Hon Hai to explore China's 3C Product Distribution Market

The Taiwan-based Hon Hai Group, the world's largest EMS (electronic manufacturing service) provider, is poised to invest over NT$10 billion (US$303.03 million at US$1: NT$33) to set up more than 10,000 retail stores, named Media Market, for 3C (communications, computer and consumer electronics) products, named Media Market, in the next two to three years in China, aiming to lead China's 3C product distribution market. 

Hon Hai's move to explore the market has been in a progressive stage, as it has teamed up with Germany's MetroGroup, a large-sized retailer in Europe to set up Media Market in China at a cost of US$50 million initially. The joint venture will be officially operational at the end of this year at the earliest.

Hon Hai Group is planning to switch its focus onto distribution channel business operation from EMS, aiming to become the first licensed distributor with in-house design and mass production capability for internationally leading brands of 3C products in China.

In fact, Pan-International Industrial Corp., affiliated with Hon Hai Group, has got off to an early start in deploying business operations in the 3C distribution market in China for the group. Pan-International's reinvested 3C product retailer, Saibo Digital, has had nearly 40 chain stores in China, and the number is still on the increase. With Hon Hai Group's patronage, Saibo Digital attracts over 8.4 million consumers a month and once generated sales of NT$200 billion (US$6.06 billion) last year as the largest 3C product retailer in the country.

Source & Copyright: CENS