KUALA LUMPUR (Dec 28): Country Heights Holdings Bhd (CHHB) has inked a licensing agreement and a collaboration agreement with Beijing Wodong Tianjun Information Technology Co Ltd (JD.com) as part of its digital transformation plan.
It said the agreement is to develop JD.com’s omni-channel business model using JD.com technologies and CHHB’s resources for the Malaysian market.
JD.com is a B2C online retailer in China, and it started as an online magneto-optical store but soon diversified, selling electronics, mobile phones, computers, and similar items.
In a bourse filing Tuesday (Dec 28), CHHB said JDMines Sdn Bhd will be set up to operate this initiative, and it will be 70%-owned by CHHB with the remaining 30% owned by Star Pulse Sdn Bhd, a technology incubator which will be working with CHHB on the implementation and execution of the omni-channel business model.
It said with this collaboration, JDMines will build the first physical store of about 100,000 sq ft of retail space on the ground floor of Mines International Exhibition and Convention Centre.
CHHB said JD.com has invested in high tech and AI delivery through drones, autonomous technology and robots, and possesses the largest drone delivery system, infrastructure and capability in the world.
It has recently started testing robotic delivery services and building drone delivery airports, as well as operating driverless delivery by unveiling its first autonomous truck, said the firm.
CHHB said the agreement will encompass three stages:
- Stage 1 — the consultancy services on the analysis study of the customers, local market and business trends and assessment of the stores and business nature
- Stage 2 — the feasibility plan, digitalisation of store, delivery of online retailing and e-commerce business and operational solutions for the stores with omni-channels
- Stage 3 — the implementation services, including product and merchandise supply chain configuration, staff training for operation and management of the digital solutions, installation and configuration of hardware, customisation of software, concept design and implementation.
Trading in CHHB's securities will resume with effect from 2.30pm Tuesday after being halted at 9am pending the announcement.