Yi Hua signs cross-border eCommerce pact
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Yi Hua Department Store Holdings has entered into a strategic purchasing pact with China Merchants Food to jointly develop cross-border eCommerce and bonded merchandise business.
Yi Hua operates a group of retail businesses in Mainland China, including supermarkets, department stores, electrical appliance retailers and furniture stores, and provides consulting and planning services. Since August this year, the company has started importing merchandise and developed a cross-border eCommerce business.
Integrating with its bricks and-mortar imported merchandise direct sales stores, this online-to-offline (O2O) business model uses its fully-fledged sales channels and comprehensive online network for the sale of imported goods, the company says.
Under this week’s pact, Yi Hua will entrust the purchase of imported merchandise to Hong Kong-based China Merchants Food, which will provide logistics, storage, and distribution as well as customs clearance and inspection services.
Most of the cooperation will centre around two imported merchandise direct sales stores opened in Zhongshan City and Jiangmen City since August. The Yi Hua board believes combining its retail and distribution network with the overseas purchasing network and superior financial strength of China Merchants Food, will lower purchasing costs, ultimately resulting in a win-win situation for both companies.
Furthermore, Yi Hua will be able to widen its merchandise purchasing channels.
“These will build a firm foundation for the group to quickly develop cross-border eCommerce and imported merchandise direct sales experience stores in the next step,” the company said in a statement.
Questions & Answers
Q.What kind of imported products will Yi Hua be selling through this new partnership?
What kind of imported products will Yi Hua be selling through this new partnership?
The article does not specify the types of imported products Yi Hua will be selling. It mentions a general focus on imported merchandise through its cross-border eCommerce and direct sales stores.
Q.How will Yi Hua’s existing retail businesses be integrated into this new cross-border eCommerce model?
How will Yi Hua’s existing retail businesses be integrated into this new cross-border eCommerce model?
Yi Hua plans to integrate its brick-and-mortar imported merchandise direct sales stores with the online platform. This creates an online-to-offline (O2O) business model, using its sales channels and online network.
Q.What specific benefits does Yi Hua expect to gain from partnering with China Merchants Food?
What specific benefits does Yi Hua expect to gain from partnering with China Merchants Food?
Yi Hua anticipates lower purchasing costs and wider merchandise purchasing channels. Combining its retail network with China Merchants Food's overseas purchasing and financial strength should create a win-win situation.
Q.Which cities currently host the imported merchandise direct sales stores central to this cooperation?
Which cities currently host the imported merchandise direct sales stores central to this cooperation?
The cooperation will primarily focus on two imported merchandise direct sales stores that opened in Zhongshan City and Jiangmen City. These stores have been operational since August.