Gome to consolidate online business for larger share (2)

In the second quarter of 2012, Coo8.com accounted for 1.4 percent of the domestic B2C e-commerce market in terms of transaction volume, while Gome.com.cn held less than 1 percent, Analysys International's data showed

The integration of Coo8.com's consumer resources into gome.com.cn will increase the latter's pageview traffic, which may help boost Gome.com.cn's market share to a level at least on a par with Coo8.com's, Su Huiyan, an analyst at iResearch, told the Global Times.

Su noted that this integration is meant to save costs and strengthen Gome's online shopping business amid fierce competition from competitors like Tmall.com and Suning.com.

Gome Group saw a loss of 501 million yuan ($80.4 million) during the first half of 2012, thanks to "higher labor costs and property expenses" as well as its "capital-intensive e-commerce business," the company said in its 2012 interim report in September.

According to iResearch, leading player Tmall.com seized a 57.1 percent market share in the second quarter, while Suning.com's market share jumped to 3.8 percent in the second quarter from 3.1 percent in the first quarter.

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