Shineco, Inc. (NASDAQ: TYHT), a producer and distributor of Chinese herbal medicines, organic agricultural products, specialized textiles, and other health and well-being focused plant-based products in China, today announced that the Company, through its subsidiary Tianjin Tajit E-Commerce Ltd., has obtained contractual rights to distribute branded products of Daiso Industries Co., Ltd.("Daiso"), a large franchise of 100-yen shops founded in Japan, via JD.com ("JD"), the largest e-commerce company and largest retailer in China.
Pursuant to the contractual arrangement, Shineco is authorized to distribute Daiso's branded products and utilize its brand names in connection therewith in China through Tianjin Tajit E-Commerce Ltd. The cooperation between Shineco and JD includes many business initiatives, covering a broad spectrum of online retail. It allows the Company to access JD's significant online customer base to advance Shineco's business pursuit in China. JD will leverage Shineco's business expertise, and Shineco will serve as JD's authorized vendor for providing its customers with access to a wide range of products of Daiso.
JD and Shineco is expected to join forces on promoting innovation of online retail business model, which is expected to improve Shineco's brand awareness and might result in enhanced marketing and continued growth.
Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, stated, "We are excited about teaming up with China's e-commerce giant JD and Japan's retail giant Daiso, and the potential market that new relationship can bring to our business. JD's vast online retail channel will enable us to distribute Daiso's products in a more efficient and economical manner to meet the growing consumer demand in China, which further drives the Company's fast expansion in e-commerce, enhances the influence of the Company and builds up the brand awareness of Shineco."
Mr. Zhang continued, "As the market globalization and digital transformation continues to challenge traditional business concept, we need to develop the business faster and in a more flexible way. Distributing Daiso branded products via JD would be an exciting leap in this transformation and allows us to move forward with an even greater focus on innovation and development to meet changing customer needs in China. Given the fact that Daiso can now benefit over 20 million Chinese families, this part of our business is expected to achieve an annual growth rate of 20% subject to contract renewal. We look forward to offering customers a tremendous number of Daiso's quality products not previously widely available across China through JD."