Chinese e-commerce giant Alibaba has invested 260 million euro in Haier Electronics, a household appliance producer. Both companies will collaborate to create a logistics network to deliver large household appliances.
Part of a new network
Alibaba and Haier Electronics are not only going to deliver their own products through the new network, but they will offer other online Chinese retailers a chance to use the network as well. The investment is part of a completely new logistics system Alibaba wishes to create. Within 8 to 10 years, the new system should enable the deliveries for its subsidiaries Tmall and Taobao within 24 hours in every Chinese city.
Alibaba says the investment in the large-sized goods sector is necessary. “It is a very complicated and difficult sector to get a lot of control over it. Alibaba has put a lot of sweat into how to build that capability up”, James Roy, senior analyst for China Market Research Group, told Reuters. "Haier Group can learn a great deal from Alibaba through this partnership, and I'm confident that this collaboration will create concrete benefits for all involved”, Haier’s Zhang Ruimin said.
(Translated by Gary Peeters)