Letv And China’s Largest Online Direct Sales Company May Reach A Strategic Cooperation
Chinese media reported that Letv and JD, China’s largest online direct sales company, may enter a strategic cooperation, which could be announced on Letv’s October 27th grand launch event. The event will be witnessed by nearly 10,000 people including journalists, industry leaders, and fans at a downtown stadium in Beijing, China. The cooperation would mean that Letv will have a key sales platform in the future helping Letv’s products stand out among its competitors.
Letv cooperated with JD.com in the past September 19th Le Fans festival, which reached a sales record of 280 million USD in a single day, and made several records of JD.com, like the most sold TV brand in a single day. Industry insiders believe if the partnership does happen, it is definitely a sign that Letv’s ecosystem concept has become commonly accepted in the e-commerce industry.
China’s smart phone market is highly cluttered and some brands have lost out, like the recent bankruptcy of Dakele. In the meantime, Letv’s phone stood out thanks to its differentiating content services and high-end specs. Its three models, Le 1, Le 1Pro, and Le Max have outperformed their competitors in their respective price ranges. Le 1 phone has become the top seller among the price range 1,500 Yuan (US$236) to 2,000 Yuan (US$315) in China since its launch in April this year. And its flagship phone, Le Max, has outperformed iPhone and Samsung in online high-end market since its launch in July.
Statistics show that in the first month Letv launched its phones in April, Letv had a 4.5% market share, and in less than 3 months, the sales number had been more than 1 million units. This is a record for the shortest time in reaching 1 million units sales in China. Xiaomi, on the other hand, only sold 0.4 million units in its first year in 2011.
If Letv super phone goes on the right track, it is expected that the company could make a 10 million unit sales next year, making Letv super phone a premier brand in China.
LETV is a listed company in China. Headquartering in Beijing, this 11 year old company has grown into a full-fledged multinational company with a wide range of products, including smart phones, smart TVs, smart electric vehicles, movies and tv shows, sports events and so on.
JD.com is China’s largest direct sales company. It was listed on the Nasdaq stock exchange in 2014, and in the same year, JD.com, which marked the largest listing of the year on that exchange. In 2014 JD.com recorded GMV of US$41.9 billion (RMB 260.2 billion) and net revenue of $18.5 billion (RMB 115 billion).