Dell Goes to Gome
Business plans and practices have to be adaptable if they are to be successful in China. I reported some time ago that Dell was launching low-cost PCs for the mass market, using showrooms, call centers, and cash drop-off points (for the many without credit) – now they have done a deal to sell through (initially) 50 of Gome’s 700 retail outlets. Importantly, given the power of point-of-sale influence with Chinese consumers, Dell staffers in place in-store, so it could be an interesting move. According to AP:
“Dell Inc. announced a deal Monday to launch a retail presence in China by selling computers through the country’s biggest chain of electronics stores as it struggles to capture a bigger share of the booming market.
The deal extends Dell’s strategy of expanding beyond its traditional Internet- and phone-based sales model into retail to cope with competition from Hewlett-Packard Co. and other rivals. Dell also has targeted China with a low-cost PC unveiled in March and aimed at rural customers.”
Competition in China can be a killer. We’ll have to wait and see who survives this battle (and whether Dell can catch Lenovo and HP), and who will bring on the next, inevitable competitive challenge!.
See news source:
Dell to Sell PCs Through China Retailer
The Associated Press -
BEIJING (AP) — Dell Inc. announced a deal Monday to launch a retail presence in China by selling computers through the country’s biggest chain of …
Sell to Sell PCs Through China Retailer
By JOE McDONALD – 1 hour ago
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