[Sydney, AUSTRALIA] Mobile phone and electronics retailer Strathfield, has invested nearly AUS $1 million in online music retailer, ChaosMusic today, purchasing two million ordinary shares at 45 cents per share and adding to the 750,000 shares already held by the company. Strathfield has created a 6.5 percent stake in ChaosMusic, signaling closer commercial relations between the two companies.
The move follows a successful trial in Melbourne, where Strathfield’s customers were introduced to in-store ChaosMusic retail points. The commercial partnership, first formed in June, plans to utilize a combined database to target customers who have shown a preference for shopping online.
“This new investment strengthens our relationship with Strathfield’s mature off-line business, it is a natural extension to the original deal signed, as we both wanted to take the alliance further,” said ChaosMusic founder, Rob Appel.
Strathfield plans to promote its mobile phone and consumer electronics in ChaosMusic’s user base, which now extends to over 80,000 members. The mobile user base is a useful network for both company’s product ranges, particularly in the developing area of WAP music downloads.
“The alliance will further enhance the Group’s e-commerce strategy by providing us with access to a broader on-line customer base,” said Strathfield’s chief executive officer, Andrew Kelly.
“It will also help us grow in our car entertainment market by allowing us to provide customers with a diversified range of entertainment products.”
Earlier this year,Strathfield acquired Internet-based computer products retailer, Ozbuy.com an Australian Internet-based comparison computer products site.