and One Network” in Henan, i.e., a network of extensive business and logistics centering around supply chain collection center, e-commerce operation center and regional after-sales service center through the innovation of smart logistics technology and of the model of holiday warehouse management.
Leaders and guests such as He Jinping (deputy governor of Henan Province), Xue Yunwei (deputy secretary general of the government of Henan Province) and Du Juan (CEO of GOME Retail Holding Group) attended the signing ceremony. He Songhao (deputy director of the Henan Provincial Commerce Department), and Fang Wei (CFO of GOME Retail Holding Group) signed a strategic cooperation agreement on behalf of each party.
Signing ceremony
He Jinping first expressed his prospects of the cooperation between GOME Retail and Henan province, believing that GOME Retail and Henan province have a lot to cooperate because the former is an influential private enterprise in China while the latter is a highly populated province with a huge economy, great market volume, and big development potentials.
Du Juan introduced the development of GOME Retail in Henan, saying that GOME Retail has been proactively promoting its strategic transformation into a provider of total solutions of "Family and Life" and service and a provider that exports supply chains in recent years, with a growing demand for modern logistics infrastructure. She hoped that GOME Retail can further contribute to the economic and social development of Henan through the construction of the "Three Centers".
He Jinping stressed that the modern logistics industry is one of the twelve key industries through which Henan promotes transformation and development. Henan stands ready to support GOME Retail's plan of “Three Centers” by lawfully and vigorously supporting GOME Retail's projects.
He Songhao (deputy director of the Henan Provincial Commerce Department, right), and Fang Wei (CFO of GOME Retail Holding Group, left) signed a strategic cooperation agreement on behalf of each side.
The reason for GOME Retail to choose Henan
Why choose Henan as the destination to deepen GOME Retail's layout? According to Fang Wei, Henan is an important comprehensive transportation hub and a center of streams of people, logistics and information flow in China due to its geographical advantage. Henan is increasingly open especially thanks to the four "Silk Roads".
"Henan is currently a highly populated province with huge consumption potentials, making it an important market for new retail companies. It also has abundant resources, so it will be profitable to introduce many of its high-quality agricultural products to the rest of China. In the long run, we can explore international markets by utilizing the four "Silk Roads", so that we can introduce good foreign goods to China and sell GOME Retail's good products overseas."
Fang Wei said that GOME Retail can influence the rest of China and even the world based on the various advantages of Henan. In addition, Henan's four "Silk Roads" will also save GOME Retail a big amount of logistic cost.
A modern intelligent logistics center is under planning
It is reported that according to the cooperation agreement between Henan and GOME Retail, GOME Retail will choose sites for one large modern logistics base and two to three regional distribution centers in Henan, and build a purchasing & procurement center for Central China in Henan. It will thus build an important channel through which Henan's goods can be sold to the rest of China by relying on the integrated online-offline sales network of GOME Retail. Meanwhile, GOME Retail will further explore markets in counties by opening up 100 new retail stores in Henan within one year.
According to Fang Wei, GOME Retail has extended its markets to third-tier to sixth-tier cities and towns since 2018. It has cooperated with county-level governments such as Qixian county and Yanjin County in Henan to create new retail service operators to jointly explore channels of cooperation such as opening up new retail stores and facilitating the national sales of Henan's specialty products.
The first social e-commerce operation headquarters is proposed to be established
GOME Retail will also build an e-commerce operation center in Henan in addition to a smart logistics center.
It is reported that the center will become the national operation headquarters of Gome Retail's social e-commerce, focusing on cultivating main players of social e-commerce, further promoting e-commerce in Henan, expanding the scale of county-level e-commerce, exploring ways to co-build Henan's database of high-quality specialty agricultural products, fostering the co-building of an online-offline omni-channel museum of Henan's high-quality specialties, and jointly building a demonstration base for e-commerce poverty relief.
A consumer goods service center of a new generation will be built
In light of the agreement, GOME Retail will also pilot the construction of a consumer products after-sales service center of a next generation and provincial service network in Henan. It will provide whole life cycle services for household appliances and household goods by fully embedding new technologies such as IoT and big data, as an effort to promote the upgrading of Henan's service industry.
It is reported that GOME Retail, at present, operates in Henan under the name of two brands of “GOME” and “Yolo”. It has 140 stores with annual sales of RMB 5 billion and creates almost 10,000 jobs. Meanwhile, GOME Retail's annual purchases in Henan also reached RMB 2.5 billion. GOME Retail's Anxun Logistics delivered 5 million pieces of goods in Henan in 2018, registering a year-on-year increase of 50% when its current storage area in Henan was only 54,000 m².
In the future, Henan Provincial Government will also provide support for GOME Retail and Henan's related units to jointly build a smart logistics production and education park, and to create a base of transformation and application of R&D results in smart logistics and modern service industry, a mass entrepreneurship and innovation incubation and industrial cultivation base, talent training base for enterprises and logistics. It will undertake researches at the national, provincial and municipal levels, build pilot demonstration projects, and strive to create itself a first-class innovation carrier.
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