in inks deal with LG to sell RMB 5 billion in goods via C2M model has signed a partnership with South Korean manufacturer LG Electronics to sell RMB 5 billion ($70 million) worth of products on the e-commerce platform.

Why it matters: Chinese e-commerce giants are increasingly partnering with manufacturers to facilitate product development and marketing. The trend propelled emerging e-commerce models such as consumer-to-manufacturer (C2M), which connects consumers and producers to manufacture tailored products at lower prices. 

  • The defining feature of a C2M model is highly competitive pricing brought about by connecting factories with consumer insights, such as preferences, location, and behaviors.
  • The C2M model has powered Pinduoduo’s rapid ascent and is now gaining momentum among Pinduoduo rivals including Alibaba and 
  • Covid-19 has made health-related home appliances more popular across online marketplaces. JD sales for air purifiers and steam sterilization washing machines surged during the pandemic, the company said.

Details: Under the partnership, the two companies will cooperate in a range of areas, including product development under the C2M model, smart supply chain operations, marketing, offline expansion, and manufacturing of exclusive products. 

  • LG will also invest in JD Home Appliance Stores and set up more than 1,000 whole-house appliance demonstration stores, creating smart offline retail platforms in lower-tier markets.
  • The two companies have already worked under the C2M model for small home appliances. In May 2018, they started to develop C2M air purifiers, beauty tools, hand-held vacuum cleaners, and clothing care steam “styler” systems based on data. 

Context: rolled out its C2M unit Jingzao in 2018. The platform now offers products including custom shirts, luggage, towels, and bedding.

  • JD also partnered with electronic brands such as Lenovo, Konka, HP, and Dell to develop tailored products under the C2M model.
  • Alibaba boosted its C2M push recently with plans to transform 1,000 manufacturers into “Super Factories” with output exceeding RMB 100 million ($14 million) each within the next three years.

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at
More by Emma Lee

Source link

What do you think?

Written by Aakash Malu


Leave a Reply

Your email address will not be published. Required fields are marked *





MDI Ventures names former AC Ventures partner as CEO

Telemedicine Startups Ride On Regulatory Clarity To Tap Demand Surge