Dell expands retail presence to China

While Dell has struck retail agreements in the US, the UK and Japan, the world’s second-largest computer maker has now confirmed plans to broaden its retailing footprint, this time via a partnership with major Chinese electronics retailer, Gome.

The deal with Gome is the first in China, which is the world's second-largest PC market, and has one of the fastest growth rates too. Starting in October, 50 Gome stores will offer the XPS M1330 and XPS 720 desktop to Chinese consumers, along with Inspiron 1420 notebook and 530 desktop, and Dimension 9200 desktop.

Dell’s sales in China have traditionally been strong in the country’s major cities, but its direct sales model has failed to reach potential customers in remote towns and villages, which is where nearly two-thirds of the Chinese population live. Dell is hoping the partnership with Gome will expand their business in the Chinese computer market, which in 2006 reached $14 billion in total computer sales, and is expected to grow by as much as 25 percent per year in the coming three to five years.