Mon, Jul 17, 2006 - Page 12 News List

Smaller computer firms face fight for survival

THE BIGGER THE BETTER?The nation's second-tier computer manufacturers are being squeezed because of their comparatively weak economies of scale and R&D resources

By Jason Tan  /  STAFF REPORTER

Meanwhile, Clevo -- another smaller player focusing on the niche clone notebook-making business -- has even set its sights on the growing consumer electronics retailing business in China.

After the company's first "Buy Now (百腦匯)" retail store was opened in Shanghai in 1998, the company is ushering in the opening of its 10th store in Guangzhou this Saturday.

The latest shop will be the company's flagship store and reportedly involves an investment of NT$3.6 billion (US$110 million).

The company is planning to set up another store by the year's end in Changchun, according to a Clevo official, who requested anonymity.

"Channel deployment will be an easier path to take compared to the computer manufacturing business. The control of retail channels will give us a competitive edge," the official said.

As China's economic growth will be driven by domestic consumer spending, the timing of Clevo's channel deployment matches the wave of spending growth there, creating another revenue stream in addition to computer production, the official said.

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