Friday, 28 September 2007

Dell To Sell PCs In China Through Gome

World’s second largest PC maker, Dell has tied up with Chinese electronics retailer Gome to sell PCs through its shops in a bid to increase its market share to double digits in the highly competitive Chinese market....

World’s second largest PC maker, Dell has tied up with Chinese electronics retailer Gome to sell PCs through its shops in a bid to increase its market share to double digits in the highly competitive Chinese market.

Dell is following a similar strategy it adopted in the US to win back the top place it ceded to compatriot HP last year. A major part of Dell’s success can be attributed to its pioneering direct selling model. However in the last year, Dell suffered massive setbacks such as accounting scandal and lost market share. After company founder Michael Dell came back to lead the company, Dell has decided to tap the retail sector to increase PC sales.

"This adds another dimension to the Dell direct model," Michael Tatelman, vice president of marketing and sales for Dell's global business, said.

The China market is dominated by domestic giant Lenovo, whose 35 per cent market share is nearly triple nearest rival HP's.