Dangdang, Gome may form e-commerce alliance

E-commerce China Dangdang Inc, a major Chinese online retailer, may join hands with Gome Electrical Appliances Holding Ltd, the country's second-biggest electronics retailer, to fend off rising competition from rival 360buy.com, according to China Business News on Monday.

Neither company has confirmed the news, and Dangdang declined to comment on the report to China Daily on Monday.

The two companies may cooperate in sales of electronic devices and home appliances, and a deal may be reached if talk between them goes well, according to a source close to the matter, the newspaper said.

Industry experts said the rapid growth of Beijing Jingdong Century Trading Co, the operator of 360buy.com, has put great pressure on other e-commerce websites. "Dangdang has a strong advantage in selling books, while Gome is good at selling electronic products, so it would be a win-win model for them," an expert told the newspaper.

360buy.com had about 17 percent of 240 billion yuan of China's e-commerce market in which businesses sell to consumers last year, while Gome's online shop and Dangdang together only had some 3 percent, according to Chinese IT research company Analysys International.