Retailing, Franchising, and Consumerism Business Intelligence in China

Gome Marches Into Color TV Manufacturing

Chinese electronics retailer Gome is setting foot into the electrical appliance manufacturing field.

News from Gome Color TV Summit 2008 is that Gome will have some of the Chinese mainland made color television sets currently sold at its retailing venues produced by Taiwan manufacturers through original design manufacturers. This is the first time that Gome has been involved in the upper range of the color TV supply chain.

Gome reportedly aims to take up 25% of China's total color TV sales this year. In order to reach this goal, it has set up an independent organization for color television marketing. Gome plans to have Taiwan manufactures like TPV Technology Group and Proview manufacture some of the color TV sets that were previously made by mainland manufacturers like Konka, Hisense, Changhong and Amoi, then use mainland manufacturers' brands to sell the products on the market.

Wang Junzhou, deputy president of Gome, has told the media that the three-parties'–Gome, Chinese mainland color TV manufacturers and Taiwan color TV manufacturers–cooperation can make use of their respective advantages, namely, the production and processing capacity of Taiwan manufacturers, the brand image of mainland manufacturers and the sales network of Gome.

Currently, Gome is running ODM products with a number of mainland Color TV manufacturers including Konka, Hisense, Changhong and Amoi.

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