Dell ties up with Gome to sell PCs in China
Dell Inc says it will sell its latest range of personal computers through Gome Group, China's largest electronics retailer.Updated: Sep 24, 2007, 16:19 IST
Dell Inc said on Monday it would sell its latest range of personal computers through China's largest electronics retailer, Gome Group.
The tie-up with GOME Electrical Appliances Holding Ltd follows similar moves by Dell, the world's second-largest personal computer maker, to expand beyond its direct-sales model to increase global market share.
"I am confident that we made the right decision to partner with a top-name brand to sustain our growth in China," Gome President Chen Xiao said in a statement.
Beijing-based Gome will start retailing Dell products next month in 50 of its stores. Gome had 654 outlets in all at the end of June.
"For Dell this is a great opportunity to extend connections with Chinese customers we may not have reached in the past," said Michael Tatelman, vice president of marketing and sales for Dell's global business.
China is the world's second-largest PC market by shipments.
The tie-up was first reported by the Wall Street Journal.
Shares in Gome were down nearly 12 per cent in resumed trade on Monday morning. A shareholder in the company last week was selling up to HK$2.39 billion ($307 million) of shares in Gome at a discount of 6 per cent to 8 per cent below on Thursday's closing price.