Distribution News South Africa

Dell digs to China for retail gold

Dell is taking to the streets in China, where it will sell PCs on store shelves through a deal with the country's vast Gome electronics chain. In a move to bump HP from the no. 1 PC-maker throne that Dell once occupied, CEO Michael Dell has instituted an aggressive turnaround strategy with retail sales as its centerpiece.

Dell said Monday it would start selling its personal computers through China's sprawling Gome electronics chain as the company continues to embrace retail as a key part of its turnaround plan.

Hoping to tap into a customer base it doesn't reach through direct online and phone sales, Dell said it would start making its PCs available in 50 Gome stores next month, with dozens more stores to be added in 2008.

The move mirrors Dell's recent embrace of retail in the US and a few other countries - a significant shift away from the direct sales model that it rode to the top of the PC market before being bumped down to second place by Hewlett-Packard.

The effort will also borrow a page from Apple's successful retail strategy, with Dell saying it would staff Gome stores with trained Dell employees who can answer consumer questions.

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