Dell Goes Retail in China with Gome

The PC maker is teaming up with the mainland's biggest electronics retailer after its direct-sales model gets off to a slow start in China

For almost a decade, Dell (DELL) has devoted considerable resources to building its China business while trying to convince skeptical Chinese computer users of the beauty of its direct-sales model. Last year, for instance, it doubled its Chinese manufacturing capacity by adding a second factory in the southeastern city of Xiamen. One exports to other Asian markets and the other is meeting demand inside China. In March, CEO Michael Dell traveled to Shanghai to unveil a new low-priced desktop PC designed by Dell's Chinese engineers specifically for domestic customers. Over the past year, the company has also opened nine kiosks in Chinese shopping centers to make it easier for the nation's consumers to order PCs from Dell on the spot.

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