Five Star Appliance
Third largest retailer of consumer electronic appliances in china and is headquartered in nanjing.
Jiangsu Five Star Appliance Co., Ltd. operates as a significant retailer of home appliances and consumer electronics within the Chinese market. The company's business model is centered on a substantial network of brick-and-mortar stores, which now exceed 700 locations across multiple provinces. This physical retail presence is strategically focused on serving consumers in China's second to fourth-tier cities, a segment where it competes with other major players like Gome and Suning. Revenue is generated through the direct sale of a wide array of appliances and electronics to consumers.
The company was established on December 18, 1998, in Nanjing by founder Wang Jianguo. It originated from the Jiangsu Wujiao Chemical Corporation following a restructuring. Wang Jianguo's journey began in the public sector before he transitioned into entrepreneurship, guiding the company to become one of China's top three home appliance chains. Recognizing a shift in the market towards intense, low-margin competition, Wang sold his stake in 2009. This decision was part of a strategic pivot, leading him to later establish Five Star Holdings Group and successfully incubate other ventures.
Five Star Appliance's corporate history is marked by several key ownership changes. In May 2006, U.S. retailer Best Buy acquired a majority stake for $180 million as its entry into the Chinese market. By 2014, Best Buy exited China, selling its interest in Five Star to Zhejiang Jiayuan Group. The most recent chapter began in 2017 with a partnership with e-commerce giant JD.com. This collaboration evolved into a strategic investment, with JD.com acquiring a 46% stake in April 2019 and completing a full acquisition in August 2020. Now operating as a wholly-owned subsidiary named JD Five Star Electric Company, it serves as a critical component of JD.com's strategy to integrate online e-commerce with offline retail, effectively creating a physical extension of the JD brand. Keywords: home appliance retail, consumer electronics, China retail market, physical stores, chain stores, omnichannel retail, offline retail, JD.com subsidiary, appliance sales, electronics retailer, Nanjing, Jiangsu, Wang Jianguo, Best Buy China, Jiayuan Group, electronics supply chain, home appliance stores, retail network, Chinese consumer market, appliance distribution