Business Intelligence on Retailing, Franchising, and Consumerism in China

Dell To Open 1,000 Retail Computing Centers In China

To increase its market share in China, Dell plans to set up over one thousand retail centers in 2011 and open another one thousand after-sales service sites in small cities in China.

Yang Chao, president of Dell Greater China, told local media that the 1,000 planned Chinese retail centers in 2011 are for displaying products and applications for corporate and personal users. Yang says that the added 1,000 after-sales service sites will double the number of its current outlets in China.

According to data of the market research firm IDC, Dell's market share in the Chinese market in the fourth quarter of 2010 had declined from 10% in the previous quarter to 7.5%. The new moves aim to reverse its performance decline in the Chinese market.

In addition, Dell Service has recently signed a new memorandum with the Xiamen municipal government to locate its Chinese regional headquarters in Xiamen. Dell entered the Chinese market in 1998 with its entry into Xiamen Torch Hi-Tech Industrial Development Zone, where the company also opened its Chinese regional center. At present, Dell has two manufacturing plants in the high-tech zone. In 2010, the total output of the two plants in Xiamen reportedly reached CNY34.86 billion.

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