JD.com Invests in Convenience Store Brand Fook, Giants Confrontation Intensifies
Fook was previously invested in by Sequoia Capital, with a valuation of CNY 1.2 billion.
JD.com invested in a convenience store brand Fook for the first time, as the second-largest shareholder, with a 20% stake. This means that Internet e-commerce giants have also begun to face a confrontation in the convenience store industry. Before this, Alibaba had invested CNY 500 million in C-store, a Shanghai-based convenience store.
According to the 'Top 100 Convenience Stores in China in 2020, Fook ranked 10th. In Fujian province, Fook ranks first, with nearly 2,000 stores mainly located in Fujian province.
Convenience stores are difficult to synchronize online and offline, so online orders of convenience store brands account for less than 10%. However, JD.com's strong logistics, distribution and e-commerce capabilities may help Fook's online development enter a new stage.
There is also an ecosystem behind famous foreign convenience stores. The controlling shareholder of Japan's 7-11 is the Ito Yokado Group. Behind the FamilyMart convenience store is ITOCHU Corporation, and behind the Lawson convenience store is Mitsubishi Corporation. An industrialized manufacturing system combined with modern retail management technology can better serve consumers.