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HP China Goes Direct with Suning

Netease Tech, 7/28/09

Chinese consumer electronics and home appliance retailer Suning (002024.SZ) signed a strategic partnership agreement on distribution with PC maker HP today that will provide Suning with product directly from HP's China plants, making Suning HP's only direct sales channel in the China region. Previously, HP had stuck to a reseller sales model in China, working through Digital China (0861.HK), Ingram Micro, and other national-level resellers, who would then sell on computers to all domestic retail channels, including Suning and IT malls. The new partnership between the companies also covers increased exclusive sales rights and strengthened product management, relying on the superiority of the company's computer products to drive all peripheral product sales, with plans to set up HP "experience centers" in 500 Suning stores around the country this year. HP will send 500 professional sales staff and engineers to staff the centers. The two companies expect to achieve sales of RMB 1.5 bln in 2009, growing to over RMB 5 bln over the next three years.

Keywords: 002024.SZ 0861.HK computer distribution hardware HP PC reseller retail Suning

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