Sichuan Changhong has set up a home appliance retailing management company named Le Jia Yi in Mianyang, Sichuan Province, to focus on the retailing industry.
A representative from Changhong said Changhong set up this retailing channel in order to make sure it can earn reasonable profits, as the traditional home appliance retailers like Gome and Suning are charging more and more money from home appliance manufacturers by asking them to pay various fees before their products can be sold at their business sites.
From the second half of last year, Changhong's subsidiary Changhong Multimedia Industry Company began to discuss with Changhong's distributors to prepare for an opening of this new channel. Wu Dinggang, general manager of Changhong Multimedia Industry Company will work now as general manager of Le Jia Yi, which has begun to sell the home appliance products of Changhong, Meiling and Guohong and is also open to other home appliance brands.
In order to speed up the franchise service of Le Jia Yi, Changhong reportedly offers favorable policies for the franchisers.