Dell Inc, the world's second-biggest personal-computer maker, will begin selling desktop computers and laptops through China's largest electronics retailer to win back shoppers from Hewlett-Packard Co.
The Round Rock, Texas-based company will sell computers in 50 stores operated by Gome Electrical Appliances Holdings Ltd (
The move followed similar agreements in the US, Japan and Europe this year as market share losses forced chairman Michael Dell to end a two-decade-old practice of shunning retailers. Gome's stores may help Dell boost sales in the world's second-largest PC market, where the US company trails Lenovo Group Ltd (
PHOTO: AP
"Our market share in China is obviously well below our global average and we hope to be successful here and get a rightful share of the business," said Michael Tatelman, vice president of marketing and sales for Dell global consumer business.
The Hong Kong-based Gome operated 654 stores in 168 Chinese cities as of June 30, an interim report showed last month. The retailer has 950 stores in 210 cities in China, Gome executive vice president Wang Junzhou (
Tatelman declined to say how many units the company hopes to sell in China through the partnership with Gome.
Palo Alto, California-based Hewlett-Packard, the world's largest PC maker, sells computers in China through Gome and Suning Appliance Co (蘇寧電器), the nation's largest electronics sellers.
Lenovo leads in China's market for desktop computers and notebooks in the second quarter with a 35.8 percent share, the research firm IDC said.
Hewlett-Packard is second with 13.4 percent, followed by Shanghai-based Founder Technology with 12 percent.
Dell comes fourth with 8.1 percent.
China's growing wealth is fueling demand for electronic products. Disposable incomes of urban Chinese jumped 18 percent in the first half, the National Bureau of Statistics said.
"Over the next two years the growth of the desktop market in China will make it a larger market than the US," Tatelman said.
This year, Dell began selling computers in the US through Wal-Mart Stores Inc, the world's largest retailer.
It also forged agreements with Carphone Warehouse Group Plc in the UK and Bic Camera Inc in Japan.
Last week, Dell said it plans to open its first retail store in Russia.
Separately, Gome fell the most in four months in Hong Kong trading after chairman Huang Guangyu (
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