Published On: Fri, May 27th, 2016

Wowo Ltd – ADR (NASDAQ:WOWO) Teams Up With Yihai Kerry to Expand Branded Product Portfolio

Wowo Ltd – ADR (NASDAQ:WOWO) has teamed up with sales and marketing firm Yihai Kerry as part of a marketing deal. The partnership will help expand the B2B online e-commerce product portfolio through the addition of more branded products such as cooking oil flour and rice.

Wowo-Yihai Partnership Deal

Wowo Ltd – ADR (NASDAQ:WOWO) not only stands to gain access to branded products, but the partnership should also result in an increase in merchant purchasers visiting the platform. The company also plans to use the partnership to reduce purchasing costs that merchants have always complained about.

JM Wowo Chief Strategy Officer, Feng Pan, also expects the partnership to guarantee food safety for merchants.

“We believe that our partnership with Yihai Kerry to integrate the traditional catering industry with e-commerce will be mutually beneficial for both parties and the industry as a whole,” said Mr. Pang.

Fan is also confident of the partnership expanding the free market that merchants can access given the wide array of products that will be on offer. He also expect Yihai Kerry to help bolster Wow supply chai development while helping optimize food traceability in the largest catering industry.

Director of Catering at Yihai Kerry Bin Ye on the other hand expects the partnership to add another distribution channel to the company’s online sales network.

Stock Performance

Wowo Ltd – ADR (NASDAQ:WOWO) stock has been trading on a downtrend for the better part of the year. It is currently trading at lows of $3.56 a share close to its 52-week low pf $3.11 a share. Short sellers are still in control the stock having underperformed the S&P 500 by 51.76%.

However, the short selling pressure is slowly easing, sell side positions having dropped by 1.21% this month, from highs of 24,800 shares last month to current lows of 24 500.

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