The Japan-based TV maker Sharp has signed a CNY1 billion LCD TV supply and marketing contract with Chinese Electrical Appliance retailer Gome at the retailer's headquarters in Beijing.
Liu Wei, vice general manager of Sharp, said Sharp would continue to supply Gome. He said that Sharp's LCD TV sets were the biggest seller in the Chinese market in 2008, which was closely related to Gome's having more than 1,000 retail outlets across China. Sharp would continue to enhance its cooperative relationship with Gome and its LCD TV products would enter the marketplace in second-tier Chinese cities with the expansion of Gome's outlets.
According to reports in local media, the new Sharp LCD TV products that are mentioned in the contract will be sold in subsidiaries of Gome Group, including Gome, Yongle, and Dazhong, from December 2008. These products not only cover the popular 32 inch and 46 inch models, but also include the new customized 42 inch, 46 inch, and 52 inch products. In addition, Sharp's latest 65 inch ultra-thin LCD TVs will appear in Gome stores of Gome for the first time.
After the news that Gome's president Huang Guangyu was under investigation by Beijing police came out, rumors said Sharp planned to suspend supply to Gome and the company had required Gome to pay the full amount outstanding for goods. But the signing of the new contract between Sharp and Gome will contradicts these rumors.