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Dell and GOME Aim to Conquer PC Market in China
By Robert | September 25, 2007
Dell is on a race to become the number 1 personal computer manufacturer again, a title that the company lost. With this in mind, Dell signed a partnership with China’s largest electronics retailer, GOME Group. This comes after the company also signed similar partnerships in USA.
China is currently dominated by local company Lenovo. They hold 35 percent of the market and this is actually around 3 times more than the closest competition, Hewlett-Packard, which holds No.1 across the world, dethroning Dell in the near past. The number two personal computer manufacturer is now trying to gain more from China, a market that was not approached much in the past. The problem is that GOME does not show a good presence in the fifth and sixth-tier cities, the part of the country that holds most computer sales.
The next step is training GOME employees to understand and sell Dell products together with offering high quality support. China’s personal computer market is currently the second largest in the world, after USA of course. You can immediately see why Dell wants to grab a piece of the shares possible. Specialists even consider that the China market will surpass US in around two years. If we take a look at the figures, China sold around 14.3 million units in a second quarter. This is the equivalent of a 22 percent rise with a 50% growth when talking about portable personal computers. It will be interesting to see weather Dell can make an impact. The company always relied on direct sales and partnerships were only signed because of the fact that they are loosing ground when meeting with the competition. Lenovo is the biggest one in China and Hewlett-Packard is the largest in USA. Taking a small share of both markets and adding it to existing sales could mean a positive impact on Dell and an interesting move in becoming Number one again.
Topics: Tech News |
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