China Business News, 7/02/08
Chinese mobile phone retailer Zhongyu reports that in June the company entered five Wal-Mart outlets in Hunan. Zhongyu Group VP Guo Xiuhong reveals that since adopting the "in-store store" model in 2004 and partnering with Carrefour, Trust-Mart, OurLotus and other hypermarkets, the company has expanded to encompass more than 400 "in-store stores," a figure it hopes to grow to 500 by the end of the year. Guo said that Zhongyu has "basically completed" its deployment in hypermarkets across the country, and will seek to expand in regional chains and department stores in the future.
Pang Hong, the general manager of competitor D.Phone's Guangzhou operations, revealed that prospects for the model are not optimistic in southern China, while in Shanghai it may be more successful. Because of this, a number of regional chain supermarkets have tested and later backed away from the model. The company has 40 "in-store stores" in Guangdong.