Samsung, Gome hand up for air conditioners
19/2/2004 13:06
South Korean electronic company Samsung Group has formed strategic
partnership with China's leading home appliance chain retailer Gome Electronic
Appliance Co Ltd, expecting the latter to aid it in its foray attempt into
China's air-conditioner market, today's Beijing Times reported.
Announcing
yesterday they have signed a 250-million-yuan (US$30 million) valued sales
contract, the two said they will cooperate in promotion and marketing for
Samsung air conditioners.
Part of the cooperation, they will invest 1 million
yuan to launch a month long promotion for Samsung air conditioners from this
week.
During the promotion, Gome will get 10-percent refund from Samsung,
while all Samsung models will have their price tags marked down by 200 to 300
yuan.
With this move, Samsung hopes it will break into Beijing's booming air
conditioner market, where sees a yearly 20-percent growth, according to Bai
Xueming, senior official with Beijing branch of Samsung (China) Investment Co
Ltd.
To increase its air conditioner manufacturing capacity in China, Samsung
has added an investment of US$30 million to build new plants, with a plan to
turn the country into its largest overseas producing center of white home
appliances, or ecologically friendly appliances.
Jane Chen / Shanghai Daily news
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