When consumers see the familiar "Gome" logo reappear on their mobile screens, will it rekindle memories of this veteran home appliance retail giant? The company recently made significant adjustments to its e-commerce platform, officially reverting its app name from "True Happiness" back to "Gome" in version 9.0.0. This move unmistakably signals Gome's return to its traditional brand positioning after a two-year experiment with entertainment-focused retail strategies.
The Short-Lived "True Happiness" Experiment
In January 2021, Gome announced with much fanfare the rebranding of its online platform to "True Happiness," aiming to create differentiated competitive advantages through entertainment and social shopping experiences. Founder Wong Kwong Yu described the app as combining "entertainment" and "shopping" elements to develop innovative marketing approaches. The then-CEO of Gome Online positioned "True Happiness" as the company's new digital gateway, marking the full launch of its entertainment retail strategy.
However, reality fell short of expectations. During its two-year operation, the "True Happiness" initiative failed to reverse Gome's financial losses, instead witnessing continued deterioration in business performance. The recent rebranding represents a profound reassessment of this strategic direction.
Live Commerce Emerges as New Focus
While abandoning its entertainment retail approach, Gome hasn't relinquished its digital transformation ambitions, turning instead to the booming live commerce sector. Reports indicate that Chairwoman Huang Xiuhong personally participated in live-streaming sales events, collaborating with former CCTV host Liu Jianhong and actress Wang Yuanke on the platform (now renamed Gome App).
Data shows that Huang's three-hour year-end live-streaming event attracted 126,000 participants, achieving a 47% increase in transaction volume compared to previous best performances and setting a new annual record. While specific GMV figures remain undisclosed, internal sources report significant sales improvements, with certain product categories selling out instantly during broadcasts.
Strategic Implications of Rebranding
The reversion to the "Gome" brand extends beyond nomenclature, reflecting deeper strategic realignment. By abandoning its entertainment-focused approach and reinstating its established brand identity, the company seeks to leverage its historical market position. Analysts suggest this move signals a return to retail fundamentals, with renewed focus on core operations and operational efficiency.
Organizational Restructuring and MCN Development
Following the rebranding, users noticed significant product category reductions on the platform. Internal sources attribute this to recent organizational changes, including the establishment of an MCN department within Gome's marketing structure. This new division, coordinated from headquarters, will oversee nationwide efforts to cultivate live-streaming influencers and accounts across thirty regional branches.
This initiative demonstrates Gome's dual focus on live commerce and influencer ecosystem development, aiming to reduce dependence on external traffic sources while building proprietary live-streaming capabilities.
Challenges in the Live Commerce Arena
Despite early progress, Gome faces substantial challenges in the competitive live commerce market. Established platforms like Douyin, Kuaishou, and Taobao Live dominate with superior user bases and traffic advantages. While Gome App offers comprehensive shopping experiences, its traffic acquisition capabilities remain comparatively weak.
To differentiate itself, Gome must enhance content quality and develop distinctive live-streaming IPs. Strategic partnerships with major platforms could help channel external traffic, while leveraging its physical store network might facilitate online-offline integration and operational synergies.
Gome's rebranding reflects both its aspirations and determination for transformation. Whether the company can leverage its brand heritage and strategic adjustments to regain market prominence remains to be seen. The path forward presents both significant challenges and opportunities in China's rapidly evolving retail landscape.